First Time Landlord Needs Advice

New Orleans, LA · Member since 2015 · 9 posts · 6 votes

We are about to endeavor in the landlord world. We just listed our property for rent on Monday and have a lady coming to look at our home tomorrow evening. Is there anything I need to do to prepare for her visit?

She talked about wanting to do an 18 month lease or longer. Do we charge a little less if she signs a 18 month or 2 year lease? I was thinking we would take $50 off our asking price of $1600/month if she signs a two year lease.

Also, she wants to rent our home a month before we listed it available (December instead of January). I don't want to say no, but we really wanted to spend the holidays in our home. This just comes down to what is best for our family, but we also want the right tenant. Pretty torn here, as we are moving across the country and will be our last holidays in our home.

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Ray Harrell

Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes

Biggest thing to remember, DO NOT come off too friendly, even if the tenant seems super nice and friendly. This is a BUSINESS transaction. Do not agree to make any changes to the place to accommodate the tenant. Quickly get rid of any emotional attachment to the property. Decisions based on emotion and not business logic will cause you to make mistakes every time. It's INCOME PROPERTY, not a primary residence.

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Brian BertschiPro Member
Rental Property Investor · St. Louis, MO · Member since 2018 · 28 posts · 3 votes
8y
@Bjorn Ahlblad I am new to BP and to investing in real estate as well. A friend of mine who has a handful of properties told me to schedule every 3 months to change the furnace filter. That way you can check up on the property. I don’t know if any of you have done that but I thought it was a pretty good idea.
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Sergio Aguinaga
Detroit, MI · Member since 2018 · 148 posts · 38 votes
8y
@Brenna Wood honestly, just read the book on managing rental properties by Brandon and his wife. It’ll tell you what’s a red flag, what to do, how to do it, how to screen and pre-screen, etc. The minimum requirements for example are: 3x rental income Good references from past landlords Current landlord reference may be inaccurate so use the others to better judge Check income by calling manager and verifying job stability, etc. Credit score of 600+ pass background check Depending on your requirement, but no smoking is a good idea. Check them out on social media, understand their personality. Check their car to see how clean it is. A demanding landlord or one trying to move in earlier than you can Isnt a good idea. There’s honestly a lot when it comes to landlording. I’m putting my first rental up in 2 weeks so I had to make sure I read the book to learn a good process to follow. Since you plan to rent it out in December/January, you have more than enough time to read through most of it.
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Sergio Aguinaga
Detroit, MI · Member since 2018 · 148 posts · 38 votes
8y
@Brenna Wood offer her an invitation to apply if she so wishes just so she won’t feel discriminated. Once she applies and actually pays background and credit check, you can send a denial letter of why she was denied. Most likely she won’t apply anyways but you don’t want to be a victim of being sued.
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Kenneth Blacow
Peachtree City, GA · Member since 2016 · 41 posts · 17 votes
8y
@Brenna Wood All the advice offered here is solid. I want to second what @Sergio Aguinaga said, read @Brandon Tur
@Brandon Turner's book it was full of perfect advice. You can even get it in Audible if you are like me and don't like to read.
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Michael Boyer
Investor · Juneau, AK · Member since 2015 · 980 posts · 741 votes
8y
Congrats on your landlord journey!
I would second much of the specific advice given and would just generally add that getting a book or two on landlording (or creating your own reading list by browsing many of the blogs, forums and podcasts on BP) might be a good introductory education on landlording.
Being a landlord is one of those undertakings where an ounce of prevention is worth a pound (ok, a ton) of cure.
For example, if you can prevent the nightmare tenant, you avoid--well-- nightmares (like real ones, where you lose sleep or wake up worried how the eviction will play out or toss and turn wondering if the non-paying tenants are trashing your place; you drift off imagining them doing nefarious things under dim lamps with bunson burners and beakers amid a pile of trash surrounded by half feral pit bulls resting on dirty mattresses)...
Some basic, low cost landlord self study will help you sleep soundly and get a check in the mail (or in your account electronically) every month....
Even the classic Landlording by Leigh Robinson is in most libraries (free) or used bookstores for a couple of bucks.
Best of luck!
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Steve B.
Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
8y
@Brenna Wood I don’t like the extended family moving in pLAN either. I have very little problems landlording despite @Jay Hinrichs admonishments that I should be the bank and not a landlord. The main secret to my minor success is thourough screening devoid of cARING ABOUT the tenants life stories or likability. I keep my rents slightly below market to attract these tenants. 87.2% of BP “tenant from hell” post have their basis in bad or missing screening.
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Ned J.Pro Member
Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
8y
When people state that they don't want me to call their current landlord because they don't want to show their cards until they have something lined up....... ok...... then I need to contact your 2 previous landlords.
The current landlord reference can be an issue anyway...... the tenant may be a huge PITA and the LL wants them gone anyway...... they may give a glowing review or hold back the truth just to get rid of them. You have to take the reference with a grain of salt. The previous LL have zero skin in the game and will often be more reliable.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Steve B.:
@Brenna Wood I don’t like the extended family moving in pLAN either. I have very little problems landlording despite @Jay Hinrichs admonishments that I should be the bank and not a landlord. The main secret to my minor success is thourough screening devoid of cARING ABOUT the tenants life stories or likability. I keep my rents slightly below market to attract these tenants. 87.2% of BP “tenant from hell” post have their basis in bad or missing screening.
you also have a very solid renter base in the PDX metro area.. it differs wildly when you head out east believe me.
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Michael S.
Huntsville, AL · Member since 2018 · 577 posts · 864 votes
8y
This is a major reason why we use a property manager for our properties. One thing no one has mentioned in this thread is the value of the time you are spending on this exercise. Already, it sounds like hours, and you're not close to being done yet. 10% of the monthly rent is WAY less valuable to me then the amount of time I am saving not having to review applications, show the house, call the plumber, etc. Something to definitely consider moving forward.
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Steve B.
Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
8y
@Jay Hinrichs I defiantly agree with you, it’s pretty easy in Portland but not as easy as three years ago. I’ve also been lucky. However I can’t see most of these terrible tenants bemoaned in these forums passing a basic credit check.
I’m also guessing that when the applicant said “my credit score is not high” she meant it’s below 600 and downright terrible
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