Are You and Your Rental Ready for a New Tenant?
Whether you are a seasoned landlord or are about to rent a property for the first time, it is always necessary to prepare yourself and your rental for a new tenant. It’s never as easy as putting up a sign and saying yes to the first person that shows an interest in living there.
Preparing yourself for a new tenant
Even if you are a veteran landlord, It may be quite a while since you’ve had to find a new tenant and laws have most likely changed, both for you and the renter. If you are a “newbie,” it is incumbent upon you to familiarize yourself with all of the local, state and federal regulations that govern the rental industry, particularly the Fair Housing Act and laws covering security deposits and evictions.
Being well-versed in the landlord-tenant laws governing your property can prevent future conflicts with your renter. For instance, current local and state laws may include new regulations relating to how you handle a security deposit, how much you can raise the rent and even requirements about providing written notice when you need to enter the property for maintenance work.
The most important federal law is the Fair Housing Act, which prohibits housing discrimination based on race, color, national origin, religion, sex, familial status and disability. It also requires you to provide any applicant that you have declined with a letter explaining your decision.
Preparing your property for a new tenant
If you want the best tenant at the best rent, your property must also be in its best condition. You must make sure it is “rent ready” before you put that For Rent sign out. That means doing any rehab work necessary as well as making the home as attractive to renters as possible in advance of putting it on the market.
Look at your rental through the eyes of a prospective tenant or have a friend do a walk through with you since they can be more objective than you might be. You do not want to be in the position where you are saying that you will be fixing things. Make sure everything is fixed before a prospect sees the property,
If you are unable to complete the necessary work yourself, consider hiring professionals to perk up your landscaping and clean and paint both the exterior and/or interior of the property, if needed.
If your property is older, updating your appliances will pay for itself. A modern kitchen is high on a tenant’s wish list and they are most often willing to pay more for it.
Updated bathrooms run a close second on a tenant’s list of priorities. Be sure that all plumbing and heating systems are in top working order and hire licensed pros if any work is called for.
Finally, replace or re-key locks and change passwords for programmed locks.
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Marketing your rental
The last step before marketing your rental is to determine what the rent is going to be based on the local market. Research the asking prices of comparable properties in your area with the same number of bedrooms, bathrooms, square footage and other amenities. Take into consideration their age and condition compared to your property. It pays to know your competition.
Once you’ve set your asking price, it’s time to start marketing in earnest. There are several ways that a landlord can advertise their rental properties. But first start by taking excellent photos that will be used in the online rental listing, social media and other advertising.
Next, write a detailed description of your rental, including the square footage, number of bedrooms and bathrooms, the location and access to public transportation. Mention parking options as well as proximity to restaurants, shopping and entertainment.
Point out the features that make your property more desirable than the others in the neighborhood. Include an AAOA ApplyNow link so that interested renters can easily submit an application for your rental directly from your listing.
Choosing the right tenant
There has recently been a substantial increase in rental application fraud which makes thorough tenant screening more necessary that ever.
An AAOA tenant credit check and a landlord background screening, supplemented by landlord and employment verifications, will provide you with an excellent picture of your applicant’s character. Do they honor their financial obligations by paying their bills on time? Have there been collections or bankruptcies? Do they have a criminal record or evictions in their past? These and many more questions can be quickly answered to aid you in renting to a responsible tenant.
Anyone over 18 years of age who will reside in your rental must legally be on the lease and each person should be screened and their identity verified. You will also want to ask for two or three months of their pay stubs as well as checking and savings account bank statements to see the source of the applicants’ income and where they are spending it.
Signing the lease
After thoroughly analyzing the screening and verification reports you ordered, you have narrowed your search down to the individual(s) you feel will be your best tenant(s). It is now time to sign a formal, legally binding rental lease agreement outlining the rights and responsibilities of all parties involved.
The lease agreement must include the amount of rent expected each month, the length of the agreement, any details relevant to the rental transaction and the signatures of both the landlord and all tenant(s) over 18 years of age.
Conclusion
Now, you can take down that For Rent sign and enjoy the satisfaction of knowing you have done everything possible to present your property in the best light. You have chosen a tenant who will respect it and pay their rent on time. What more could a landlord ask for?
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