316: Rookie Reply: Put THIS in Your Lease Agreement (So Tenants Don’t Break It!)

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 26 August 2023

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

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Summary

Your tenant is breaking their landlord tenant lease agreement. What now? Do you go after the money or eat the loss? Depending on the amount, it may not even be worth the trouble. Either way, perhaps the more important question to ask is, “How can I prevent this from ever happening again?” Welcome back to another Rookie Reply! Broken leases are a pain to deal with, but in this episode, Ashley and Tony offer up the “magic words” that could save you the headache. They also talk about partnerships and make the case for getting pre-approved separately. Rookie investors often feel like fish out of water when it comes to networking. Fortunately, our hosts have several helpful tips on how to bring real value to the table. They also go over property management fees and how to vet a property manager before hiring them. Finally, they discuss tax strategy versus tax preparation and why waiting until tax season to hire a CPA is the wrong move! If you want Ashley and Tony to answer a real estate question, you can submit a question here, post in the Real Estate Rookie Facebook Group, or call us at the Rookie Request Line (1-888-5-ROOKIE). In This Episode We Cover: What to do if a tenant breaks a lease (and the clause you MUST put in your lease agreement) The best way to get pre-approved for a loan when you’re in a partnership Two questions you MUST ask before hiring a CPA (certified public accountant) Different types of fee structures to consider before hiring a property manager Minimizing your taxes as much as possible as an investor How to bring value as a rookie investor and build your network And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Submit Your Real Estate Rookie Question! Grab Your Copy of “Real Estate Partnerships” Today When It Comes to the Lease, Don’t Leave Any Wiggle Room Follow Gaby and Ciara on Instagram Check the full show notes here: https://www.biggerpockets.com/blog/rookie-316 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real Estate Rookie episode 316.
0:05.0	What I do put in my lease agreements is that if somebody does break a lease that
0:11.0	the rule is they do have to cover the rent until somebody else moves in or their lease agreement
0:16.8	ends. So we also have an lease agreement if you do break your lease early, you automatically
0:23.1	forfeit your security deposit. In my opinion, I would say it's not worth going after them.
0:28.7	I would, you know, 100% send them an invoice. If you have their forwarding address,
0:33.5	you might as well attempt to charge them. My name is Ashley Care and I'm here with my co-host,
0:38.5	Tony Robinson. And welcome to the Real Estate Rookie podcast where every week, twice a week,
0:43.3	we're bringing you the inspiration, motivation, and stories you need to hear to kick start
0:46.9	your investing journey. We are back with another Rookie Reply episode. We've got some great
0:50.4	questions for you guys today. We got two questions about partnerships to kind of kick things off.
0:54.3	And if you guys haven't yet, Ashley and I co-authored a book, it is called Real Estate Partnerships,
0:59.8	how to access more cash, acquire bigger deals, and achieve higher profits, publish
1:04.8	rare bigger pockets. And we go all into the nitty gritty of building out your own real estate
1:09.2	partnerships. So if you guys haven't picked up this book yet, head over to biggerpockets.com,
1:12.8	slash partnerships, and pick up your copy. And then we round out the episode by talking about
1:16.8	what should you do when someone breaks a lease. And should you be going after that tenant for
1:20.4	the lost revenue? We talk about the importance of having a CPA. And while waiting until tax
1:25.9	seasons, a higher that person is probably a step too late. And we finish off by talking about
1:30.8	the kind of ins and outs and fees that come along with hiring a property manager,
1:35.2	what's fair, what's reasonable, and what you should expect as a Rookie investor.
1:38.7	Okay, so for this week's Instagram shadow, I want to give a shout out to homegrown investing
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