Hello BP Family. I am looking to do the BRRRR strategy. And I have a question about the renters that I will put in the home after It is remodeled.What if I put a tenant in the property and there are damages to the property that are caused by them and not common wear and tear. Am I responsible for things like kids playing and putting holes in the wall. Or things that have to do with the renters destroying the property. I understand that I am the owner of the property and the house to be some sort of rental agreement But more insight would be great. I'm trying to get an idea of what I'll be getting myself into. I also plan on using property management.
@Aaron Thompson You will want to collect a Security Deposit. The security deposit is money the tenant pays you upfront that you are legally required to put aside and would be returned to the tenant when they leave as long as you do not find that they have damaged the property. A property manager should handle all of that for you. They should do a pre-move-in walk through with the tenant where the tenant can point out issues they see and have them documented. When the tenant moves out the property manager should walkthrough again to determine if the tenant will receive back all or part of their deposit. This is all predicated on the language of the lease but a property manager should have a good lease that protects them, the tenant and you.
Thank you Tyler. You’re a big help.