Some of the justifiable causes for allowing tenants to break off a lease agreement include domestic violence cases and those who are scheduled to start with military service.
If it’s your first time to rent out a house in Denver or Centennial, property management services can take care of handling tenants who unexpectedly cancel their contracts. First-time landlords often become overwhelmed with day-to-day operations, especially for those who have multiple units.
Valid Causes for Pre-termination
Tenants who will serve in the military must provide a written notice to their landlords, who would then cancel their contracts one month after the next rental due date. When the reason involves domestic violence, a copy of a police report is necessary for pre-terminating a lease. In other cases of canceled tenancies, a landlord’s actions led tenants to break off the agreement.
For instance, “constructive eviction” happens when the landlords fails to respect a tenant’s privacy. This can happen by replacing locks without proper notice or removing fixtures like doors and windows. Renters could usually ignore the contract and find another place. In fact, they could even sue the landlord for violating their rights as a tenant.
You should consider hiring a property manager, who would make sure that you comply with Colorado’s landlord regulations. While there are different real estate management companies, it’s essential that you can do your due diligence about service providers with a good track record especially for handling payments.
Modes of Payment
When you ask a property manager about their process of collecting payments, ask if they do so through credit cards or direct deposits to bank accounts. Credit card payments entail transaction fees, which can be charged against your account. A disgruntled tenant could also report the transaction as a fraudulent one, which means that you end up with no payment for a specific time.
It will still cost money and time even if you have a chance of winning a lawsuit, so it’s better to avoid the inconvenience of credit card payments. Direct deposits to your bank accounts also have the risk of ending up in another person’s bank account, either because of a clerical error or the tenant’s mistake. Cash payments are ideal if you only own a single house for rent, and you don’t have a real estate manager.
However, it’s essential that tenants pay in person and you make a receipt. This guarantees that they have given the exact amount. Consider accepting personal checks when the tenant already established a good payment record. Another option involves online payments without the need to input your bank account information.
It can be a headache when two or more tenants pre-terminate their lease agreements for valid reasons, but you won’t have to deal with this problem if you delegate it to a property manager. The same applies when you don’t want to evict an undesirable tenant by yourself, or when you want to screen the next occupants yet remain unsure if you are complying with the law.