My first Rental Property and i am lost....

Member since 2019 · 1 post · 0 votes

I bought a new house this year and want to turn my old house into a rental property. I have renovated the house and ready to be rented except, I don't know what to do now. who do I contact about writing the contract? I am an IT guy and fairly skilled when it comes to creating a solution through the internet and I was thinking to create a website where possible tenants can fill out an application online that way I can choose the best tenant but I don't know what questions I am legally inclined to ask when it comes to that application. can I ask where they work or how much they make which from my point of view it is critical?

Is this something that normal landlords do or am I going through a newbie phase?

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

There are software solutions available for Landlords. Applications can be filled out online, you can run a credit/criminal background screening, you can market your properties through tons of web sites with the push of a button, you can collect and track rent, you can track maintenance, etc.

Cozy.co and TenantCloud are two of many options. They are free to you with very inexpensive upgrades for certain features like online payments.

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Jonathan Taylor SmithBusiness Member
Rental Property Investor · Durham / Raleigh (Triangle), NC · Member since 2015 · 840 posts · 801 votes
7y
@Jason Law - 20 years ago (maybe even 10), you would have needed to handle and create everything you mentioned yourself; however, all the tools you need have long since been created by others - and many are FREE. I'm also an IT guy, but I'm thinking your time is better used in other endeavors (I know mine is), so just use what's already out there.
BiggerPockets has state specific leases you can use. Try Cozy.co for listing your property for rent, taking applications, plus accepting rent payments and getting maintenance requests. A quick Google search will return endless other options.
But your most important task will be to educate yourself... Grab a book or two. If you prefer to listen, get a subscription to Audible.com and download some books on property management (the one from BP is great) and your first book is FREE.
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Alan Pederson
Investor · Kennedale, TX · Member since 2016 · 219 posts · 349 votes
7y
I bought a cd at staples that had all of the paperwork I needed on it. Applications, lease, move in checklist, etc... You can also edit the documents. It was like $20. I print out about 20 applications and include a sheet that shows a picture of the house and some details about it just like realtors do when they put a house up for sale. Price, room sizes, any new appliances, updates, etc...
I also signed up with Cozy and posted pictures. I haven't had much luck getting responses using that service so I have resorted to more creative ways to market my rentals. The first house I bought backs up to a busy street. I got on bannersonthecheap.com and purchased a 3'x5' vinyl banner that says For Rent, the house size, 3-2-2, and my phone number. I placed the banner on the back fence and started getting 5-7 calls a day. I made a separate banner for each house. Do not put a price on it because rents will change over time and there's no need to have a new banner made every time. When people call, I direct them to realtor.com where they can see photos of the house and read details about the house. If they're interested, I tell them to call or text me back.
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Alan Pederson
Investor · Kennedale, TX · Member since 2016 · 219 posts · 349 votes
7y
As far as questions to ask. I have a minimum income that they will have to make to qualify so I ask them their income (combined if a couple), they must show paycheck stubs to prove income, I ask them about kids, pets, vehicles, tell them what the rent and deposit is, they most provide a credit report, and I tell them I do a criminal and eviction check as well. There is also an application fee and I will be calling their employer and other references that are on their application to verify employment and calling previous landlords to see how things went when they lived there. Are you going to allow pets? What about aquariums or hot tubs? Do they have to take care of the lawn? You need to decide what kind of tenant you want and write it down on paper so when someone does call, you have it handy to answer their questions. If you have the same criteria for everyone, their is no reason someone should accuse you of discriminating against them. I also tell them what I expect from them and what they can expect from me. I expect them to keep things neat and clean. If something needs to be repaired I expect them to promptly contact me so I can get it fixed. I take good care of my properties and tenants so both will be around as long as possible.
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Jason Duryea
Greenville, SC · Member since 2018 · 32 posts · 18 votes
7y
@Alan Pederson Cozy only affiliates with Realtor and one other site. You probably get more interest if you post to other sites like Zillow and apartments.com as well. I don’t give out the link to Cozy until I’ve pre-screened the person, otherwise you’ll likely get a bunch applicants that are unqualified and waste their money and your time.
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Patricia Steiner
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
7y
Do yourself a favor and don't do anything until you have the following in place:
1. A good understanding of Landlord/Tenant Rights in your state (available online from your state Bar Association).
2. A solid contract (BiggerPockets has a site for it) - but also with Addenda. Will you allow pets? Are you providing a washer/dryer? What if the tenant overloads the washer and floods the house? Are you requiring the tenant to have Renter's Insurance with landlord as additional insured? I wouldn't do it without it. What about pets? Where will you hold the deposit? Fun, huh?
3. How will rent be paid to you? Late fee? Will you take a check? How should repair/maintenance requests be submitted to you? Can they call you? (Short answer: no!). You'll need a strong process in place.
4. Renting. It's a cheap date with a realtor - usually less than $200. And, there are tons of online sites as well. But how will you screen prospective tenants? Most of my clients have engaged a screening company to do local, state, and national background screenings. What kind of ID will you require?
Having a rental property ready to go is great...but it's just the beginning. There's a lot written on this topic on BiggerPockets. I have a process that I use with my investor clients to ensure that we've covered all the bases and we avoid all the drama that occurs when you don't.
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Brandon Ellis
Member since 2018 · 44 posts · 6 votes
7y
Was speaking with an investor last night who was managing his own properties. He absolutely loved Cozy because messages were automated if a tenant didn't pay. Also Tenants can submit tickets if something broke.
Something you will want to do if this is to be a rental property is to setup an LLC (limited liability company). You can setup an LLC online or get a law firm to do it. I got a quote here locally for about $500 to get an LLC created but you can do it for less. Purpose for an LLC is to protect yourself legally in case someone injures themselves on the property. Think of LLCs like logical(legal) partitions on a hard drive. What happens in the partition stays in the partition (or at least it's supposed to).
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Niels Bjørn Toppenberg
Denmark · Member since 2018 · 90 posts · 56 votes
7y
@Jason Law
Congratulations on the purchase!
Don't know that much about the sites suggested, but I would recommend you read Brandon Turners book on Property Management. It's really helpful and explains alot about what you can and cannot ask potential tenants.
best of luck!
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
There are software solutions available for Landlords. Applications can be filled out online, you can run a credit/criminal background screening, you can market your properties through tons of web sites with the push of a button, you can collect and track rent, you can track maintenance, etc.
Cozy.co and TenantCloud are two of many options. They are free to you with very inexpensive upgrades for certain features like online payments.
The DIY Landlord Book4.7248 Reviews
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Jim Cummings
Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
7y
@Jason Law. I would suggest you engage the services of a REALTOR to assist you in getting the property leased. If you need Property Management Services, the Agent will assist you in locating a suitable PM.
Good Luck!
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