| Many people are daunted at the aspect of trying to | | | | license, social security card and some form of income |
| handle all of the paperwork and legalities of managing | | | | employment verification. |
| their own property, so they pay anywhere from 6-12% | | | | You now sit down with all of these applications and |
| of their GROSS rental income to a property | | | | run credit checks (to check their credit) AND public |
| management company that MOST of the time won't | | | | record searches (to see if they have any evictions on |
| give it nearly the attention your property deserves. | | | | their record). A public record search is a standard |
| Managing your property really doesn't have to be that | | | | option with most companies that run credit reports for |
| hard. It's like anything else, once you get over the | | | | landlords. Just make sure to select that option as well |
| learning curve, you can virtually put your | | | | and DON'T rent to anyone with bad credit and |
| money-generating machine (your property) on autopilot! | | | | certainly not with an eviction on his or her report! |
| So, let's start by breaking down the big picture. | | | | 3) Go over each application package and select the |
| 1) Advertise your vacancy | | | | person you think would make the best tenant. |
| There are many great places to advertise your | | | | Look at their credit history. Have they paid on time? |
| property. | | | | Any evictions? No? Good. |
| First and foremost, put a sign in the front yard where it | | | | Call their previous landlord. Ask if they paid their rent on |
| is easily visible from passersby. People that know the | | | | time, if they were a good tenant and followed the rules |
| neighborhood and are driving around specifically to look | | | | of the building. And make sure to a) insure they are |
| for a place to live need to know if it's available! | | | | currently employed by verifying their job and b) make |
| Post flyers in places where your prospective tenants | | | | sure their income will cover the rent. A good rule of |
| frequent: the mall, the local church, the grocery store, | | | | thumb is to make sure they gross three times the rent |
| etc. | | | | amount on their monthly paycheck. |
| Take an ad out in the classified section of your local | | | | 4) Select a tenant and offer them a lease agreement. |
| newspaper or online. | | | | But I don't know anywhere to get a lease agreement. |
| There are a few great and free places to post your | | | | Well, there are many places online and even at office |
| vacancy online: Craigslist is terrific for this kind of thing! | | | | stores that will sell a generic lease agreement, BUT |
| You can always list it with a realtor, but unless it is a | | | | and this is a big but, you must for your own protection |
| "higher-end" type of rental, it probably isn't worth your | | | | use a state specific and state compliant lease |
| money and their time. | | | | agreement. |
| Now that you are being flooded with phone calls, how | | | | Every state has different laws with regards to lease |
| do you narrow down the competition? | | | | agreements. Make sure you know that your lease is |
| 2) Give your interested renters a rental application (you | | | | state specific or have it checked out by a real estate |
| can find great free ones on line too!) | | | | attorney (this can be expensive, so ask for their fees |
| You have to have a filtering process and this is where | | | | ahead of time). And if you get your lease online, you |
| it starts. | | | | need to make sure it too complies with the laws of |
| Have your prospective tenants fill out an application | | | | your state. |
| and pay for their credit check. This is a great way to | | | | Congratulations, you have just completed the first |
| see who a) steps up to the plate and b) probably has | | | | major part of managing your own property... |
| decent credit. | | | | My next article will be on finishing up the Move-In |
| Collect your prospective tenants completed application | | | | paperwork and beginning happy relations with your |
| form, credit check fee (check with your state to see | | | | new tenant. |
| how much you can charge), a copy of their driver's | | | | |