Posted by Teresa on March 1, 2009 under General | 
Verify Before You Hand Over the Keys to a New Tenant
As Landlord, You’re in Control
As a landlord, you know only too well that you cannot control your tenants’ behavior, or that of their guests. You can’t control the occasional damaging wind storm or unexpected tree limb on the roof. But in the beginning, at least, of the landlord/tenant relationship, you are in complete control: as long as you comply with all applicable housing laws, you alone decide who is approved to rent your property. There are a number of factors you may use to decide whether to reject an applicant. Today we’ll look at employment and income.
Smart Landlords Verify
The rental application should contain the following information that you must confirm prior to approving the applicant: current and previous addresses, current and previous employment, income, Social Security and driver’s license numbers, plus personal and rental references. You can do this yourself or with a professional tenant screening service.
Verifying Employment and Income
You can simply call the employers listed on the rental application; however, many employers are hesitant or have policies against releasing information over the phone. You may need to request verification in writing. It’s not a bad idea to have this information in writing as a matter of procedure. You want to be sure your prospective tenant is currently employed, and has a reliable work history.
You can also ask the applicant to provide proof of employment and income, such as pay stubs. Don’t neglect to verify these with the source of the income to be certain they have not been falsified—or even fabricated completely. For sales or commission-based income, review at least six months worth of paystubs, or have the applicant supply you a copy of their previous year’s tax return. Ask for verification of any other sources of income to be used toward rent payments, such as child support or alimony. If any stated income cannot be verified, you do not have to include it when determining minimum income requirements.
When to Be Suspicious
Be wary of business phone numbers supplied by the applicant if they don’t sound like legitimate businesses when you call. Likewise, be suspicious if the applicant insists you speak only to a certain person—they could be a real HR clerk, or they could be a friend who will supply false information. Certainly, legitimate businesses don’t always answer the phone properly, but let your intuition be your guide—it will tell you whether you need to dig a little further.
You should also be on guard if your prospective tenant has plenty of cash for security deposits and first month’s rent, but no verifiable sources of income. If income is inconsistent with obvious spending patterns, be cautious. Cash without proof of income, or extreme spending on a low income could indicate illegal activity. You don’t want to have problems down the road with either a tenant who can’t pay rent regularly or with criminal activity on your property.
Prescreen Tenants for Complete Peace of Mind
The best way to be sure you’re renting to a qualified tenant is to prescreen rental applicants. It’s easier than you think to do this online —plus, you’ll reduce your risk and your stress level!
Next Post: Checking Tenant Credit and Criminal History
Posted by Teresa on February 20, 2009 under General, Landlord Tips |
If you’re a typical rental property owner, you’ve invested a great deal of money and sweat equity in your property: the initial purchase price, interest and taxes, ongoing repairs and improvements, plus dozens of incidental costs associated with owning any property. Protect your investment with a sound inspection policy and schedule.
The law requires that you properly maintain your property to meet all applicable health and safety codes (check your state and local laws and statutes for specifics). While it is certainly in your best interest to comply with the law and keep your property in top condition, it benefits your tenants, too. The good feelings that come with living in a safe, well-maintained home are valuable assets, and go a long way toward retaining high quality tenants.
Poorly maintained properties lead to higher tenant turnover, operating losses and even potential legal problems and expenses. Why take the risk?
Consider presenting new tenants with a Property Inspection Schedule, along with the lease, when they move in—or make it part of their Welcome Package. Either way, expectations are established right up front. Well-informed tenants could be more likely to keep small issues from becoming major hassles and repairs, too—saving you money in the long run.
What should the schedule include?
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A checklist of items that will be inspected, for example: electrical, heating, and plumbing systems, smoke detectors, water heater, door and window locks;
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A target date for each quarterly or semi-annual inspection, with a notice that you will contact tenants two weeks prior to arrange a convenient time;
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Areas to detail any observed damages or needed repairs to systems, walls, ceilings, floors, roof, and landscaping;
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Your contact numbers;
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Date, time, and signature lines—to be signed by you and everyone listed on the lease.
Take photos of any damaged areas for your records. Let your tenants know when you will return to the property to make repairs—and what they can do to prevent the problem in the future.
Remember to keep a positive attitude throughout the inspection—the purpose is to keep everyone in compliance and safe. It is within your rights, however, to hold the tenant financially responsible for damages caused by negligence or misuse of your property.
Find landlord resources, including everything you need to know about tenant screening, from E-Renter.com.
Next post: Companion Animals and the Americans with Disabilities Act (ADA)
Posted by Teresa on February 11, 2009 under General, Landlord Tips, Marketing for Landlords |
Part 2 of 2: Cost-effective ways to advertise
There is a lot of movement in the rental market right now. Renters living in recently-foreclosed homes are being forced to move. Homeowners who cannot afford rising mortgage payments are becoming renters again.
Now is not the time to be passive in your advertising efforts. The good news is you don’t have to spend a ton of money. Once you’ve prepared your property, get the word out with these cost-effective advertising tips.
Advertising is good; free advertising is even better: If you haven’t tried Craigslist yet, don’t let another day go by without posting your property on the site. Craigslist is free, easy to use and immensely popular—three very good reasons to check it out!Other websites offer free listings, too—but these vary. Some require that you pay for each subsequent contact. Let your budget be your guide as you Google “Free For Rent Listings.” Wherever you list your rental, include photos! Take the time to shoot at least one exterior and several interior pictures of your property. Include the kitchen and bathrooms, closets, and any unique features that will attract your ideal tenant.
Double your efforts with some low-tech methods, too. Write up your listing, and print it out. Repeat your phone number all across the bottom of the page. Cut strips between the numbers so interested folks can tear one off. Many grocery stores, coffee shops, and community centers allow fliers on their bulletin boards, so visit a few around your rental property to see how others post their rentals. Why reinvent the wheel when you can copy a good idea?
Local community publications are another good option for free or low-cost advertising. You might hesitate to advertise a downtown high-rise condo in a farm community paper, but the idea is to get the word out and let others do your advertising for you. You don’t know where your next tenant will hear about your property, so why not try a scattershot approach?
Don’t Forget Signage. Easy to read signs or banners will send the message that your property is available. While hardware stores carry the standard “For Rent” signs, you might want to investigate the options at your local sign and banner store. To make your contact info easy to read, you may need a larger sign or banner—and since they last for years, signs are a one-time investment.
Host an Open House: They’re free, and can be a great way to gather potential tenants all in one afternoon. The key is to advertise well in advance: again, use Craigslist, fliers, and signage to get the word out. Enlist some help so visitors are all greeted and shown the property. Have a contact sheet ready at the door to gather names, phone numbers, and emails for each person so you can follow up after the open house.
Utilize the Best Form of Advertising: Word of Mouth! Ask your friends and family, your hair stylist or barber, your manicurist and the home and garden store guy if they know anyone looking for a rental property. You may be surprised at the response this easy form of networking can bring.
After all your money-saving efforts pay off and you have some great possibilities, take the next step to ensure you’re choosing the right tenant. Tenant screening is easy and fast. Proper tenant screening also gives you peace of mind—and it’s impossible to put a price tag on that!
