The \u201cRelease to the Rights of Possession\u201d form is one of the most important forms that a landlord can use.\u00a0 It is a must use for every landlord.\u00a0 It helps protect you from future claims from former tenants.\u00a0 Let me explain.<\/p>\n
When you sign a lease with a tenant, you legally give them what is termed \u201cpossession\u201d of that rental unit.\u00a0 The tenant then occupies and possesses the rental unit for the term of the lease.\u00a0 The \u201cRelease to the Rights of Possession<\/strong>\u201d form comes into play whenever the tenant or the landlord decides it is time for the tenant to move on.\u00a0 It could be at the end of a lease term, or it could be before the end of the lease term if some sort of problem arises.<\/p>\n This form should be signed by every tenant upon their move out.\u00a0 If you have three tenants in a rental unit, make sure all three sign the form when they leave.<\/p>\n Why is this form so important?<\/strong><\/p>\n The form is really sort of an insurance policy against the unscrupulous tenant.\u00a0 Suppose for example, a tenant falls on hard times and cannot afford your apartment any more.\u00a0 The tenant cannot come up with the rent and you threaten court action and eviction.<\/p>\n The tenant, not wanting an eviction on their record decides to leave and move out.\u00a0 They take their belongings and give you the keys.\u00a0 You do not get a signed \u201cRelease\u201d form. End of story right?\u00a0 Well, maybe not.<\/p>\n Three months go by.\u00a0 You have cleaned up and re-rented the unit.\u00a0 You get a call from your former tenant.\u00a0 \u201cDid you find my grandmother\u2019s diamond wedding ring? I left it in the medicine cabinet.\u201d\u00a0 \u201cNo\u201d you say.\u00a0 \u201cYou stole it.\u201d Says the former tenant and takes you to court wanting a $5,000 judgment.\u00a0 What will the court do?\u00a0 You do not have a signed \u201cRelease\u201d form. \u00a0It may come down to he said \/she said.\u00a0 Not a position you want to be in when you are in court.<\/p>\n So, protect yourself.\u00a0 Have all your tenants sign a \u201cRelease to the Rights of Possession\u201d form when they end their occupancy on your property.\u00a0 Make it a part of your move out procedure.<\/p>\n The only time you do not need to get this form signed is if you get possession via court order, say through the eviction process.\u00a0 The court releases possession to you through the eviction process.\u00a0 But that is a story for another blog post.\u00a0 Happy Investing!<\/p>\nThe \u201cRelease to the Rights of Possession\u201d form basically says two things:<\/h3>\n
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