STEP 4
ATTORNEY’S FEES AND COLLECTION COSTS
Winning a legal dispute is great unless you’re stuck paying the bill. Your lease should clearly state that you can recover attorney’s fees and costs if the tenant violates the agreement. I’ve seen clients spend thousands on eviction and still take a financial hit because their lease did not include this provision. When investor returns are involved, that kind of loss matters.
STEP 5
EARLY TERMINATION CLAUSES AND LIQUIDATED DAMAGES
Unexpected vacancies can wreck projections, especially during key periods like refinancing or sale prep. Without a clause that outlines penalties or fees for breaking a lease early, you’re at the mercy of the market. One client’s cash flow cratered after a tenant exited unexpectedly. No liquidated damages clause meant no recourse—just another reason for capital partners to get nervous.
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