Do You Like This Article?
What is a Pay Rent or Quit Notice?
When you buy investment property, you have to remember that you are in fact a landlord. The decisions that you make will directly affect the tenant that receives housing from you. Whether or not you have a property manager, you will need to have a tenant agreement for any property that you lease. Collecting rent checks when they are on time is probably one of the best parts about owning a property. Sitting and waiting for the check to arrive after it is already late is a completely different story. To be a great real estate investor, you have to know what is a pay rent or quit notice. This document will be what stands between you as the landlord and the tenant that owes you money.
Pay Rent or Quit Notice Overview
The law is the law especially when you get into real estate. If you have completed your due diligence, you already know about the strict landlord-tenant laws that are in every U.S. state. Sometimes the law works in ways that neither party agrees with. A pay rent or quit notice is a legal document that can be used to inform a tenant living in your property that you are trying to collect the overdue rent. It is standard in the rental industry to issue a notice of past due rent 7 to 10 days after the missed payment. The terms of your lease agreement could specify the action that you take upon learning that a rent payment is behind.
What makes the pay rent or quit notice so important is that it is your last step to use before filing a lawsuit. Everything in real estate must be in writing. This creates a paper trail that will follow you throughout your term as an investor. Dealing with late rent payments is no different. The average pay rent or quit notice will include a specific time period that states when a tenant must voluntarily leave your property. The average time period is three days although some notices can be up to one month. The "quit" part of the notice is used to inform the tenant that if payment is not received in the time specified that he or she will "quit" the lease agreement. This by law frees you up to pursue an eviction.
How to Avoid Pay Rent or Quit Notices
Tenant screenings are very important to qualify a tenant. These screenings can help you avoid future issues with a tenant. These screenings are not an iron clad way of avoiding problematic tenants that sign your lease. Depending on how your lease agreement is written, you could have specific information added to it by an attorney or other legal professional. This information could include the exact process to follow before pursuing an eviction notice. You could avoid the long and sometimes frustrating process of court ordered evictions this way.
When you buy a turnkey property, the company that handles it will likely offer property management services. It is always a good idea if you are new to real estate investing to get experienced help. What a property management company can do for you is make sure your tenants are qualified. These professionals also avoid when possible the process of eviction by using all measures that are within state laws.
Sell you home form
Sell Your House Or Land Today
Get An Offer Within 15 Minutes...Guaranteed!
- What is a Pay Rent or Quit Notice?
- Real Estate Marketing for Real Estate Investors
- How Much Money Do You Need to Retire?
- Are HOA Fees Tax Deductible?
- Tips for Working with Your Spouse in Real Estate
- Short Sale Definition
- What is the Penalty for Cashing Out an IRA
- What is an Income to Rent Ratio for Investment Property?
JWB home buyers Blog11 Dec
What is a Pay Rent or Quit Notice?
When you buy investment property, you have to remember that you are in fact a landlord. The decisions that you make will directly affect the tenant that receives housing from you. Whether or not you have a property manager, you will need to have a te...
© 2018 JWB Home Buyers, LLC. All Rights Reserved