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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