My First Rental!

7 Replies

We just bought our second home and are going to rent our first home. Does anyone have advice on a basic North Carolina rental contract to start out with?

I'm very excited to start real estate investing, I'm planning on this being the first of several rentals...

Thanks!

Congrats!!  I am under contract to purchase my first rental, so I will be interested to hear what more seasoned investors have to say on this topic. A couple of thoughts for you...  Check out the Ultimate Guide to Tenant Screening on BP. You also may want to pick up a book on landlording. I just got Landlording on Autopilot by Mike Butlet after seeing good reviews on BP.  Happy investing!

Hey Guys - Fairly new to BP but not to investing.  A good tenant process is key for all rentals.  @Chuck Hollowell  that is a pretty good book to start with!  I recently purchased and finished reading it, overall good advice!

The biggest piece of advice I have for your first rental is...  Play the cynic and assume the worst.  When you find the tenant that you have a hard time picking apart, that's the one!  Just like when you start out rehabbing, get multiple bids... Make sure you get at least 3 applications BEFORE making a decision.  In my markets, there are more tenants then rentals so we can pick the cream of the crop (over 15 applications in 4 hours from a sign in the yard, had three approved tenants from that batch, picked the best one).

As time goes on, your screening process will develop, the markers in your application will throw up flags for you.  But until you have that system in place and the experience to identify those markers stay cynical!

Best of luck in your endeavors!   Feel free to reach out if you have any questions.

Congratulations! Now your education begins... on the fast track! Check out the BP LEARN tab and read/listen up! There is also some great information available under the BP RESOURCES tab. Hang out for awhile in the BP FORUM on LANDLORDING and you will be amazed by what is in store for you! Stay on the positive side of life.  Oh, and a belated WELCOME to Bigger Pockets!

@Luke Andrew

Turning your previous residence into a rental is a great way to start.  There is a standard NC rental contract out there but you might need to be a member of the Realtor association to use it.  You can find rental contracts online that you could change to fit your needs.  If you do that I would suggest having an attorney with experience in land lording check it out. I am a property manager in the area and we have our own contract that we developed and had vetted by an attorney.  

Make sure to take pictures and a video of the property after you have cleaned and fixed any items.  This is your record of the property prior to someone moving in.  And even after you have spent time and money fixing it up the new tenant will most likely call within the first two weeks about something.  

Keep the security deposit in a separate account as well.  You do not want that comingled with your personal funds.

I am sure you will have lots of other questions so feel free to contact me and I will answer what I can.

Thanks for all the advice and suggestions!

@Mike Ritter

We will definitely take a ton of pictures and videos to document how the house looks before the first tenant moves in. Once I get my contract together, I have an attorny that is going to look over it all and make sure that it looks good.

I am going to be doing a lot of reading in this next month (while we close on our new home) and will update on here as I find my first tenant and as we move a long in the process.

Thanks again, everyone!

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