Process of renting out my first investment property

Process of renting out my first investment property

Member since 2024 · 8 posts · 3 votes

I am new investor and have one investment property. Its a single family house in dallas. I want to put it out for rent and bit nervous about the process. I want to give it a try to find a tenant myself. I have few questions about the process. I apologize ahead for the long post.

1. After posting on the zillow, do I show the property to only those tenants whose credit/criminal and other background checks out? or show the property to interested tenants and ask them to apply if they meet the criteria?

2. Does anyone has a checklist that they can share to talk to potential tenant before asking them to apply?

My list includes - last 2 years employment history and current employment [2 paystubs], criminal checks, eviction checks, No Pets, No smoking, tenant pays utilities, maintains landscape, no subleasing, bring own washer & dryer, 1 month security deposit and transfer of utilities before moving in, rental insurance, all occupants will be on lease, notice period of 2 months for termination, tenant references, No cosigners, no painting walls, late fee notice, any hoa fines should be paid by tenant, inspection of property at 3, 9 and 12 months.

Please let me know if I am missing anything.

3. Any other clues or observations to make to understand if the tenant is good?

4. Does zillow do all the required background checks for tenant screening or should I also look for any additional options?

5. If the tenant has a support animal, how to verify the validity of it?

6. If the prospective tenant has a realtor/agent, do I need to pay them?

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Quote from @Raghavendra Jakkani:

I agree with Greg. Self-management is a good thing, as long as you have the skill set and knowledge to do it properly. Consider hiring a property manager for the first year or two, then transition to self-management when you have more experience.

Hiring a property manager is usually cheaper than losing a ton of money making rookie mistakes.

The DIY Landlord Book4.7243 Reviews
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  • Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    2y

    #1 Start with the Texas Property Code regarding leases.   That doesnt answer most of these questions, but will be a start for you.

    My thought...hire a PM for the first one.  Let them show you the ropes.  This is an expense you want today, that will save you a ton of time, money, mistakes, frustrations later.

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

    I agree with Greg. Self-management is a good thing, as long as you have the skill set and knowledge to do it properly. Consider hiring a property manager for the first year or two, then transition to self-management when you have more experience.

    Hiring a property manager is usually cheaper than losing a ton of money making rookie mistakes.

    The DIY Landlord Book4.7243 Reviews
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Raghavendra Jakkani 

    1) This depends on market conditions.
    - If you are NOT getting a lot of inquiries & showings, you do NOT want to add roadblocks!
    - On the other hand, if you are getting more inquires than you can respond to, raise the price AND the requirements for showings.

    2) When are you looking to move? WHY are not renewing your current lease, other than the lease is up? What's your current rent? How many people moving in? Number of pets & types?

    You are confusing screening questions with lease requirements.

    Logical Property Management4.9464 Reviews
  • Real Estate Agent · Dallas - Fort Worth Metroplex · Member since 2020 · 66 posts · 57 votes
    2y

    @Raghavendra Jakkani

    1. I'd recommend doing an upfront screening prior to showing the property. One thing you can do to help is doing a video walkthrough, provide a floorplan scan, or a 3D walkthrough (matterport) of the house. This way, the tenants can see the house prior to applying.

    2. Send me a DM and I'll send you my pre screening form I have them fill out. It asks them a bunch of questions so I can know whether or not they should even bother spending the money to apply. I use go4rent when screening, they will take care of background check, checking for employment history, and landlord history.

    3. Stick to the basics. Credit above 600, 3X the rent in income, no evictions, clean background check.

    4. Go4rent

    5. They'll have paperwork.

    6. If you're not using an agent to list it on MLS you most likely won't encounter another agent.

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