Got my duplex yes!... Now what??
Virginia Beach, VA · Member since 2015 · 13 posts · 4 votes
I got the duplex I even have a quick response from my craigslist post. Then reality strikes. I'm clueless.
How much of a deposit?
Do I charge a application fee so i can cover cost of screening? How much?
Is there some legal "no no's" outside of common sense that I should be aware ofl, that are easy to make? Any words of wisdom or direction is appreciated
You need to read up and understand your local landlord laws now. Don't wait any longer. Google it and many times you can find it on a state/county website. Go to local landlord/REIA groups and learn there.
Stick to your lease. Do you have a lease? Draw one up now. A strong one...that reflects your local laws. Yes, security deposits are typically equal to one month rent. Stick to application standards such as minimum of 3X the rent earned in *gross* income.
Don't make promises to tenants. Don't be friends with tenants. Don't believe tenants when they say "i'll pay rent in a couple of days." File for eviction the very day it's late. Many times with non-paying renters, filing for eviction/starting eviction process is your only insurance to get your money. Magically they have the money once they see you're serious.
Oh, and only accept cash or money order when an applicant pays first month rent and sec deposit. They don't sign the lease until you count that cash. A personal check could bounce, so never accept those on lease-signing day.
Common sense is great, but you really need to know your local landlord laws. You should have been reading up on that before you even closed on this property. :-)
Get started, Mr. Landlord!!
Hey, I wonder if we're related? My husband is an Arata from California. Anyway, welcome to the adventure of landlording! In fact, a book you should order from Amazon is "landlording" by Leigh Robinson.
Since you are the owner/occupant of the building, it is legal to discriminate under federal law (not sure about your state). Of course, it's not nice to discriminate and I don't recommend it, but you don't have to worry about being falsely accused as much as other landlords do.
My best advice for tenant screening is to use the credit report to make sure they told the truth on the application about previous addresses. You want to call previous (not current) landlords for references. Match the landlord to the address and if they skipped one, that's a red flag. If it's been a long time and the landlord can't remember the person, it's not a big deal. We seem to only remember the names of the terrible ones! I can think of at least 4 times when this has saved me from renting to a tenant who would have been a nightmare.
Enjoy your new home!
That's funny @Amy. I have a California address that I never been to, keep showing up on background/credit checks is your husband named Joey also by chance lol.
I was going to use a 3rd part service. Will they call previous landlords or just pull records?
I would recommend calling yourself. It is always a good practice to gather that part of the information yourself. This way you can ask what you want and get the answers you are looking for. You can even ask some follow up questions to some answers you might not like.
Thanks @Tucker Smith. Alot of great links. I got alot of homework ahead of me. Do you have any personal experience with iscscreening.com. i want a thorough check. Was considering TransUnion service SmartMove, but not sure which easy to go. So many options my head is spending. I'm getting alot of interest. Which gets me thinking. If I have multiple qualified applicants, (not a bad think) what criteria should I consider to narrow it down to one?
Hi Joey,
I have actually spoken with the founder of ISCscreening multiple times, and they are the real deal. They actually call local court houses to pull records and verify their initial soft check. My company has used them a fair amount, and have not had any problems thus far. That being said, I don't think your decision about which company you use will make or break you as long as you go with a company with a good service record.
You can set your qualification standards (credit score, minimum monthly income, etc.), but once you set them in stone you are obligated by law to select the first qualified application you receive as per the fair housing laws. You cannot even discriminate against the applicant's source of income. My suggestion is to pick standards that you are comfortable with so that you can confidently accept applications from anyone who meets them.
Hope this helps!