Posted by Teresa on March 18, 2009 under Eviction, Landlord Tenant Lawsuits | 
Courtesy of www.flickr.com/umjandoan
Eviction: the word itself sounds unpleasant, and it is—on both sides. Does any landlord begin the eviction process against a tenant unless it is absolutely necessary? It’s not likely that anyone actually enjoys the legalities, paperwork, court orders and stress that accompany this process.
The best way to prevent having to evict tenants is to do the work required up front to attract and retain the best tenants. A few examples are:
1. Keep your property in the best possible condition;
2. Keep communication open with your tenants;
3. Screen tenants prior to signing the rental agreement;
4. Put everything in writing.
Even when all seems to be going well, you could still experience a situation that cannot be tolerated; and eviction is the eventual result. Knowing what to do in this case can make it easier.
Eviction laws vary by state and even by locality; it is vital to follow them precisely. You may decide to consult an attorney or eviction service to assist you; if so, the web is a great resource to find these specialists.
There are basic rules to evict problem tenants, no matter where you live. First, a legal reason, such as violating the lease agreement, is required. Second, you must give the tenant notice. Each state has exacting procedures that define “proper notice.” Keep in mind that in some localities, you may not follow through on the eviction if you accept rent payments after giving notice. Third, you will have a legal proceeding before a judge. If the judge’s rule calls for eviction, there will be a notice of eviction from the court.
Now, the court may side with the tenant; if you decide to appeal the decision, be prepared for another lengthy and costly procedure. You will likely need legal representation for the appeals process. And, the tenants can appeal, as well—so a first-round victory doesn’t mean you’re completely off the hook.
Preparation is key: a solid rental agreement, along with evidence (such as photographs and communication logs) will be your best tools when facing the eviction process. It’s easier to stay organized from the beginning than to try to catch up when you’re facing a court date!
Next Post: Becoming a Landlord
Posted by Teresa on March 5, 2009 under FCRA Issues, Tenant Credit Checks, Tenant Screening & Background Checks |
Steering Clear of Problem Tenants
Managing rental property is no easy task. Why make it harder than it already is? After all, your properties are only as easy to manage as the tenants who live in them. Employing best practices consistently on each and every rental is the key to managing income property smoothly—and avoiding discrimination issues, too. One way to avoid trouble is to check potential tenants’ credit and criminal history.
Is it Legal to Check a Tenant’s Credit History?
Absolutely. Renting property brings monetary and legal risks to the property owner. You need to mitigate risk wherever you can, and checking credit history is a great way to do so. As part of the rental application, your prospective tenant can agree to a credit check with a signature. You’ll know for sure if the applicant is a good risk—or one to stay away from. Even a tenant with a great credit history can miss paying rent on time—but again, the idea is to lessen that risk by choosing the best possible tenant.
Remember that all information you learn from a credit report must be held in strictest confidence, and never shared with third parties. Your applicant may have a right to the report—check your state’s guidelines and the Fair Credit Reporting Act (FCRA) to be sure you are compliant. If you reject an applicant for credit reasons, you must advise them in writing. Consider having a reputable, professional tenant screening service handle your background screening to ensure you are within the guidelines of the FCRA.
What Will a Tenant Screening Credit Check Tell Me?
The credit check will reveal how promptly the applicant pays credit cards and loans, plus any outstanding judgments or bankruptcy filings. Look for a good record of responsible finances, and see if the applicant appears to be living beyond their means. Conservative spenders will be more likely to survive an emergency or job loss without major upheaval—like breaking your lease agreement.
The credit check will also reveal previous addresses—compare these with the application and investigate any inconsistencies. There could be a simple explanation—or the prospective tenant could be hiding something.
Is it Legal to Check a Tenant’s Credit History?
While you don’t have a legal duty or obligation to do so, you may certainly include criminal history in your tenant screening process. Keeping your property, other tenants, and yourself safe from potential damage is well worth it. These reports typically cover records at the county or national level; different reports are available in different states. Check with a professional tenant screening company for details.
The important thing to remember is to be consistent: screen all applicants in the same way, each time. Making an exception could be reinterpreted as discriminatory—and it could literally open your doors to potential problem tenants. A clear policy of running criminal background checks on all applicants is the best protection for you, your other tenants, and the community.
Next Post: Renewing Leases
Posted by Teresa on February 14, 2009 under Tenant Credit Checks, Tenant Screening & Background Checks |
The perfect tenant might not exist, but there are plenty of good, even ideal tenants out there. You know them—they’re clean, quiet, and pay their rent on time, every time. How do you sift through the prospects and make sure you’re renting to the one of the good ones? It’s simple: take the time to pre-qualify tenants.
Five reasons why you should pre-qualify tenants:
Today’s economic environment: Don’t rent without knowing a potential tenant’s credit history. The current economy makes this essential.
Avoid nightmares: Even the well-employed can be nightmare tenants. A good income never guarantees good behavior, so check personal and rental references of each tenant applicant.
Screen out the criminals: Check each applicant’s source of income. If a potential tenant’s income source is unclear or worse, not legitimate, you do not want them as a tenant on your property.
Mitigate your risk: Proper tenant screening can prevent a predator from becoming your tenant and your liability.
Reduce tenant turnover: Know what you’re dealing with going in, so you don’t have to watch tenants move out due to liens, overextended credit, or other legal issues.
Remember to be thorough when pre-qualifying—require written applications from each adult who will be leasing your property.
It’s easier than you think to ensure that you have the best possible tenant—before you sign the rental agreement. Decrease your headaches and your losses by pre-qualifying every potential applicant.
Find landlord resources, including everything you need to know about tenant screening from E-Renter.com.
Next post: A Welcome Package for New Tenants
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!
Posted by Teresa on February 6, 2009 under Landlord Tips |
Part 1 of 2: Prepare Before You Advertise
As we pointed out in our previous post, the newest study on rents and occupancy rates showed that both were down overall for 2008. No big surprise there! What wasn’t down in 2008 (besides unemployment figures)?
Today we’ll show that you don’t have to be down about marketing rental property in this tough economy. If you’re sitting on vacant rental properties and tightening cash flow, we’ve got some practical ideas that won’t break your budget.
4 Steps to take before you advertise your rental property:
1. Check it out: Look at your rental unit through the eyes of a potential tenant. Even better—ask a friend to come along and suggest some honest, critical observations. You may not see things like they do.
2. Spruce it up: It doesn’t take a ton of money to put things in tip top shape! Is your rental property super-tidy, inside and out? If not, get busy. Scrub the interior and powerwash the exterior, make sure the entry or porch is spotless, and put out a fresh, new welcome mat. First impressions are critically important.
3. Clear it out: A prospective tenant does not want to see beer cans and lost dog fliers in the yard—so remove any trash from the premises. Cut the grass and trim the shrubs, sweep out the carport and haul it all away.
4. Make it safe: Repair broken or sagging steps. Check railings for security. Trim overhanging branches and out-of-control shrubs near windows. Check the exterior lighting, and install additional if needed. Finally, check all door and window locks to be sure they work properly and easily. You’ll make your prospective tenant feel safe and reduce your risk.
Your rental property makes impressions every day. Ask yourself, What does the public see? You never know who will refer your new tenant, so make sure yours is an outstanding property, ready to become the perfect tenant’s new home!
Get the best new tenants by preparing your rental property. Then screen them properly. Find landlord resources, including everything you need to know about tenant screening from E-Renter.com.
Next post: Cost-Effective Ways to Advertise Your Rental Property
