Getting a signed lease
Hey all!
I started advertising for my property 3 days ago and had a showing yesterday and another one lined up for Friday. Just as background info (sorry for the repetition if you read my other post) I had one property manager tell me $1,300 was fair market rent and another tell me $1,700. I personally think $1,300 is too low and $1,700 is too high, so I'm advertising $1,400 for a 2 year lease & $1,500 for a 1 year lease. Water not included.
Since this is my first rodeo, I wanted to get some insight into the proper order of doing things. Here's what I've done so far: (1) someone responds to my add on craigslist and I email them pre-screening questions (name, number, reason for moving, # of people & relationship, intended rental term, occupancy date, smoking, pets, approximate credit score, occupation) (2) they write back and if there aren't any glaring red flags, I call them & ask if they would like a showing (3) have the showing & give them application to fill out.
That's as far as I've gotten so far. The people last night seemed really great and they liked the place, but I haven't received a completed app yet (it has been less than 24 hours). I've also decided on using mysmartmove.com for screenings - they can pay via credit card directly and then it just sends me the report.
Fast forward to *hopefully soon* receiving a completed application and a credit/background check that I'm comfortable with. I guess I would have them come back over to the house, sit down at the dining room table, and get the lease signed? Do I need to explain to them what is stated in the lease and why or just sit back, relax, and see if they have any questions?
Also, how long should showings typically take? Last night seemed to go really fast. It went well, they definitely liked it & were friendly, but it was quick. Like 5-10 minutes.
Sometimes I hate my age, height, hair color, and gender. I feel like they're all rolled up into a quadruple whammy that make people take me less seriously. I still get carded for rated r movies, how is someone supposed to sign a lease with me? That's my insecurity talking, never mind it.
Originally posted by @Lisa Ryan:
The pitbull does have me nervous. Not the dog itself, but the breed and the reputation. I'll require her to pay an additional "restricted breed" fee on top of the regular dog fee in order to carry additional insurance. I think that should be sufficient.
Just wondering how you get "additional insurance" when it's a restricted breed, which means your insurance will not cover anything related to it to begin with, so adding more insurance that won't cover it if something happens doesn't sound like a good plan. I looked for separate insurance to cover if someone has a restricted breed, and although they say policies exist, I couldn't find any, at least in the states where I do business (PA not being one).
There's a separate rider that you can tack onto your insurance that covers restricted breeds.
The rental is within city limits. I have the tax ID number and CAL. I've submitted the App for the rental license which takes 4-6 weeks.
I would recommend against having them over to your house. Lots of people that have companies but not public offices get together at panera, starbucks or even mcdonalds. I would suggest that would be a safer place to have a meeting to sit down and go over the paperwork. Generally if they have rented before they will know what a lease looks like, but it's a safe bet to ask them if they want to go through it with you or just questions. If it's their first rental they may feel more comfortable going over everything. Usually I go over the general sections and anything that isn't necessary standard (repair deductions, etc), then have them look through it and do Q&A.
Showings are usually pretty quick, especially for rentals. It's a lesser financial commitment than buying a house and they know if there are serious pre-existing conditions that (generally) the landlord will take of it.
It's way too much reading in this post for me. So I'm going to post my input short and sweet as possible.
1. U have a place to rent, ppl want/need a place to live. The last thing their worried about is your age. Not saying they won't try u on how nice or what you'll take.
2. If you hold open houses you'll create a buzz to get more people to fill the app out on the spot. I would do showings, then paperwork. Ppl want to look, not commit until they're ready. If you send a questionare b4 viewing it's a turn off.
3. Use Craigslist and zillow for rental comps.
4. I wouldn't show the place until it's rent ready with your stuff out.
Originally posted by @Lisa Ryan:This family is black so that should make fair housing claims in the future easier, but I understand what you're saying.
My understanding is that he was married & lived with her, then got separated and moved out, she got evicted. I'll ask him to clarify more. Did he leave her high and dry, knowing she couldn't pay the rent alone? Did she tell him she could handle it and then never told him she was getting evicted?
We'll see what the reports turn up.
The only people who get reported on an eviction are people on the lease. So, this guy was on the lease. Both people on a lease are jointly and severally liable for the rent. He does not get to bail and not pay the rent, no matter what.
It would be the same thing if they were roommates, and one roommate moved out. They're both liable for the contract. The court found him liable, and he's saying he ain't payin' that bill cuz he wasn't living there anymore. Sorry, but that ain't the way a contract works.
Any of the details of whether or not she said she could pay the rent, or he left her high and dry - don't matter. The guy was on a contract that made him responsible for the rent. That contract was breached, and he has to pay up.
And as far as it being okay with fair housing - my point was that if you bend the rules now for anybody - black, white, gay, Section 8, Asian, Native American, huge family, whatever - and you decide you want to go back to your original criteria - you might not be able to.
Because now, if you accept an eviction for anybody, you then have to accept an eviction for the next person who comes along - or they can cry a fair housing discrimination for whatever class they happen to be in - that was different from the one you previously accepted.
If you always stick to your criteria, then no protected class can claim that you have different rules for them, than you had for someone else.
And my daughter had a pit bull that caused thousands of dollars of damage to her own property. Fences, siding on the house. Sweet dog, but extremely destructive. It's very possible that any deposit you could collect would not be enough money to cover the damage. Why take the chance?
I'm worried about you. I just hate to see your home get trashed or you lose a bunch of money. The best way to keep your investment and your bank account safe - is with rock solid criteria. Better for it to take a little longer to find a better tenant.
Okay, Auntie Sue will quit haranguing you now. I honestly hope all goes fantastically for you :-)