renting advice and questions!! plz help (lease agreement, tenant, renter, credit check)

[emir_lisic]

Ok so I just bought a house in lawrenceville, GA all cash so I own it! I want to rent it out but I've never done this before so any kind of advice will help! A friend of a friends wants to rent it instantly ( I just bought it). They said they will pay me monthly the amount I asked for. What kind of things should I put in contract? House has a finished basement with bathroom and of course a seperate way out of house and I wouldn't want anyone but their family of four (2 young kids) living in the house, am I allowed to tell them how many people can live in there? I don't mind friends or family spending nights but I don't want anyone moving in to the basememt. I feel like they wanna move someone else in there with them cuz their parents keep calling asking size of basement and if there is a bathroom and stuff. What are some things I should think about? So I don't forget some things. They are a nice family I've known for a while but only in touch through some friends we have in common. First time renting a house and I want to know what my rights are and what their rights are. Also would nice to hear some problems anyone has had so I can look to avoid. I'm a nice guy and not gonna be a horrible landlord but when it comes to money I want what's mine and what I deserve. I want to be as fair as possible with them. Any advice will help from your experiance I want to know what u know about renting. Thank youso much in advance!!

[STT Resident]

Originally Posted by emir_lisic

A friend of a friends wants to rent it instantly ... They are a nice family I've known for a while but only in touch through some friends we have in common.

Take a deep breath and, first thing, tell these people that you won't be in a position to rent the house to them or anyone else for at least two months.

Yes, seriously. If you jump in now without a clue about what you're doing, you'll wish within a few months that you'd never bought the property.

Landlording is a business and one you have to learn as much about as possible before leaping into it. You need to be familiar with your state landlord tenant laws (you'll probably find them linked in the first "sticky" on this forum"; you need to have insurance on the property to cover it as a rental (regular homeowner's policy isn't the right one); you need a good lease which has been looked over by a local real estate attorney; you need to lean how to carefully screen all applicants and do background checks on them. And that's just the beginning.

You'll get some excellent advice on this forum from seasoned landlords but, please, let these people know right now that it's not happening for them or for anyone else until you're ready.

[willow wind]

x 2 on what STT Resident said. That post is great advice.

Never rent to family, never rent to friends or acquaintances. You will regret it. Offer it for rent on the open market to people you don't know. This is business, treat the rental as business transaction.

Go slow- learn the basics, use an attorney to draw up a rental agreement. Learn how to run a credit check, learn how to run a criminal background check if you want to also do that. Make sure that the renter's monthly income is about or at least three times the rent amount. Learn how to verify employment .

Since it is a single family home, you have other things to decide. Who will be responsible for lawn care, who will supply the equipment, who pays for repairs if the equipment breaks? To what degree will you be responsible for things happening in the house. Do you want to run over there every time a light bulb needs replacing ? Figure these things out and a host of others so they can be written into a lease agreement.

Decide what other things you want in a lease. Not trying to rent out the basement for example. How long can an over night guest stay. What about pets. Add in all things you don't want to happen

There is a ton of information within this forum on how to rent a property, what to do an what not to do. Use the search function to find it.

Tell these distant friends of yours that you're not ready to do anything with the house for the time being and can't rent to them. Rely on good legal advice for putting together a lease. Take your time. Too much can and will go wrong if you rush into trying to rent before you're learned the law and how to protect your financial well being.

[Electrician4you]

GREAT ADVICE FOLKS. saved me from a lot of typing.

I strongly suggest rethinking renting to friends family and aquaintances. Seriously rethink it.

Get a real estate lawyer to write your lease. I did. What you think a lease says and what it does say are different.

The boilerplate leases are too vague and if the tenants are smart they can play you. And there are some smart people out there.

I've been a LL for 20 years and I am still learning. Don't just jump in. Learn your state laws.

Good luck and welcome to the jungle