Renting out your Property in The Bahamas

The key to peace of mind

Renting out your property may seem like an easy source of income, but it can be a legal minefield. If there are disagreements between you and your tenants, it can quickly become a drain on your time and resources. The best way to avoid this is to take the right legal advice at the start. Bahamian property attorneys can deal with all areas of Landlord and Tenant Law and are skilled in settling disagreements. But prevention is better than cure. Before you even look for a tenant, a Bahamian property attorney can help you decide what the terms of the tenancy will be and can build these terms into a written 'tenancy agreement' or 'lease' tailored to your needs.

Tenancy agreements

A tenancy agreement is a contract between you and your tenant. This contract can be written or verbal. In The Bahamas there is no law to say that landlords have to provide a written tenancy agreement, but it is a good idea to do so. Otherwise, if you have a dispute with your tenant about the terms of the agreement, it is your word against theirs as to what was agreed.

The main advantage of having a written tenancy agreement is that it sets out your rights and responsibilities as a landlord in a way that is legally enforceable. This keeps disagreements to a minimum because both sides know where they stand.

 

Getting advice

Ideally, you should contact your Bahamian property attorney as soon as you start thinking about renting your property out. This will give you a clear idea of the terms to offer to any tenant you are considering. A Bahamian property attorney can:

• explain the different types of tenancy agreement and identify the most suitable for you;
• draw up or check a tenancy agreement for you;
• highlight the essential requirements and terms of your tenancy agreement;
• explain any related legal issues;
• warn you of any pitfalls, including advice on how to end an agreement; and
• give you advice on the type of tenant references to ask for.

 

Drawing up your agreement

Once you have appointed an attorney, they will explain your rights and responsibilities as a landlord. You then have the opportunity to explain your specific needs and concerns. This will help the Bahamian property attorney to draw up a tenancy agreement that is tailor-made to your needs. During this process, your Bahamian property attorney will cover the following issues with you.

 

Length and type of tenancy

What type of tenancy do you want? How many tenants will live in the property? What notice will you or your tenant need to give to end the tenancy? How long will the tenancy last?

 

Restrictions

What restrictions do you want to place on your tenants about keeping pets or playing loud music?

 

Rent

How much rent can you charge? When must the tenant pay the rent? What penalties are there for paying late? When can you increase the rent? Are there to be any utilities etc. included in the rent?

 

Deposits

What deposit must the tenant pay? Is the property furnished? If so, will the agreement include a list of furnishings and fittings? When should you return the deposit and in what circumstances can you keep it?

Service charges and repairs

Will you provide any services such as laundry, maintenance or meals? Will you be making separate service charges for these? What are your duties to make repairs?

 

Access

What are your rights to enter the property? It is a good idea to give all these issues some thought before you visit your Bahamian property attorney, and to take along any documents which may be relevant.

 

Using the agreement

Once you have a tenancy agreement, make sure that both you and your tenant sign it at the start of the tenancy. You must give your tenant a copy of the agreement if they ask for it.

 

Related matters

Your Bahamian property attorney can also give you advice on some of the broader issues involved in being a landlord, such as tax liability and what to do if the property you want to rent out is mortgaged.

 

Disagreements

If you do have a disagreement with your tenants, there are several ways your Bahamian property attorney can help. Whether it's a simple case of checking your legal rights, or something more complicated such as adapting your tenancy agreement, negotiating a solution or even going to court, your Bahamian property attorney has the knowledge and experience to support you.

 

Costs

Charges can vary between attorneys and depend upon the type and complexity of the tenancy agreement you want. Before you decide who to use, check with a few local attorneys to compare their charges. Remember that you may have to pay more for a more experienced attorney.

 

Disclaimer

While we have made every effort to provide accurate information, the law is always changing and affects each person differently. This information is no substitute for specific advice about you personally and we will not be liable to you if you rely on this information.  If you would like more specific legal advice you may e-mail us by clicking here.

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Making a Will in The Bahamas

Who should make a will?

If you care about what happens to your property after you die, you should make a will. Without one, the State directs who inherits, so your friends, favourite charities and relatives may get nothing.

It is particularly important to make a will if you are not married and live with a cohabitant who you would like to be cared for should you pass away. This is because the law of The Bahamas does not automatically recognize cohabitants (partners who live together) as having the same rights as husbands or wives. As a result, even if you've lived together for many years, your cohabitant would be left with nothing if you have not made a will.

A will is also vital if you have children or dependants who may not be able to care for themselves. Without a will there could be uncertainty about who will look after or provide for them if you die.

You should consider taking legal advice about making a will if:

• several people could make a claim on your estate when you die;
• you want to include a trust in your will (perhaps to provide for young children or a disabled person, or simply protect your assets in some way after you die);
• you own all or part of a business.

Once you have had a will drawn up, some changes to your circumstances - for example, marriage, separation or divorce - can make all or part of that will invalid or inadequate. This means that you must review your will regularly, to reflect any major life changes. A Bahamian attorney can tell you what changes may be necessary to update your will.

Using an attorney

Although it is possible to write a will without an attorney's help, this is generally not advisable as there are various legal formalities you need to follow to make sure that your will is valid. Without the help of an expert, there's a real risk you could make a mistake, which could cause problems for your family and friends after your death.

What your attorney will need to know

Once you have appointed a Bahamian attorney, they will need the following details from you.

What you own

Details of everything you own, including property, cars, personal valuables, stocks and shares, bank accounts, insurance policies, any businesses you own, and pensions.

Who gets what?

Who do you want to leave these assets to? How do you want to divide your property between your loved ones, friends or charities? Are there any conditions you want to attach to these gifts (for example, that young people must reach a particular age before they are paid money you have left them)? Do you want to leave money to charity?

Family and other beneficiaries

Details of your family and status. Are you married? Do you have any children or any other dependants? If you give your Bahamian attorney relevant details, they can tell you about any legal pitfalls.

Guardians

If you have any children that may still be under 18 when you die, you may need to name someone as their legal guardian.

Other wishes

Do you have any particular wishes for your funeral? Do you want to be buried or cremated? Are there any other instructions? For example, if you want to be an organ donor this can be included in your will.

Executors of your will

You must also name the people you want to appoint as 'executors' of your will - the people who carry out the administration of your will after your death. These could be friends or family members, or a professional such as your attorney. A good combination would be a friend or family member and a professional. Ideally, you should choose someone who is familiar with financial matters. Make sure you ask your executors whether they are happy to take on this duty as there are long-term responsibilities involved, particularly if you include a trust in your will. It is a good idea to ask someone younger than you are.

Signing the will

Once the will has been drawn up it is not effective until it has been signed. There are several rules affecting the signature process which, if not followed correctly, will make your will invalid. For example, witnesses and their husbands or wives cannot benefit under the will. Many people use staff at their attorney's office to act as their witnesses to avoid this problem.

Where to keep the will

It is important to keep your will in a safe place and tell your executors or a close friend or relative where it is. People often ask their attorney to store their wills for them. Most attorneys will do this for free, but sometimes there is a small fee.

Keeping your will up to date

You should review your will at least every five years and after any major life change such as getting separated, married or divorced, having a child or moving house. It is best to deal with any major changes by getting a new will drawn up. But it is also possible to make minor changes (or 'codicils') to your existing will. In both cases it is best to consult an attorney.

Costs

Charges for drawing up a will can vary between attorneys. They also depend on:

• the experience and knowledge of the Bahamian attorney; and
• how complicated your will may be.

Before you decide who to use, check with a few local attorneys to find out how much they charge. But remember that cost should not be the only consideration. It is equally important to find an attorney who is approachable and whose advice you understand.

Disclaimer

While we have made every effort to provide accurate information, the law is always changing and affects each person differently. This information is no substitute for specific advice about you personally and we will not be liable to you if you rely on this information. If you would like more specific advice, you can e-mail us by clicking here.

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