Residential Property-

Question 1

An investor who is interested in in purchasing single-family investment property will be concerned with a number of issues. These concerns generally fall into the following four basic categories

Answer 1

1- Location
2-Physical Condition
3-Income potential
4-Legal issues

Question 2

There are a number of consideration and clauses tha should be included in any lease or rental agreement,and they fall into three general categories:

Answer 2

1-Basic provisions
2-Legal issues
3-Responsibilities of the parties

Question 3

Basic provisions-

Answer 3

Includes such essential as the amount and due date of the rental payments, the length of the tenancy, and the number of occupants allowed in the unit. The amount required security deposit should be stated, along with a description of how the deposit will be held during the lease term and how it will be used upon termination of the lease. Whether pets are permitted on te premises should also be addressed, and alternate contacts for both tenant and landlord should be provided.

Question 4

Legal Issues-

Answer 4

Includes information regarding the landlord;s rights of entry, the legal uses to which the property may be put, and the rights of the parties in the event of breach and severability clause. A Severability clause permits any part of the lease that is found to be illegal to be severed from the contract without invalidating the remaining terms. A nondiscrimination statement should be included as well.

Question 5

Responsabilities of the parties-

Answer 5

Who is liable for which repairs? Who is responsible for obtaining insurance? What happens if the premised are sold, destroyed, or condemned ? While some of these issue may never arise during the course of most rental relationship , there should nonetheless be a provision for them in the lease

Question 6

Most residential lease are gross lease

Answer 6

With the tenant responsible for rental and utility payment, and the landlord responsible for taxes, insurance, and maintenance .