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OP, you are asking the most BASIC of BASIC questions ... credit checks? employment checks? security deposits? I am astonished that you didn't research those things BEFORE deciding to be a LL.
Those kinds of questions tell me you are not at all ready to be a landlord. Why on earth wouldn't you just SELL -- especially at today's insane prices in most places in the U.S.?
I also find it difficult to believe that you could earn $1,100/month in what you call "passive income" (as if you have to do nothing for it) in these times. Have you considered what ONE BAD TENANT could do to that "passive income" you're expecting?
I'm not trying to be negative (although I'm sure I'm coming across that way) -- but your questions are things that you should already know the answers to if you were ready to be a LL.
So we are renting a our home in NY( 3br 1-1/2 bath).
Are there any questions regarding employment or credit check that we are not able to do, ask and/or check??
Also is 1st, last and security as deposit standard or just 1st and security?
Thank you very much.
There are a ton of questions you can't ask in Suffolk County (if that's where the property is).
You have Federal, State, and County Fair Housing rules - I suggest you educate yourself if you don't plan on hiring a Realtor. And make sure the rental is legal.
There are a lot of testers out there right now, especially for rentals, that could easily trip you up; the fines can be substantial.
OP, you are asking the most BASIC of BASIC questions ... credit checks? employment checks? security deposits? I am astonished that you didn't research those things BEFORE deciding to be a LL.
Those kinds of questions tell me you are not at all ready to be a landlord. Why on earth wouldn't you just SELL -- especially at today's insane prices in most places in the U.S.?
I also find it difficult to believe that you could earn $1,100/month in what you call "passive income" (as if you have to do nothing for it) in these times. Have you considered what ONE BAD TENANT could do to that "passive income" you're expecting?
I'm not trying to be negative (although I'm sure I'm coming across that way) -- but your questions are things that you should already know the answers to if you were ready to be a LL.
OP, you are asking the most BASIC of BASIC questions ... credit checks? employment checks? security deposits? I am astonished that you didn't research those things BEFORE deciding to be a LL.
I'm not trying to be negative (although I'm sure I'm coming across that way) -- but your questions are things that you should already know the answers to if you were ready to be a LL.
OP, I suggest you heed this advice. I also am shaking my head over the Landlord 101 questions you asked. I strongly suggest before you wade into this, network with other AL's (accidental landlords) to get the real reality of being a landlord. Renting can be a nice source of income with very little hassles, but if you aren't prepared and knowledgeable of the laws, regulations, upkeep and tenant issues, it can be your worst nightmare.
Just look up the fair housing exclusions (race, religion, family status, sexual orientation, etc.) and err on the side of caution. If it feels slightly illegal it probably is. You can discriminate on certain things such as 'number of occupants' (rather than family status), pets, and number of vehicles.
When I show units to tenants, unless we really hit it off I tend not to ask many personal/background questions (except maybe where else they're looking/have looked), I just show the space and then ask them to email back an application / questionnaire that I send them.
I manage a small building, and from my observations it has always turned out better to go by the feel as opposed to on-paper comparisons, assuming the income qualifies (people go by different formulas, usually gross income around 35-40x monthly rent) and there are no major credit/background red flags (e.g. evictions). A person can have double the income and 850 credit but if they're weird or seem problematic it's a no go. If limiting turnover is a goal I recommend doing a 2-year lease for a house which is more the norm nowadays, where it's usually 1 year for apartments.
Can I ask why you are renting (plan to live in property later, think property will continue appreciating even beyond the current bubble, don't have elsewhere you want to invest the sale proceeds, etc.)? I tend to agree that with the crazy housing market it's going to take you a very, very long time to make that windfall back in the form of rental income, but there are certainly valid reasons for not selling.
Quote:
it can be your worst nightmare.
I think this all comes down to tenant selection. If you find a nice/normal person and don't charge them a ridiculous rent for a dump with a ton of pre-existing issues, it will in all likelihood be fine and low-hassle. People with nightmare stories tend to rent to the first person who walks through the door (or to friends/family), ask too high a rent (which dramatically limits applicant pool), or have a ton of properties and can't actively manage them, and rely on a management company who doesn't give a crap about anything (e.g. tenant quality, maintenance outlays) except their cut of the rent check.
ROFL!! But she’s 100% correct. You’re asking questions that you should already know the answers to… this is basic landlord 101. You haven’t even done any research on land-lording in your state, and it shows.
Stand down, pull up your state’s laws and educate yourself… no one here is going to give you legal advice. They can give you general information, but it’s your job, to educate yourself, in how to manage your property.
$1100 a month on passive income.. lololol I’m still laughing about that one.
New York is seriously hostile towards landlords, so I suggest that you sit down and very carefully read all the most current landlord tenant laws.
Next thing to keep you out of trouble, applicants should have a home inspection where they currently live to see what condition that place is in and to detect undeclared pets.
Make applicants provide proof that they paid rent on time for the past 18 months or you will get stuck with one of the Covid deadbeats who are now being evicted.
Final advice: if you are hostile to those who are offering help, you ar going to find yourself cut off from those with experience. They won't deal with your bad manners, they will just turn their backs on you.
It may be worth hiring a property mgmt co/realtor, to get it rented, even if you don't have them manage property. They know the Fair housing laws. Have them use MySmartMove or a similar screening app that pulls credit, criminal and eviction checks, and verify prior rental references. (I cross check prior addresses on credit bureau with tax tecords and google owner info and call those numbers rather than applicant provided ph numbers, to avoid an applicant giving me a fake # that says they were a great tenant.)
It may be worth hiring a property mgmt co/realtor, to get it rented, even if you don't have them manage property. They know the Fair housing laws. Have them use MySmartMove or a similar screening app that pulls credit, criminal and eviction checks, and verify prior rental references. (I cross check prior addresses on credit bureau with tax tecords and google owner info and call those numbers rather than applicant provided ph numbers, to avoid an applicant giving me a fake # that says they were a great tenant.)
On Long Island, tenants can't be asked to pay for more than a simple background check (cost not to exceed $20). Anything else must be paid for by landlord (if they want more). As Realtors we have access to some online resources that can take care of that, along with computer generated recommendations that comply with current Fair Housing laws.
New York is, and has been for a very long time, a tenant state.
Also, on Long Island it is still customary for tenants to pay the broker fee (if an agent is used); this encourages most landlords to list their rentals with agents. Of course agents can only list "legal" rentals.
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