Hey guys! I am about to have my first renter, what are some do's and don't that you would recommend? Any advice is welcome!
Gross Income about 2.5 to 3 times Rent verifiable with Paystubs or past 2 yrs or tax returns if self employed.
No Evictions in past 7 yrs.
No Criminal Record
Good Landlord References.
Credit Score over 600
Completely filled application.
Willingness to provide security deposit. I usually charge 1 full month's rent. By law I can charge up to 2 month's rent in VA. You need to know laws specific to your state.
I would highly advise using software like SmartMove, which pretty much does most of it for you, and gives you a renter score.
Hey guys! I am about to have my first renter, what are some do's and don't that you would recommend? Any advice is welcome!
Gross Income about 2.5 to 3 times Rent verifiable with Paystubs or past 2 yrs or tax returns if self employed.
No Evictions in past 7 yrs.
No Criminal Record
Good Landlord References.
Credit Score over 600
Completely filled application.
Willingness to provide security deposit. I usually charge 1 full month's rent. By law I can charge up to 2 month's rent in VA. You need to know laws specific to your state.
I would highly advise using software like SmartMove, which pretty much does most of it for you, and gives you a renter score.
Hey guys! I am about to have my first renter, what are some do's and don't that you would recommend? Any advice is welcome!
Gross Income about 2.5 to 3 times Rent verifiable with Paystubs or past 2 yrs or tax returns if self employed.
No Evictions in past 7 yrs.
No Criminal Record
Good Landlord References.
Credit Score over 600
Completely filled application.
Willingness to provide security deposit. I usually charge 1 full month's rent. By law I can charge up to 2 month's rent in VA. You need to know laws specific to your state.
I would highly advise using software like SmartMove, which pretty much does most of it for you, and gives you a renter score.
Second, like everyone else has stated, screen your tenants. Late payments, evictions, bad credit score are all indicators. Also, make sure you do a background check, not only for knowing who is in your house, but also for the neighbors in the community.
This might be just an issue I've run into more so than others, but my next lease agreement is going to have a "lease break penalty". Something to consider! (Totally understand that this is not so much as background check, but...)
I use cozy.co to collect rent and screen tenants. The reports are good enough to understand who the tenant is, in my opinion. Full disclosure, I've used property managers in the past so I have nothing to base it on.
Here's the screening matrix my PM in Charleston SC posts on their website. Among other things, it does a great job with expectation management from the git-go with prospective tenants. This holistic screening has really improved the quality of tenants they've put in my properties, and has also helped reduce turnover dramatically
These days I ask for first month, last month and security dep up front (3x the rent) and I've not had a tenant skip out on the lease since I started that policy. It does eliminate a lot of tenants but I still get my places rented and they're usually good tenants. Occasionally, I'll let a tenant I really like pay that last month's rent over the course of the first 3 months or so.
Use a third party service. The last thing you want is liability related to the use, misuse or theft of confidential data. Dont’ let this get overly complicated. AT the same time, if the Tenant doesn’t clear don’t even consider taking them. Good luck
I highly recommend using a 3rd party for background screening and credit checks. We use Cozy.co for rent collection and screenings. Free of charge for both parties unless tenant pays with a credit/debit card, link a checking account and all is FREE.
Income must be 3x monthly rent
No evictions
No pedophiles
Dont assume that if you follow all these suggestions that you will have the best tenant, people suck and in the end you may be forced to remove them from the house.