Anyone who chooses to negotiate directly with the tenant must at least prepare a very detailed lease agreement that will assist him in possible disputes.
Contrary to what happens when applying for an investment fund, when most people consult their bank manager before making their choice, this is not always the case with real estate investments.
In an attempt to save some money, some homeowners choose to rent the property they own without the help of a professional. This option should be viewed with caution; called “direct negotiation”, can end up in a lot of headaches.
Tips for direct negotiation
But if you’re still willing to take care of everything yourself, you’d better have double-minded attention. For those who wish to opt for direct negotiation with the tenant, the rental dispute lawyer in Dubai suggests some tips for avoiding problems.
- Check the tenant’s ability to make payments: You should try to do a renter’s credit analysis yourself. Payment of a check, bank card with a medium balance and, of course, do not forget the guarantees (escrow, insurance, guarantor, etc.).
- Establish a detailed lease: The contract must include the obligations, rights and remedies in case of non-compliance with the obligations stipulated for both parties. Be sure to include the terms on which the rent will be adjusted. As much as this seems obvious, this is an item that most people forget.
- Inspect the property with the tenant: Even if the tenant is known, do not forget to arrange an inspection visit of the property during which he should sign that he has found that the property that is in the apartment or house is in good condition (attach a list of goods).
Sole proprietorship agreement
Although they are aware of what they should seek to preserve in terms of rights, owners who opt for direct negotiation generally do not confirm the verbal agreement in writing, i.e. they do not sign a formal contract, which ends up causing a lot of confusion and unnecessary disputes.
A common case of dispute between the parties involves the responsibility for dividing the costs of the condom, for example. While the logic of dividing these expenses is fairly simple, with the tenant paying for the day-to-day expenses and the owner for infrastructure expenses, the truth is that there are no divergences in this regard.
While self-negotiation, it is recommended to employ a real estate lawyer to regulate the process.