first time landlord-what to know and expect? (real estate, renters)

[amy_sk]

Hello,

So finally I am renting my house, I had few people come and look at it and they want to move in.
Now I am going to be a first time landlord
And this rental is not going through a property management company.

What I wanted to know was, what are things I should be aware of from your experience or knowledge? I am going to draw up the lease for 12 months and also have a deposit and a pet fee. Since this is not going through a property management company so I don’t think I can do a credit check on the renter.

What are the other things I should look into?
Thank you as always
amy_sk

[Retiredcoach]

I have been a landlord for many years and have made my mistakes along the way. I know that you are probably anxious to move quickly and collect that first check. It will be gratifying to have that regular rent check arrive, but doubly aggravating if you have a bad tenant. The best recommendation that I can give you would be to proceed cautiously. You are correct that it is increasingly difficult to get a credit report... so much red tape!! Have the tenant provide you with one personally. Have your tenant(s) completed a rental application (including past landlords, references, etc.)? Check those references thoroughly. If possible, call the employer to verify salary, etc.. Have you determined your position with pets? Dogs can be hassles, but cats (especially if not properly maintained) will cost you the most money. It is a very competitive market for rentals, and everyone appears to be a great tenant until they move in. Price your rental so that it will be the best deal for the money. Good luck!

[apvbguy]

Originally Posted by amy_sk

Hello,

So finally I am renting my house, I had few people come and look at it and they want to move in.
Now I am going to be a first time landlord
And this rental is not going through a property management company.

What I wanted to know was, what are things I should be aware of from your experience or knowledge? I am going to draw up the lease for 12 months and also have a deposit and a pet fee. Since this is not going through a property management company so I don’t think I can do a credit check on the renter.

What are the other things I should look into?
Thank you as always
amy_sk

there are web based services where you can run credit checks on people. I've only rented a home once and it really wasn't a great experience, make sure you get deposits, at least 2 months rents, and then one for clean out and damages. Establish the fact early that you are no push over and late rents will have penalties assessed. Remember once a tenant is in your home it can very hard to get them out, the courts side with tenants in many disputes. I hope this helps and doesn't scare you, good luck

[apanda]

What I would advise is, a lot of property management companies offer and tenant placement package. For a small fee you would get advertisement, they show for you, collect the apps., credit/back ground checks and you get to be on their attny-drawn leases. You have already found someone, but it may be worth it to have the checks done and get them on a lease drawn up by a real estate annty. If that isn't an option, maybe you could just pay them for a check to be done? I wouldn't ever rent without one. Make sure the condition of the home is well documented before they move in and there is no question as to what they would be responsible for as tenants.

Oh and good luck!

[Magnolia Bloom]

Great, great responses.

RE: Property managers. IMO they are like many other kinds of managers. A good one is gold, but hard to find.

My place was 600 miles away and I never had a problem with repairs or collecting rent- tenants made rent deposit right to my bank account and I could just check it out online. When a repair was needed I gave them the option- I would coordinate the repair or they could do so (but I gave them the phone number of the folks I wanted them to use). Some things that were minor, I'd ask them if they wanted me to have someone come in and fix it or if they would prefer to fix it and deduct it from their rent.

If your prospects live in the area, I'd drive by there place and see how it looks. Is the Bronco with the motor missing in their back yard? Tire tracks from parking on the lawn? I also love Google. Google their names and their e-mail names....amazing what one will find.

[FLPL75]

I would also take dated photos of the property and along with a check list have the tenants sign off on the pictures & check list as to the condition of the property before they move in.
Also when they move out do the same walk through with them so if they should be any issues you will have the back up you will need.

[riveree]

Really good advice above from everyone. Two things stand out in particular:

Cats can do worse damage than Dogs....hard to believe, but true in my experience - great tip from Retiredcoach.

Take photos or a video prior to move in....you'll need this in court if you end up there (been there, done that ) - great tip from Karla.


If I had to give you one tip, it would be this: Don't allow for late rent. If rent is due on the 1st, then it's due on the 1st, no exceptions. Every time you make an exception the message received is that you really must not need the money. Know the law and be at the ready to take steps towards eviction, it happens all too often.

[Magnolia Bloom]

Right on Riveree-

I did have one slacker tenant and the second time that he was late, I had a three-day notice affixed to his front door. Landlord tough love. But many renters think you're some fricking land barron because you have a rental prop. They never think that you may be someone quite like them with an empty house and a mortgage to pay.

[Christa LaFarlette]

Some quick notes: do a walk through with your tenant, mark off every wall, floor, just everything. Make it so that it's an initial form that each of you signs, then have a column for 12 months if that's your expiration date. At that time you will do the same, and resign. You can go online and get some rental agreements for low cost that will be binding in FL. Make it very clear that after 3 days they will be assessed a charge for late payment, period. You can do a dollar amount or a percentage. And also make sure it's in writing that if a check bounces there will be penalties and what they are (eg: value of check plus $xx.xx). Then, make sure that you have in there that after final walk through their deposit will be mailed within 14 days, or you will provide prior to move out what needs to be fixed--taken care of. Pets. You are able to have an unrefundable pet application fee, and a pet deposit. Make sure you clean appropriately and they initial the floor/walls prior to move in then again after. Take outside photos and condition as well (my huge dogs have destroyed our lawn--and will cost tons to replace the lawn if we ever have to sell). Make note what type of notice you require (30-days written is typical) and that there could be penalty if early termination without appropriate notice (your choice on that). Note what appliances are there and condition. If your home is older than 1985 make sure you do a lead paint disclosure, or if you aren't sure, just to protect yourself. Let them know they are responsible for renters insurance.
On the 3 day late payment, you'll need to decide if it's a postage date or received date. And the mode of payment expected. Put in writing what the penalties will be if this is not correctly accomplished.
You can do a credit check as you are the owner of the home. You can request this online, or have them provide. As the owner of the home you are the property manager and have the same rights and responsibilities. You will want to take a look online at the prop. mgmt laws that will apply.
I take care, as trustee of my dad's estate, one of his properties and just went online to find out lot's of info, and 'bought' the rental agreement online.
I also rented to a someone I knew. So, as we were going through all this I put on my 'business hat' and very formally went through it all. She took it seriously, as did I. I also make sure that I ask each month if anything needs taken care of in terms of repairs.
What else.....make sure if there are homeowner assoc. regulations that they are aware of them. Know your laws. You have to give notice to go into the home once it's rented. It's late and I can't think of much else off the top of my head!

Best regards,
Christa

[apanda]

I found this site this morning that may help with tenant searches, you do have to pay to see detailed info, but you may find it worth it.

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