First time LANDLORD in NJ needs a little guidance

[Christopher Veljkovic]

I am purchasing a duplex as a first time landlord in northern NJ. I will be house hacking however the other unit will be vacant upon purchase. I would like to be prepared from the first day of purchase so here are my questions and concerns if anyone can weigh in! 1. What do you use as a platform to showcase your unit? ie Craigslist, hot pads? 2. What does your lease in include? Beside the basics! I purchased the lease package off of BP specific for NJ. However, there are specifics I would like to include in the lease that I have learned throughout the podcast of other landlords such putting specific paint code on the lease so tenant would paint prior to leaving. There are other examples but just would like your thoughts. 3. Screening the tenant process. Do you use the BP endorsement or do you have another recommendation? I know I’m missing something. Any input would be great! Thank you!! BP COMMUNITY!!!

[Chris Sellers]

Christopher,

Congratulations on the duplex!  This is how I got started too, great experience.  I switched over to professional management a few years ago, but used to manage my own up until I acquired too many to manage and work full time.

1) Search the common ones in your area / price range and use the most popular.  Hotpads and Homes.com are good here.  I'd be weary of Craigslist, a lot of traffic but less quality.  Don't forget a yard sign.

2)  Be clear for which day the rent is late, how the rent will be paid and the late charges.  Use your state's maximum in your lease and stick to it (e.g. late of the 5th of month, late fee of $70).  Also, be specific on pets (e.g. no pets, pet charges or size limits) and number of cars allowed.  I like to not allow any alterations, including paint, unless getting written permission from landlord.  Also like requiring maintenance requests in writing.  This way it's clear if you keep a deposit for them painting a wall purple that you didn't give verbal permission and if they complain in eviction court you never repaired anything, there will be a paper trail (or lack thereof).  

3) I signed up with a credit agency to check their credit, looked them up in the police websites for towns they lived it.  I called ex landlords to verify behavior and current employer to verify income.  Be sure to get them to sign a release for the credit and employer checks.    

Most important is the interview.  Good renters have situations and stories without holes that make sense.  Trust your gut.  If you hear inconsistencies or outrageous situations, pass on them.

Work on finding the right balance between providing value to your customer and being a firm landlord.  When in doubt, sticking to the lease is better than being a nice guy.

Good Luck!