7 Questions from the first renting out landlord.

Riverside, California
General Landlording & Rental Properties
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7 Questions from the first renting out landlord.

Kevin Kim
Member since 2022 · 58 posts · 10 votes

Hello,We purchased a property in San Bernadino California couple months ago,And we just listed our house for rent on Zillow.This is our first time to rent out house, and I have a few questions.

1. Back ground check. I have searched, and I think AAOA tenants screening is good option to do background check tenants..Please let me know if using just AAOA tenants screening good enough, or do I also have to use other websites or services for comprehensive search.

2.I heard that I have to get a signed agreement from tenant for background check.Please let me know if there is a template that I can use, or is there an easy way to get a signed agreement rather than email back and forth and get screening fee from applicants? Can I do all those things in AAOA?

3.We’re going to do background check all people(18+) who will live in our house. However what if they lie?

    They can say just 2 people will live, and 10 people can live in there. And even though we see many people in the house, they can claim that they are just visiting them for few days. I think it is easy for tenants to hide bad background family member by not giving us information about the person.

    4.What is the best methods to get rent. I think asking tenants set autopay is the best way. It looks like that I can do it though Zillow. Is it good?

    5.I heard that we can also have No smoking policy. Please let me know if it is good to have those policy. Also, if tenants lie about it. How can I know?

    6. When I listed our house , Zillow asks me if I want "Accept Zillow online applications".

      It looks like that it offers applicant summary, credit report, and background check. It will be very convenient.However, I have researched, and it looks likes that their background check is bad. And, if we're going to use 3rd party background check like AAOA, I guess that I should not allow Zillow online application, right? Can I use both Zillow online applications and other service like AAOA? If I don't use Zillow online applications, please let me know procedure that we need to do from getting applications to rent out. I guess that I need to email rent application to people who contact us, showing them house house, and based on the information, we need to background check, and we choose one applicant, and getting sign.. etc.

      7. I'm going to allow pet any size. However I saw many rent doesn't' allow pets, or allow only small dogs.Are there reasons? If tenants get renter's insurance, I think there will be no problem.

      It will be appreciated for any comments.

      Thank you. 

        1Reply
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        Most Popular Reply

        Greg M.
        Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
        2y

        This is the single most important thing to remember when renting a unit: There is no scenario whatsoever where having a bad tenant is better than having no tenant. Adhere to this no matter what. 

        1/2) AAOA background check should be fine. Tell the prospect upfront what your knockouts are so they won't waste their money if they know they aren't going to get the unit. Have the tenant pay for the check and the site will send you the reports. 

        3) If this happens and you think they are lying, this is for an eviction court judge to decide. I have wording in my lease that allows a set number of days an unauthorized person can spend the night. Above that I list a per day fee of $150 per unauthorized person. FYI, right now you cannot evict for unauthorized occupants. CA still thinks that COVID is going on. 

        4) Every way except cash in your hand can be reversed. Zillow and the like are fine. Checks are fine. As long as you get paid, don't worry too much about how the payment arrived.

        5) No one wants to live in an ex-smokers house. 100% put this policy in the lease. Make it clear that smoking includes vape, hookahs, etc. You will instantly know if they lied when you smell the smoke in the unit when doing an inspection. You will also be able to see it on the walls. You can get a test kit if you want to go that far. 

        6) Some people love it and some hate it. I prefer more control. With you having one unit, you can spend some time handling things without the need for an outside service.

        7) Every disallowed pet magically becomes an ESA. Price in the rent allowing pets. Sure, pets can destroy units. So can children and bad adults. Require the pet be licensed and vaccinated. 

        Figure out your rental requirements. Put them in writing and follow them. Sob stories should be ignored. Wanting to help people in a difficult time should be ignored. 

        Keeping rent below market because the tenant is old/disabled/going through a divorce/etc should not happen. Lease violations MUST be addressed. If you let a tenant break one of the rules, they will break all of the rules. 

        Require Renters Insurance with you listed as an Additional INTEREST and a minimum of $100,000 in liability coverage. YOU are protected with this insurance. 

        Make sure you have landlord insurance on the property. A standard homeowners policy will not cover you. Make sure you have significant liability coverage. 

        FYI, before you list the unit for rent, read up on the local, state, and federal laws on housing. Screwing up is not a mistake, it can be a life altering event. Oops I didn't know turns into lawsuits and massive fines. Know what you can and can't do with late fees, security deposits, bounced checks, pet, etc. 

        2Reply
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        12 Replies

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        • Greg M.
          Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
          2y

          This is the single most important thing to remember when renting a unit: There is no scenario whatsoever where having a bad tenant is better than having no tenant. Adhere to this no matter what. 

          1/2) AAOA background check should be fine. Tell the prospect upfront what your knockouts are so they won't waste their money if they know they aren't going to get the unit. Have the tenant pay for the check and the site will send you the reports. 

          3) If this happens and you think they are lying, this is for an eviction court judge to decide. I have wording in my lease that allows a set number of days an unauthorized person can spend the night. Above that I list a per day fee of $150 per unauthorized person. FYI, right now you cannot evict for unauthorized occupants. CA still thinks that COVID is going on. 

          4) Every way except cash in your hand can be reversed. Zillow and the like are fine. Checks are fine. As long as you get paid, don't worry too much about how the payment arrived.

          5) No one wants to live in an ex-smokers house. 100% put this policy in the lease. Make it clear that smoking includes vape, hookahs, etc. You will instantly know if they lied when you smell the smoke in the unit when doing an inspection. You will also be able to see it on the walls. You can get a test kit if you want to go that far. 

          6) Some people love it and some hate it. I prefer more control. With you having one unit, you can spend some time handling things without the need for an outside service.

          7) Every disallowed pet magically becomes an ESA. Price in the rent allowing pets. Sure, pets can destroy units. So can children and bad adults. Require the pet be licensed and vaccinated. 

          Figure out your rental requirements. Put them in writing and follow them. Sob stories should be ignored. Wanting to help people in a difficult time should be ignored. 

          Keeping rent below market because the tenant is old/disabled/going through a divorce/etc should not happen. Lease violations MUST be addressed. If you let a tenant break one of the rules, they will break all of the rules. 

          Require Renters Insurance with you listed as an Additional INTEREST and a minimum of $100,000 in liability coverage. YOU are protected with this insurance. 

          Make sure you have landlord insurance on the property. A standard homeowners policy will not cover you. Make sure you have significant liability coverage. 

          FYI, before you list the unit for rent, read up on the local, state, and federal laws on housing. Screwing up is not a mistake, it can be a life altering event. Oops I didn't know turns into lawsuits and massive fines. Know what you can and can't do with late fees, security deposits, bounced checks, pet, etc. 

          2Reply
        • Kevin Kim
          OP
          Member since 2022 · 58 posts · 10 votes
          2y
          Quote from @Greg M.:

          This is the single most important thing to remember when renting a unit: There is no scenario whatsoever where having a bad tenant is better than having no tenant. Adhere to this no matter what. 

          1/2) AAOA background check should be fine. Tell the prospect upfront what your knockouts are so they won't waste their money if they know they aren't going to get the unit. Have the tenant pay for the check and the site will send you the reports. 

          3) If this happens and you think they are lying, this is for an eviction court judge to decide. I have wording in my lease that allows a set number of days an unauthorized person can spend the night. Above that I list a per day fee of $150 per unauthorized person. FYI, right now you cannot evict for unauthorized occupants. CA still thinks that COVID is going on. 

          4) Every way except cash in your hand can be reversed. Zillow and the like are fine. Checks are fine. As long as you get paid, don't worry too much about how the payment arrived.

          5) No one wants to live in an ex-smokers house. 100% put this policy in the lease. Make it clear that smoking includes vape, hookahs, etc. You will instantly know if they lied when you smell the smoke in the unit when doing an inspection. You will also be able to see it on the walls. You can get a test kit if you want to go that far. 

          6) Some people love it and some hate it. I prefer more control. With you having one unit, you can spend some time handling things without the need for an outside service.

          7) Every disallowed pet magically becomes an ESA. Price in the rent allowing pets. Sure, pets can destroy units. So can children and bad adults. Require the pet be licensed and vaccinated. 

          Figure out your rental requirements. Put them in writing and follow them. Sob stories should be ignored. Wanting to help people in a difficult time should be ignored. 

          Keeping rent below market because the tenant is old/disabled/going through a divorce/etc should not happen. Lease violations MUST be addressed. If you let a tenant break one of the rules, they will break all of the rules. 

          Require Renters Insurance with you listed as an Additional INTEREST and a minimum of $100,000 in liability coverage. YOU are protected with this insurance. 

          Make sure you have landlord insurance on the property. A standard homeowners policy will not cover you. Make sure you have significant liability coverage. 

          FYI, before you list the unit for rent, read up on the local, state, and federal laws on housing. Screwing up is not a mistake, it can be a life altering event. Oops I didn't know turns into lawsuits and massive fines. Know what you can and can't do with late fees, security deposits, bounced checks, pet, etc. 


           Wow thank you very much for the detailed reply! 

          0Reply
        • Henry T.
          Member since 2022 · 1k+ posts · 1k+ votes
          2y

          Personally I don't like Zillow. It's too tenant friendly and doesn't put enough control with the landlord. Especially dangerous in a state like California where landlords have no protections. I haven't used Zillow recently, maybe it's changed,  but I'm still down on it. The first thing you want to do is stop the onslaught of people that aren't qualified. Which means a phone interview first. You can list qualifications all you want, but people refuse to read them.

          2Reply
        • Kevin Kim
          OP
          Member since 2022 · 58 posts · 10 votes
          2y
          Quote from @Henry T.:

          Personally I don't like Zillow. It's too tenant friendly and doesn't put enough control with the landlord. Especially dangerous in a state like California where landlords have no protections. I haven't used Zillow recently, maybe it's changed,  but I'm still down on it. The first thing you want to do is stop the onslaught of people that aren't qualified. Which means a phone interview first. You can list qualifications all you want, but people refuse to read them.

          Thank you for answering! 
          0Reply
        • Cathy B.
          Architect · Portland, OR · Member since 2023 · 66 posts · 39 votes
          2y

          Kevin,

          I use Zillow and I've never had any issues with the rental payment portion of the site.  Only thing I wish that had was a way for me issue a payment back to the tenant.  Currently its one way (only they can pay you)

          Like you, I am now skeptical of the application/background check on there and will likely use something else next time.  Maybe I got lucky in the past?

          Zillow has their own lease, but also allows you to upload your own lease and put in digital signatures where you need them.  I normally print out the zillow lease to make sure I'm not missing anything . . .they try, at least, to update their lease for my area, but I've read where this may not always be the case.  I use a state compliant lease, with a couple of add-on, unit specific policies and make sure I include all of the same attachments as the Zillow one, like the lead disclosure, City required depreciation table, etc.  You are in California so no any lease will do.  Make sure you have one that complies with all of your local laws.

          Overall, Zillow has been fine.  They have some useful tools that can help with comparables for pricing your rental.  It also looks like they are adding a maintenance portion to their site, but I have yet to investigate that.

          1Reply
        • Kevin Kim
          OP
          Member since 2022 · 58 posts · 10 votes
          2y
          Quote from @Cathy B.:

          Kevin,

          I use Zillow and I've never had any issues with the rental payment portion of the site.  Only thing I wish that had was a way for me issue a payment back to the tenant.  Currently its one way (only they can pay you)

          Like you, I am now skeptical of the application/background check on there and will likely use something else next time.  Maybe I got lucky in the past?

          Zillow has their own lease, but also allows you to upload your own lease and put in digital signatures where you need them.  I normally print out the zillow lease to make sure I'm not missing anything . . .they try, at least, to update their lease for my area, but I've read where this may not always be the case.  I use a state compliant lease, with a couple of add-on, unit specific policies and make sure I include all of the same attachments as the Zillow one, like the lead disclosure, City required depreciation table, etc.  You are in California so no any lease will do.  Make sure you have one that complies with all of your local laws.

          Overall, Zillow has been fine.  They have some useful tools that can help with comparables for pricing your rental.  It also looks like they are adding a maintenance portion to their site, but I have yet to investigate that.


           Thank you very much! 

          0Reply
        • Nathan GesnerBusiness Member
          Moderator
          Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
          2y
          Quote from @Kevin Kim:

          I recommend you include some of your key qualification criteria in the advertisement. For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets. Use the top three or four discriminators so applicants can screen themselves.

          Then you need to have clear screening criteria yourself. What's the lowest credit score you will allow? Do you check Landlord references? Do you verify their income? Do you know how to read the credit/criminal background? What if they have collections or judgments?

          Here's a detailed guide on how to screen applicants: https://www.biggerpockets.com/...

          California is the most regulated, litigious corner of the earth and you should work hard to educate yourself as best you can. Consider joining the California Apartment Association for education, forms, advice, and more. 

          The DIY Landlord Book4.7248 Reviews
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          1Reply
        • Kevin Kim
          OP
          Member since 2022 · 58 posts · 10 votes
          2y
          Quote from @Nathan Gesner:
          Quote from @Kevin Kim:

          I recommend you include some of your key qualification criteria in the advertisement. For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets. Use the top three or four discriminators so applicants can screen themselves.

          Then you need to have clear screening criteria yourself. What's the lowest credit score you will allow? Do you check Landlord references? Do you verify their income? Do you know how to read the credit/criminal background? What if they have collections or judgments?

          Here's a detailed guide on how to screen applicants: https://www.biggerpockets.com/...

          California is the most regulated, litigious corner of the earth and you should work hard to educate yourself as best you can. Consider joining the California Apartment Association for education, forms, advice, and more. 


          I will check. Thank you very much!!

          0Reply
        • Kevin Kim
          OP
          Member since 2022 · 58 posts · 10 votes
          2y
          Quote from @Nathan Gesner:
          Quote from @Kevin Kim:

          I recommend you include some of your key qualification criteria in the advertisement. For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets. Use the top three or four discriminators so applicants can screen themselves.

          Then you need to have clear screening criteria yourself. What's the lowest credit score you will allow? Do you check Landlord references? Do you verify their income? Do you know how to read the credit/criminal background? What if they have collections or judgments?

          Here's a detailed guide on how to screen applicants: https://www.biggerpockets.com/...

          California is the most regulated, litigious corner of the earth and you should work hard to educate yourself as best you can. Consider joining the California Apartment Association for education, forms, advice, and more. 


          I will check. Thank you very much!!

          0Reply
        • Colleen F.Pro Member
          Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
          2y

          1. pick a background check that works for you, I don't like zillow, some do. 

          2. You need a release if you are going to call references. You just have them sign that empolyer, and previous landlords can talk to you. Make it a seperate page so that you can send it to the party you are requesting info from and make sure you have their printed name on it. 

          3. Talk to people. If it doesn't seem right it isn't. I had a woman who had 2 kids and then she let slip 3 would be living with her in a one bedroom.  Most people are okay but you will get desperate ones, don't fall for sob stories. 

          4. Electronically, find something that works for you. 

          5. No smoking. Anyone who says they will smoke outside eventually doesn't. No smoking of anything and no growing pot.

          7. Pets do damage if you allow them limit the maximum number to two. Pet collectors in my experience don't make good tenants.  Might be good to meet the dogs.People lie about breeds.  If they are out of control no thanks.  Make sure your insurance doesn't have breed restrictions. If you have no fence I would plan on getting one. I name the allowed pets in a lease just like occupants.

          1Reply
        • Kevin Kim
          OP
          Member since 2022 · 58 posts · 10 votes
          2y
          Quote from @Colleen F.:

          1. pick a background check that works for you, I don't like zillow, some do. 

          2. You need a release if you are going to call references. You just have them sign that empolyer, and previous landlords can talk to you. Make it a seperate page so that you can send it to the party you are requesting info from and make sure you have their printed name on it. 

          3. Talk to people. If it doesn't seem right it isn't. I had a woman who had 2 kids and then she let slip 3 would be living with her in a one bedroom.  Most people are okay but you will get desperate ones, don't fall for sob stories. 

          4. Electronically, find something that works for you. 

          5. No smoking. Anyone who says they will smoke outside eventually doesn't. No smoking of anything and no growing pot.

          7. Pets do damage if you allow them limit the maximum number to two. Pet collectors in my experience don't make good tenants.  Might be good to meet the dogs.People lie about breeds.  If they are out of control no thanks.  Make sure your insurance doesn't have breed restrictions. If you have no fence I would plan on getting one. I name the allowed pets in a lease just like occupants.


           Thank you very much for the information that I haven't think about. 

          0Reply
        • Brandon Carlson
          Real Estate Consultant · Glendora, CA · Member since 2019 · 314 posts · 95 votes
          2y

          rentspree is a good application website you can refer renters to. 

          0Reply
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