All Forum Posts by: Pam Storm

Excellent thread and suggestions.  Good stuff.  I want to add, if you are uncomfortable saying no or charging for the screening some metrics that might help.  These are based on helping apartments screen over 16 million applicants since 06 - so obviously your property, traffic, locale etc weigh in.. but broadly speaking, nationally, over time:

- a 20% decline rate is about the average, with 2-3% eviction  hits, 8-9% criminal hits, and the rest being credit criteria.  So quite a few applicants expect to be declined or need an extra security deposit

- absolutely document your criteria before reviewing applications for 3 reasons:  1.  to stay compliant 2.  take the emotion out of it  3.  find the best applicants (not in order)

- pretend like you cannot make exceptions, like you have a Regional Manager that you'll have to explain this case to... would it still make sense?

Good luck and great shares above

A great tenant does pretty much help with everything else..the finances, ease of managing the property, less stress, good neighbors, referrals etc

On my first rental - the one thing I would have done differently is charged more.  I was insecure and nervous, did nominal rental research.  In this good market:

- find a good application, think through your screening criteria before you take applications (take the emotion out), start your asking rent a little higher than you think you can

- do a thorough background screen! 

- use a solid lease

Good luck!  

Congrats @Sydney Hall and @Corvaughn Archie for getting started.  It's thrilling and overwhelming, hang in there.  I like the BP advice to study deals, study 5 a day and at the end of a month you'll have some great experience and knowledge to go from there.  

I echo Kevin's remarks above, 3x rent is typical, going down to 2x in lower-end areas.  Yes, you should have all adults sign the lease and then run background on all those on the lease.  You can combine applicants' income by running co-applicants (typically husband/wife/life partner) and returning one combined background recommendation.  

Always background check the co-signer.  Any co-signer who doesn't have a background check run on him/her would be surprised...they are the guarantor and must be run as a typical (non-student) applicant would be run.  

I think it really depends on (a) the network of contractors you can put into place (b) the quality of your property and (c) the quality of your tenant.  

I have a rental around the street for the same reasons you were thinking of.  But I never have to go there - it could just as well be across town or in another state if I had the network set up and a solid property.

Congrats on your first property!  That's a great milestone.  Rocketlawyer may suffice, I have used them for other legal forms (not leases).  I think their customer support and pricing is solid.  Not sure of your timing - if not imminent - my company, Rent Marketplace will have state-specific leases beginning of June (integrated with online application and screening).  

Absolutely, you can do that.  What you cannot do is change your rules for one property based on the applicants you see come through... I've run tenant screening companies for years, let me know if you have any other questions... 

Hi Jacob

Welcome to real estate investing!  I caught the bug too, while running the country's largest tenant screening companies.  

Good tips above and a question:  why do you want to work with a property management company?  Are there specific reasons or are you assuming you need to?

I manage our own properties (after serving multi-family clients for years I knew I could).  Been pretty easy.  Lastly, please allow a shameless plug for Rent Marketplace, I founded it, for folks like you and me.  Free software, pay as you go for screening and the like (or have your applicants pay).  Buildium and the others are great, this is more economical for someone who has < 20 properties or so...

Good luck and let me know if I can help in any way.

Fun thread.  I see a variety of responses, and looks like most are bucketing "landlord friendly" as 1. relatively easy to evict  2.  Lack of onerous, complicated laws.  What other characteristics are you all thinking of in terms of 'friendly' or 'un-friendly'?  Thanks!