Process of Renting a Property from Day 1 to Tenant Move-in?

Question

I have recently been given the opportunity by my father-in-law to manage a rental property. He is having trouble selling the property and wants to have his mortgage payment paid for, anything above and beyond his payments will be mine to keep which should be around $100ish a month.

I just put out the 'For Rent' sign in the yard. Now what?

What should I be prepared for when potential tenants start calling?

What is the process?

Thanks for your help.

I just put out the 'For Rent' sign in the yard.  Now what?

What should I be prepared for when potential tenants start calling?

What is the process?

Thanks for your help.

Steve Babiak · Answer

These two links should give you an idea of a process to follow, very similar to stuff posted above:

goes to the specific post within a thread that lists the process:
http://www.thelpa.com/lpa/forum-thread/213573/Deposit-to-hold-apt-without-a-copy-of-the-lease.html

shows the whole thread:
http://www.thelpa.com/lpa/forum-thread/213570/Deposit-to-hold-apt-without-a-copy-of-the-lease.html

Steve Babiak · Answer

Yes the lead disclosure is for pre-1978 construction; the reason you do this is to comply with Federal laws (even though it may make you feel like you reduce liability also).

I would only allow a licensed agent to have the code for any lockbox that is on a property - I would not give that code to just anybody who just observes the sign on the street.  There are many renters out there who have all sorts of serious blemishes (derogatory items) in their backgrounds, including criminal convictions.

Dave M. · Answer

Listing your cell sends a message to good tenants that the property is personally managed and you are accessible, this can be a great marketing advantage.  Good tenants will not take advantage of that accessibility because they will want to maintain it.

On the other hand, you can often screen out many bad tenants for these same reasons.

The more thorough you are in your initial discussion and meeting with prospective tenants the better.  Treat it like a job interview...ask questions like:  Where do you live now, how long have you been there and why are you looking to move?

Joe Delia · Answer

I wouldn't get an office max lease or anything of the nature.  Your father in law needs to invest in getting an experienced real estate lawyer to draft a lease.  It's the LIFEBLOOD of the property.  A professional tenant will eat some garbage lease alive making you wish you paid the whatever to get it made versus the damage and lost rents and time.  A lease isn't something to do on the cheap.

Ken Latchers · Answer

Craigslist is the main place to advertise.  If you are going to landlord, familiarize with this.  If the unit is in KC, go this this exact site:

http://kansascity.craigslist.org/apa/

Go to POST in upper right

I am offering housing

apts/housing for rent

fill in monthly rent, #BR and other stuff.  I suggest you read a few other ads in that link to see what they say

After done, you will continue.  May need phone# and/or email approval - they do this to keep out spammers

David Robertson · Answer

Rent will be $700 a month...his mortgage payment is $590, leaving $110 a month.

I put my cell phone # on the sign :( and I have already received 1 call in the first hour of the sign being posted...

I have some lease agreement templates so far, but I have not really looked through the details.

Greg, thanks for the step by step process.  I am assuming the lead disclosures need to be provided on houses built before 1978 and these are just to have the renter acknowledge that lead may be present and they understand the risks to limit my liability?

For tenant screening, how do I prescreen out the tire kickers?  What questions should I be asking them when I receive a call?

Should I request that they fillout a tenant screening application online through transunion or similar before I show them the property so I don't waste my time walking them through the house if they don't qualify?

Greg B. · Answer

I hope this works out for you David Robertson.

You are going to need an application for them to fill out.  Then you are going to need any lead disclosures and a blank rental or lease agreement to sign.

You will need to develop a way to screen the tire kickers out so you aren't wasting your time.  You also need to be able to weed out the unqualified applicants quickly.

The process:
1. Talk to applicant, this is a prescreen to see if they may qualify
2. If they sound reasonable, meet them at property for showing.  Bring blank application with you.
3.  If all goes well they fill out app on the spot and pay you application fee.
4.  You do the background checks
5.  You accept their application and agree to meet them to sign the lease.  You set the tone of the meeting and clearly state your expectations, reiterating crucial points in the lease.  You accept their deposit and rent.
6.  You both perform a before move in inspection, noting anything that needs improved or repaired.  Hopefully this is nothing to you.
7.  Take lots of before move in pics and vids.
8.  You give them the keys and let them move in .

Good luck

Vincent D. · Answer

lots there David.  a couple spontaneous, reflexive thoughts and prompts for you:

what's the going rent for your inventory?  is it enough to cover the underlying debt service (if not, your f-i-l handed you a grenade)?

what phone number is on your sign?  if your celly, you might expect odd-hour calls and lots of tire kicking.

If the neighborhood is decent, you may consider hanging a lockbox on the front door and giving it to prospects who pass the "sniff test" over the phone, asking them to call with feedback when they leave and ensure that they replaced the key in the lockbox.

What will you use for lease doc?  If you presently have nothing, you'll likely find one online to serve the purpose, or perhaps Office Max, etc.

MOST IMPORTANTLY, do not sway from demanding full first month rent up front AND matching security deposit.  This is your best screening tool.  I've had many tenants pass the full, expensive research screening process only to default after a couple months, and I've had unscreened tenants pay reliably for years.  it's a crapshoot, but CASH UP FRONT is the best risk mitigant.  Don't let someone talk you into staggered SD payments or any compromise of this all-important standard.

Let me know if you have any particular, specific questions as you drive further into the process.

Peace,

Process of Renting a Property from Day 1 to Tenant Move-in?

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