Lease Monitoring Archives

18 Jun

What Are the Key Differences Between Leasing and Renting?

Given that we cannot own everything we need, we will, at some point in life, decide to rent or lease. However, these two terms are sometimes used interchangeably. There is a significant difference between leasing and renting an apartment. In this article, we intend to highlight the difference between a lease and a rental and show you why these two terms are not similar and cannot be used interchangeably.

What It Means to Lease a House or an Apartment

When you lease a house or an apartment, you are signing a legally binding agreement between you as the lessee and the owner of the house or apartment, hereby called the lessor. The lease agreement outlines the terms of the agreement, the length of time the house or apartment will be leased, and the amount of money to be paid to the lessor throughout the length of the lease.

Typically, a lease agreement lasts for 12 months or one year. In other instances, it can last up to a period of five years, but it cannot automatically go beyond the end of the stated term.

What It Means to Rent a House or Apartment

Just like leasing, renting involves an agreement between a tenant and a landlord. However, it does not mandate the signing of a formal contract, and the agreement can be entered into through a verbal agreement between the two parties involved.

The limited restrictions associated with renting indicate that it can exist in the short term or exist as a month-to-month arrangement. The agreements associated with renting also undergo constant reviews; sometimes, it can happen each month. Still, the tenant makes consistent payments to the landlord and must adhere to the same rules that are also found in a lease. Some of these agreements include rent and security deposits, utilities, and if pets are allowed.

The Differences Between Leasing and Renting

There are differences between a lease and a rental. For starters, lease terms are longer, ranging from one year to five years. On the contrary, rental terms are month-to-month or even shorter.

Another difference between a rental and a lease is in the details of the contract period. For a lease, you cannot change the charges of the premises as long as the contract is still in force. As for a rental, the landlord can change the payment terms at the beginning of the next month or after giving a one-month notice.

Which One of These Is Best for You?

A lease or a rent both refer to legally binding contracts. Either of these two requires that you abide by the terms of each contract, and breaking the agreements attracts legal consequences. Enforcer Pros can help you gain a deeper understanding of leasing and renting as well as any HOA enforcement issues in Georgia.

24 May

Lease Monitoring

What Actions to Take If a Tenant Is Ignoring Your Association’s Rules

Most homeowners associations allow property owners to rent their homes to tenants. However, renting an HOA home to a third party can be tricky. While the tenant is a resident of the HOA community, they are not members of the HOA. For this reason, it is easy for the tenant to disregard association rules intentionally or out of ignorance. HOA rule violations can lead to significant problems down the line. This guide highlights what you need to do if a tenant disregards HOA rules.

Issue a Warning or Reminder

The first action to take if a tenant is ignoring your association’s rule is issuing a reminder to the tenant via the property owner. HOAs often correspond with tenants via the homeowner since the contract is between the HOA and the owner and not the tenant. After receiving the notice, the property owner is responsible for reminding the tenant about their obligations. If the tenant continues ignoring the reminder, the board can issue a warning in writing. The board may accompany the warning letter with a copy of the HOA’s rules and governing documents to ensure compliance.

Enforce HOA Rules

A tenant might ignore HOA rules because of a lack of enforcement. If the board is reluctant to enforce community rules, tenants might take advantage of this loophole to violate association rules. The only concern is that HOAs can only enforce association rules based on the declaration of Covenants, Conditions, and Restrictions (CC&Rs) and state law. In any case, CC&Rs are between the HOA and the property owner, not the tenant. The only time an HOA can enforce rules directly against a tenant is when the tenant acts in a way that risks public health, such as dumping toxic waste into water sources.

Take Legal Action

Legal action is the last action to take if a tenant is ignoring your association’s rules. You can engage an HOA attorney to resolve the issue amicably and reduce stress. A qualified attorney can advise the board on what actions to take if a tenant disregards your HOA rules and help settle the matter before it turns into a lengthy and costly legal battle.

Enlist Professional HOA Rental Restriction Services

If you are wondering what to do if a tenant refuses to comply with your association’s rules, you are not alone. Many HOAs have faced a similar problem. Fortunately, Enforcer Pros can help your association enforce HOA rules and ensure tenants comply. We provide homeowners association rental restrictions in Georgia and the surrounding areas. Contact us for professional help and to learn more about our services.

9 Apr

A Woman With A Displeased Expression, Making An "X" Sign With Her Arms

Blog Lease Monitoring

Top Red Flags on a Rental Application

Investing in rental property can ensure a stable income source. However, a good return on investment depends on the type of tenants you get for your rentals. Good tenants can ensure reasonable profits, while the wrong renters can lead to significant losses for landlords. For this reason, tenant screening is more critical than ever for any property owner or manager. Knowing the signs of a bad tenant can make a difference in ensuring you select good tenants and guarantee a profitable investment. This guide highlights the top red flags of a risky tenant when screening rental applications.

Poor Credit Score

A potential tenant with bad credit is among the most common red flags when renting an apartment. A poor credit rating is a sign that an aspiring tenant cannot keep up with their monthly payments. Seek tenants with a minimum credit score of 640 points or more to avoid issues down the line.

Criminal History

Renting a house to a tenant with a criminal history is the last thing you want in your rental business. Renters with a criminal history are unlikely to pay on time and might compromise your safety. Besides, they might go missing without paying their dues.

Inadequate Landlord References

When dealing with rental applications, request that the aspiring tenant provide references from previous landlords. Applicants with inadequate or no landlord references might be signs of a bad tenant. A quality tenant will have sufficient and verifiable reviews from former landlords.

Incomplete Rental Application

Ensure all applicants complete the rental application form during the screening process. Any incomplete form is a red flag for a potentially risky tenant. The renter might have a bad credit score, criminal history, or other issues that can cost you down the line.

Numerous Forceful Evictions

Numerous evictions are other tenant red flags to consider when screening potential renters. Applicants with forceful evictions can cost you time and money, leading to significant losses. After all, such renters do not care about creating lasting relationships with property owners.

Half or No Deposits

A quality tenant will pay the entire deposit before moving into your rental apartment. If the renter fails to pay the deposit or asks to pay half the amount, think twice before letting them into your building to avoid the consequences.

Enlist Quality Tenant Screening Services

Background checks are critical when searching for quality tenants for your rental property. Enforcer Pros offers professional tenant screening services for landlords and property managers. Contact us today for reliable tenant screening services in Florida and beyond, and let us get you quality tenants for a successful investment.

5 Apr

Blog Lease Monitoring

How Does a Tenant Lease Agreement Impact HOA Regulations?

A tenant lease agreement is a legal, binding contract between a tenant and a landlord. It outlines how long the tenant will stay in the rented house and how much they will pay monthly. It also stipulates other regulations to prevent future disagreements between the renter and landlord. With some HOAs now allowing homeowners to rent out their properties, a tenant lease agreement becomes equally vital to the HOA as to the landlord. So, how important is a tenant lease agreement for the HOA? Follow along to find out.

The Significance of Tenant Lease Agreements in HOAs

The importance of a tenant lease agreement to an HOA cannot be understated. This legal, binding document clearly defines the parties in the contract, including the landlord and tenant, helping eliminate ambiguity as far as liabilities are concerned. It also protects the association from losses if the homeowner defaults on their HOA fees. The HOA can serve notice on the tenant and legally seize the rent should the landlord fail to fulfill their obligation. The association cannot claim the tenant’s rent to settle the owner’s outstanding dues and assessments without a lease agreement.

How Does a Tenant Lease Agreement Impact HOA Regulations?

The lack of a tenant lease agreement can have legal implications for an HOA. First, it absolves the tenant from any obligations in case the landlord becomes an absentee owner. The tenant can file a lawsuit against the HOA if the association claims their rent.

It can also pose security risks since the association might be unable to track the renter and ensure accountability. Without a contract, the tenant might abscond from maintenance responsibilities, leading to a decline in property prices. If the tenant damages common areas, the association may have to cover the repair costs, especially if the landlord is an absentee owner.

Importance of Rental Restrictions to HOAs

While turning a home into a rental can be an excellent investment for homeowners, it can pose various challenges to HOAs. Associations should enforce various guidelines to mitigate these risks. All HOAs that allow rentals should demand tenant lease agreements and become a party to the lease. The agreement should also include provisions for rent assignment if the landlord defaults on dues and assessments. The HOA should keep a copy of the lease agreement for reference and as proof in case of any legal issues.

Enforcer Pros can help your association mitigate the risks associated with rentals in HOA communities. We provide HOA rental restriction services in Florida and the surrounding areas. Contact us for assistance and to learn more about our services.