Officially a Landlord!

Officially a Landlord!

Investor · Tampa, FL · Member since 2018 · 59 posts · 59 votes

Super excited, officially rented out my first property! It's a single-family home in TX, and the deposit has been paid. Wanted to share some things I learned and that I would implement/do differently next time. Down the road, I'd love to use property management, but I wanted to do this myself the first time to learn and also save some money. 

Listing the Property
1. I had the best luck on Zillow (it's free for your first property) and Facebook marketplace. I also posted on Craigslist and got 0 contacts. 
2. I posted all the information in my FB posts including requirements for renting the house, price, features, link to zillow, etc. I would rather only have qualified people who read my post message me instead of being bombarded by basic stuff. 
3. My criteria for renting the house was the usual.... no evictions, good credit, no criminal background, 3x of monthly rent is the minimum income. Sound past landlord references, sound employer references, and willing to get renter's insurance. I read online that in TX you must clearly state your requirements. 
4. Take great photos. Great photos make a huge difference. My listing was the top on Zillow and I attribute it to great pics. 

Showings
1. Highly recommend scheduling an open house type situation, or, if Covid limits this, have back to back appointments for 15 minutes. No one spent more than 15 minutes at the house. 
2. If someone messages you on Zillow just requesting a showing, email them back something like this: "Thank you for your inquiry and interest in this home. Can you please confirm you have read, understand, and meet the requirements in this listing? We are available for showings Thursday afternoon at 1 or 1:30 pm". You could also not send the times and wait for their response. A lot of people will just not respond because they will then read your requirements and realize they don't qualify. 
3. Make sure the place is nice for showings. We still live here so we just power cleaned it and kept it nice for the showings. Obviously your stuff will still be in the house, but keeping it super tidy makes a difference. 

Application/Lease/Deposit

1. I had my applicants apply through Zillow. It had everything I needed including background and credit checks. This was easy and cheap for the tenants. I ended up with 10 applicants total. 
2. Make sure you call the employers and past landlords. I had some people be super sketchy about this. Some list their friends as the employer. If they are odd or weird about this, consider it a red flag.
3. I had a couple who had great references and outstanding credit. They were really happy when I told them they were selected, I expected them to sign right away. Naive on my part. They ghosted me for 36 hours, finally responded to my follow up saying they decided to move to a different state instead of TX. Next time, I gave the tenant a 24 hour window to sign. You could also tell tenants the leases are sent out to multiple tenants and you'll be signing (binding) the one that is sent back on a first come first serve basis. This might be a little risky for some, but I saw other's saying they do this. Have the tenants sign first then you regardless.
4. Tell tenants before they sign a lease that any deposits are due upon signing. Same day. No wiggle room. 
5. One gray area I came across was denying people based on credit. Apparently you have to send a letter and their report while others say not to do this. I didn't deny anyone solely on credit (ie, they were also evicted or were also not making the required income), so I simply said we are moving forward with other applicants. 

Other
1. People will lie to you! I had some applicants who confirmed they read, understood, and met my criteria, yet when they applied they clearly did not. Simply tell them you have other applicants that meet your criteria. 
2. Be responsive to people. Treat them fairly and with the timeliness you'd expect as well. Also, bee polite but short 
3. Hold firm on your requirements. If you say 3x monthly income, and someone is at 2.5X, don't accept them. This could be discriminatory and you're making the waters muddy for yourself. 
4. Be patient, the right tenants will come. It took me 10 days to rent this home because I was super picky and then my first applicants kinda left me hanging for a day and a half. 

I will say I've listened to several real estate investing books, including rental books, and the BiggerPockets podcast for 2 years. Listening to everything and actually putting it into action is a whole other ball game! Looking forward to getting my next property.

    30Reply
    174 views

    Most Popular Reply

    Member since 2020 · 27 posts · 15 votes
    6y

    Congratulations and what a great, informative post! Love all the lessons learned. Might just bookmark this for when I am in your shoes and becoming a landlord for the first time.

    What's next for you? Actively looking for your next rental or going to sit on this one a while and see how it pans out?

    See this reply in the discussion

    40 Replies

    Jump to latestLatest
    • Burnaby, BC · Member since 2017 · 282 posts · 268 votes
      6y

      Congrats, I've encountered many of the same obstacles in my REI journey.

      My process for finalizing the tenancy is as follows:

      - once properly vetted, I'll ask them to send a fee to cover the credit check (i'll have to check out Zillow's feature it sounds great too). I notify if they pass with no red flags then they will be offered a tenancy agreement to sign off.

      - Once they pass, I set up a time to review the tenancy agreement together so there is a clear understanding of expectations

      - Deposits are expected within 24 hours to make tenancy agreement valid unless otherwise agreed upon. The deadline is due to respect to other applicants who I want to get back to or continue their application process if this tenant doesnt work out

    • Investor · Tampa, FL · Member since 2018 · 59 posts · 59 votes
      6y

      @Jennifer T. thank you 😊

      I did not run across any fake landlords luckily this time! Had someone put their friend as their boss at a major university, it was a red flag to me right away. The internet also makes it really easy to see if someone lied about this!

    • Investor · Tampa, FL · Member since 2018 · 59 posts · 59 votes
      6y

      @James Ma thanks for sharing your process. I like how you word it to the applicants at the end to make it fair to everyone.

      My friend told me about Zillow’s rental management stuff. It was pretty awesome. The applicants pay $29 for the application, credit check, and background check. Their application is then good for 30 days on Zillow for your property or any others where the landlord is accepting Zillow applications. I liked being able to tell them this and say I don’t make any money on this, didn’t have any pushback. 

    • New to Real Estate · Tacoma, WA · Member since 2020 · 7 posts · 0 votes
      6y

      @Amanda Jarrett Congrats on your first rental! Do you have Facebook?

    • Rental Property Investor · Grand Rapids, MI · Member since 2018 · 18 posts · 6 votes
      6y

      @Amanda Jarrett great job! Can you manage my properties too?😂

    • Investor · Tampa, FL · Member since 2018 · 59 posts · 59 votes
      6y

      @Kelvin Vinston I do, but prefer to keep that separate from investing and business stuff

    • Investor · Tampa, FL · Member since 2018 · 59 posts · 59 votes
      6y

      @Nathan Schloff Hey maybe one day! If I generate a large enough portfolio it may make sense to hire employees and manage in house.

    • Houston, TX · Member since 2019 · 39 posts · 13 votes
      6y

      @Amanda Jarrett congratulations!! Reading this really gave me a boost of confidence to buy my first investment property. You have provided an exciteroad map for newbies like me. Thank you Amanda!

    • Rental Property Investor · Jacksonville, FL · Member since 2015 · 342 posts · 142 votes
      6y

      @Amanda Jarrett Hard work pays off! Congratulations!! Let’s get some more!

    • Investor · Tampa, FL · Member since 2018 · 59 posts · 59 votes
      6y

      @Account Closed I'm so glad to hear that! Good luck, keep us all posted!

    • Investor · Tampa, FL · Member since 2018 · 59 posts · 59 votes
      6y

      @Mitchlyn D. Thank you so much, can't wait to get the next one!

    • Denver, CO · Member since 2020 · 112 posts · 95 votes
      6y

      @Amanda Chandler Congratulations! Thanks for sharing this information. I'm quite surprised that this is just your first property. Great work!

    • Lender · United States · Member since 2020 · 1k+ posts · 499 votes
      6y

      You stated it took 10 days to rent your home as if it's a bad thing. That's pretty impressive. Every market is different and of course the higher the price, the harder it is to find a tenant. I know my area, a $2,000/month town home will be listed for roughly 3-4 weeks before finding a tenant.

    • Investor · Tampa, FL · Member since 2018 · 59 posts · 59 votes
      6y

      @Timothy Hero I did not mean it as a bad thing at all. I could have rented it out the day after I listed the property if I wanted to and was not picky with applicants. 

    • Member since 2018 · 4 posts · 1 vote
      6y

      Did you have luck with the FB post? I am not a fan of Face Book yet if it works I may change my stance. As for Craigslist, I haven't heard of anybody using CL in a few years. I think CL is outdated and the people are staying away after the Lifetime movie came out. Good for you and knowing what prerequisites were mandatory. Some people panic after three days and they end up accepting their first applicant even when the person is under-qualified. 

    Join the conversationCreate a free account to reply, vote on answers and follow this thread.