Whether you’ve decided to rent out your current home or purchase an investment property, you’ll surely be looking for prospective renter. Most landlords will tell you that it’s not always easy to find a great tenant, so here’s how to ensure that you have the very best pool of applicants:
The first way to find a tenant, which is the easiest, is simply to use a real estate agent. Most agencies charge about one month’s rent as a fee, and it’s their job to market the home online (typically using the MLS realtor database) and show the home to prospective renters. They’ll provide the paperwork, and present you with all applications that come in.
Of course, the downside to this easy way is that it does cost money!
As a result, some landlords prefer to find the tenants themselves. Multiple major real estate websites can be valuable tools for this, as well as even Craigslist. Some websites will ask you to create an account, most of which are free, and upload a few pictures, a little information, and a monthly rental price. Then you just sit and wait for any emails or phone calls from interested renters! The good news is that because there is a general shortage of rentals, you’ll likely get plenty of applications if the home is priced properly. You can find these standard rental applications online.
Many landlords ask prospective tenants to check their credit scores, as well as references from past landlords. To further ensure that the tenant is in a comfortable financial position to rent the home, be sure to request recent paystubs, and possibly even bank statements. Generally speaking, the monthly rent should be about 1/3 of a tenant’s monthly income.
Be sure to also consider interviewing and speaking in depth with any tenants that you’re seriously considering to get a better sense of their lifestyle. You might want to ask about pets, and even to meet the pets. You may also wish to consider asking to see photos of prior apartments and homes, as this can be a great indicator for how well-kept you can expect a tenant to keep your home. Once you’ve narrowed down your pool of applicants to one great tenant, it’s time to sign the lease and collect the first month’s rent and security deposit. The security deposit amount is typically an additional one month’s rent which is returned to the tenant at the end if there is no significant damage caused to the home. If the tenant has pets, it’s not uncommon to collect a nonrefundable pet fee- sometimes up to $500. The tenant may also be asked to pay an additional small monthly fee for a cat or dog, often times between $15-75.
We wish you the best of luck with your investment property, and if there is anything that we can do to help, just give us a call at 215 699 5555!