Making money from your investment property necessitates renting it out, which in turn requires entering into legal agreements with people you don’t know. These agreements can be a potential legal minefield, and should be drafted carefully to ensure that your investment is protected.
Legal issues surrounding rental agreements require the services of a skilled real estate attorney. A property management company can be helpful in dealing with these legal issues, because they already have all the infrastructure for the rental process in place. The property management company should have a standard, state-specific lease or rental agreement drafted, complete will all the necessary disclosures (lead paint, mold, fire safety), and the division of responsibility for the various utilities. All this paperwork forms a standard packet, a service which is included in the price you pay for property management services.
When a lease expires, the property management company can also handle the property inspection and return of the security deposit, and even any disputes that might arise with the tenant over the condition of the property. If you happen upon a troublesome tenant, the unpleasantries of the eviction process can also be tackled by the management company. A notice to vacate must be supplied to the tenant (Illinois allows for 30, 60, and 90 day notices), accompanied by documentation for the legal termination of the lease. Again, any potential legal dispute by the tenant will be handled by the property management company since they are the suppliers of the legal documentation.