So you completed the back ground checks and the applicants for your Phoenix investment property seem like a good fit. You move forward with the lease signing and the new tenants move in. A few months later your "good fit" suddenly becomes your biggest nightmare and now what are your options? Well, depending on the issues you may need to pursue an eviction however evictions are costly and mean that the tenant gets to live in your property for free for usually around 30 days (the average time it takes to evict a Phoenix tenant). During those 30 days there is a good chance that your tenants are destroying your property so what other options do you have? Well, you could consider a mutual rescission of the lease. With this option, you may be able to get the tenant out of the property faster and possibly with less damages.
Here are the top 5 items to be sure to include in your agreement:
1. A confirmed date in which possession of the property must be returned
2. How possession must be returned - such as keys being dropped off to a certain location on a certain day and a certain time
3. Detail what happens to the security deposit keeping in mind that it is beneficial if you offer to return the deposit in full if the home is returned to you in the same condition as received as this will give the tenant incentive not to destroy the property
4. Be sure to include a clause that the tenant can't pursue any additional actions against you during or after move out
5. Include that all parties must abide by the lease until the mutual rescission of lease agreement is executed by all parties
What is difficult in these types of situations is that is not morally or legally right that you should have to even present this option to your tenant who is most likely in breach of their contract in one way or the other. However, decisions like these are business decisions and are made to in the long run save the business owner (in this case you) money in the long run.
If you, as a Phoenix self property manager find yourself in this or other types of property management situations and need any assistance please contact us at 623-748-7800 or visit our website at rpmwvphx.com