Not everyone is cut out to be a landlord. Those who aren’t often find this out the hard way. However, most former landlords learn valuable lessons along the way. New landlords can use insights from these experiences to become better landlords themselves.

The following are seven key lessons and tips from former landlords:

1. ALWAYS Have a Lease, and Make Sure It’s Detailed and Comprehensive

It can be tempting when renting to friends or family to forego the formality of a lease. Former landlords advise strongly against this. The lease offers the opportunity to spell out important rules in writing and obtain a signature so that everyone is on the same page. Whether the tenant is a stranger or someone familiar, a detailed, comprehensive lease is a must.

2. Enact a Late Fee – And Enforce It

Former landlords also strongly advised toward having a late fee policy and always enforcing it. Not doing so sends the message that it’s OK to let rental payments slide, and some tenants abuse this and keep paying later and later. The late fee must be reasonable and in compliance with state laws.

3. Think Twice About Renting to Friends and Family

Some former landlords report that renting to people they knew was one of the worst mistakes they made. Even with a lease, these people can sometimes take advantage of the situation and push the envelope in terms of what’s allowed. From late rent to a lack of cleanliness to causing property damage, former landlords often reported bad experiences with renting to people they knew. The relationship suffered, and they were often impacted financially. Tax laws may be different and more costly in these situations as well.

4. Use Tenant Screening

While some landlords attempted DIY tenant screening, many found that the results they received were not as accurate and comprehensive as they were hoping for. A professional tenant screening service eliminates the guesswork and can ensure that all relevant areas will be thoroughly checked.

5. Double Your Estimated Cash Reserve Amount

Landlords often have a basic idea of how much cash they think they should set aside for repair and upgrade costs in rental units. However, former landlords attest that they always tended to estimate too low – to the tune of half of what’s really required. To make sure essential repairs will be covered, it’s best to double this estimated amount.

6. Create a List of Go-To Helpers

When something breaks down in a unit, it can be a real emergency for tenants. The best way to handle this is by being prepared. Former landlords recommend compiling a list of go-to electricians, plumbers, exterminators and handymen so that they can be called at a moment’s notice. Ensure that these service people are reputable and will charge fair prices even in emergency situations.

7. Prepare For Some Stress

Former landlords also reported that the ability to handle stressful situations was a must. The best landlords have patience, tolerance and a higher-than-average threshold for handling difficult situations. Occasional challenges are inevitable and part of the territory. That said, proper tenant screening can help to forego many issues and headaches so that fewer problems arise down the road.

Being a landlord isn’t for everyone, but there are steps that can be taken to increase the odds of success. Take a page from former landlords by learning from their experiences in these seven key areas.

Sources:

http://www.nolo.com/legal-encyclopedia/free-books/renters-rights-book/chapter3-6.html
http://www.cbsnews.com/news/when-renting-property-to-relatives-know-the-tax-rules/

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

Landlords assume great risk every time they rent a rental property to a tenant. Whether that tenant is a corporation, an individual or a small business owner, risks include:

• Building structure damage
• Unpaid rent
• Use of premises for illegal operations
• Activities or actions that pose a danger to other tenants or neighbors

Landlords At Risk

When tenants directly or indirectly threaten your rental property (for example, with income loss or bodily harm or injury), landlords are put in the crosshairs for public disdain, legal action or financial breakdown. The following case indicates that landlords can be held liable for tenants’ actions in their rental property.

In a case in Bakersfield, California, a landlord leased a room to a convicted felon who subsequently raped a woman and set the house on fire. The woman is suing the landlord for negligence by renting to a dangerous criminal.

Whether or not the court rules against the landlord, he will still have to potentially pay thousands of dollars in legal fees to defend himself or herself, and spend countless hours sitting in lawyer’s offices and courtrooms.

Tenant Screening Benefits Landlords Rental Property

With a background screening process in place, landlords may be able to protect themselves from harm. Tenant screening benefits landlords and a rental property in many ways and can reveal the following:

• Tenants with criminal histories
• Tenants with poor rent-paying histories
• Fraudulent rental applications
• Tenants with violent tendencies

With a tenant screening service, landlords can quickly identify tenant applicants who don’t meet the minimum qualification criteria for a particular rental property.

A History Revealed

Tenant screening and background screening may identify undesirable aspects of the history of an applicant that may disqualify him/her from being able to rent the unit from the landlord. A background check performed by EvictionRecords.com can reveal such things as prior eviction records, county and state criminal records, federal court records, identity verification and address history. With these background record searches available to landlords, it’s possible to help ensure that any applicant who is being seriously considered will be up to the landlord’s standards.

It’s inadvisable for a landlord to lease a rental property to a tenant without conducting a criminal history search at the minimum. A tenant screening related to previous rental history and credit is also advised to help protect the landlord from potential threat related to rental property damage and unpaid rent.

Contact us today to learn more about background screening for your tenant applicants.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

Vacant rental units take money out of landlord pockets. The sooner they can get new tenants, the better their cash flow will be. However, landlords must be careful not to compromise quality tenant screening techniques for the sake of filling the vacancy, or they will risk problems later.

The following are some effective ways to market vacant rental units and fill them quickly with desirable tenants.

1. Narrow the Marketing of Vacant Rental Units to a Specific Type of Tenant

General “For Rent” notices are commonplace, and they all begin to look the same to potential renters searching for a place to live. Make listings stand out by explaining why the vacant rental units are ideal for certain tenants. Give reasons why the location is perfect for a family, seniors or the young professional just out of college.

2. Create a Professional Looking Listing

Investing time in creating a listing with photos, lists of amenities and statistics is important for success. When a listing looks refined and professional, it will draw a higher class of tenant to the property. The landlord will gain credibility with potential renters by ensuring the listing is appealing, accurate and full of useful information.

3. Make Extensive Use of the Internet

Today’s tenants go online with their smartphones and tablets to check out listings for vacant rental units. Many are accustomed to finding what they want on social media sites and other Internet resources. Landlords should create a dynamic presence for themselves and their properties with a website or social media page such as Facebook or Pinterest.

4. Advertise Where the Tenants Are

List properties in the locations most likely to draw the kinds of tenants desired. Consider contacting the human resource departments of large employers in the area to get involved in any referral programs they might have. Some realtors specialize in relocating people and businesses; they can also be a valuable resource. Local colleges often have housing departments that will list properties for rent.

5. Streamline the Screening Process

Landlords should strive to be as fast and efficient as possible with their tenant screening. If potential renters are kept waiting too long while the process is taking place, they may decide to look elsewhere. A professional tenant screening service can offer quick turnaround on thorough background checks.

The more time and attention a landlord places on focused marketing efforts, the better their chances are of finding ideal tenants to fill vacant rental units. Time invested in creating efficient marketing and screening processes can pay off with profitable, problem-free quality tenants.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

Like any industry or area of life, the world of owning and renting out properties has its own trends. Most of the leasing trends arise out of tenant needs and regional or cultural developments.

The following are some current leasing trends that landlords might consider adopting in their own rental businesses:

1. Smoke-Free Properties

More and more Americans are aware of the risks and health hazards of smoking. As many cities and states adopt laws banning smoking in varying degrees, landlords are following suit. Many people have quit smoking, and fewer young people are being swayed to try this health-eroding habit. A smoke free policy can help to keep properties clean, fresh, appealing and healthy for all renters.

2. Electronic Rent Payments

One of the other leasing trends in property ownership is the acceptance of rent payments digitally. The world is increasingly becoming paper-free, and many tenants appreciate the ability to use their PayPal account, a mobile app or e-check banking to make on-time rent payments.

3. A More Flexible Pet Policy

Some landlords have a 100 percent ban on pets with little to no flexibility. However, leasing trends lately have shown many property owners adopting more flexibility on this issue and are allowing pet-friendly apartment. Allowing one cat or dog for an increased security deposit is one option. Landlords might also establish a weight or size limit for pets.

4. Creating and Enforcing a Subletter Policy

There are a variety of approaches to the idea of allowing existing tenants to sublet the unit they are renting. Landlords should include a clear, concise subletting policy on the lease. Whether they allow tenants to sublet a room or the whole unit, clarity about this issue is key to avoiding misunderstandings down the road. Some landlords forbid subletting altogether; if so, this policy and its consequences should be clearly stated on the lease.

5. More Stringent Applicant Screening

In addition to the leasing trends mentioned above, landlords are also less willing to take risks with their properties than ever before. In today’s world, the potential for financial issues or criminal behavior is just too great. Better to avoid a high-risk tenant than have to deal with the stress of handling bad behavior down the road. Professional tenant screening can identify applicant red flags so that landlords can connect with the highest quality tenants for their units.

Like any area of life, there are trends that come and go in the world of property rental. Landlords should consider these leasing trends and ideas for their own properties. Doing so just might result in higher tenant satisfaction levels and more success as a landlord.

Source: http://www.americanhumane.org/animals/adoption-pet-care/caring-for-your-pet/pets-in-rental-housing.html

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.

The issue of tenant gun ownership and gun owner’s rights are in the press quite a bit right now. Overall, tenants are protected under the second amendment of the Constitution, but landlords may still conduct criminal background checks to ensure tenants will be responsible gun owners.

Tenant Gun Ownership Specifics Vary By State

The second amendment as well as individual state’s rights play into what is acceptable for this issue on a state by state basis. Many states have conceal and carry laws on the books, which means that individuals with the required permit may carry a loaded firearm on their person. This means they may also have them in their living space, even if it is a rented apartment, condo or home.

Even in states that do not have conceal and carry permits on the books, tenant gun ownership is generally allowed by virtue of our nation’s Constitution. While many fear the integrity of the second amendment is in danger of being challenged by President Obama, for now, tenant gun ownership rights are still intact. That said, because landlords are technically business owners, they do have some latitude in the rules they set up for their properties.

From “Reasonable Regulations” to Inherent Rights

Some landlords and property owners have taken it upon themselves to challenge the Constitutional right to bear arms. A few have imposed bans on all weapons and firearms in their buildings and properties.

While gun owners can challenge these landlords and often win, some states like Colorado are actually more supportive of this type of action taken by landlords. The term “reasonable regulations” is often used to describe what landlords are allowed to enforce, although the specific meaning can be hazy.

Some states actually have laws on the books that prohibit property owners from issuing any type of restrictions on gun owners. Minnesota, California and Virginia are three such examples. Other states are more reticent on the issue, and a range of outcomes are possible if a landlord decides to impose parameters on the rights of gun owners who live in their properties.

Rental Screening Makes All the Difference

Regardless, landlords can always make use of a professional rental screening service to assist them in finding quality renters for their properties. Criminally-minded persons with guns are a threat to any vicinity; however, there are also many responsible, law-abiding gun owners in America. Resident screening can help with determining and avoiding the potential tenants who have a history of violence or criminal behavior.

Disclaimer: The information on this website does not constitute legal advice and is governed by our Terms of Use. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this website and its associated sites.