All Forum Posts by: Penny Clark

Im a property manager and I always encourage people to see the place first before paying the nonrefundable fee.

However, our market in Sacramento is so competitive for rentals, I've had applicants pay the fee anyway just to get an edge over the competition. 

You may consider using a third party screening service like Cozy or SmartMove where applicant pays fee direct to them. Once the applicant views the property, tell them what rental criteria is on a written sheet. Rental apps are not first come first serve but rather first come first qualified.

Screening an applicant for verifying income, rental history and analyzing their credit report shows you are a serious landlord and will keep you from looking like a sucker to professional tenants on wheels.

Best of luck to you!

Hi Luke,

If they don't have tax return for this business venture, surely, they can show regular deposits from six months worth of bank statements.

I would also protect yourself by charging a double security deposit and putting them on a month to month agreement in case it turns south.

I've worked with challenged credit with my own rentals, but not without some built in safeguards. For example, if their credit score isn't stellar due to a bk, student loans or medical debt, they should be making 4 times income to rent and have the previous landlord singing their praises as a great tenant.

Screen carefully. If you have any reasonable doubt, move on to the next applicant.

@Robin Boyer, avoid any online leases or agreements that may not be specific to the landlord/tenant laws of your state. Check with your local real estate association (sometimes they sell these forms to the public) or consider joining an association that represents rental property owners such as the California Apartment Association (CAA).

Good luck and congrats on your purchase!

@Kenneth Garrett, You would only need the co-signer if the primary applicant didn't meet your rental criteria. Start with credit, then income verification, then rental history. The reason why many here recommend you do an automatic co-signer for students is because most applicants in this category may not be able to meet the minimum criteria due to a low or no credit score, lack of sufficient income or no previous rental history.

@Lindsey Kramer, even if your state does not require a notice, it is good business practice and a courtesy to your tenant to provide a day and time window. Here's a link to a PDF from State of Colorado regarding this and other notices that may be helpful

https://www.colorado.gov/pacific/sites/default/files/Attachment%2010-Landord%20and%20Tenant%20Rights.pdf

@Account Closed, If the other homes in the neighborhood are dealing with rodents, then I would recommend doing a bi-monthly service. You can build this cost into the rent when you do an increase or on your next lease up. Roaches and rodents are a habitability issue that landlords must address in Cali. However, if the tenant's action or inaction is promoting an infestation (you'll need to have proof), then I would issue a three day to cure or quit (check the laws in your state on specific notice you can use for violating this section in your lease).

If it is a multi-housing, treating one side is ineffective. We own a halfplex and the tenants next door live like pigs with a nonresponsive owner. Our tenant, who is very clean, gets roaches now and then, so my husband who owns a pest control business does a free treatment for the residence next door as well.

What others above said is accurate about tiny roaches versus the big ones. German cockroaches are very difficult to get rid of and requires a proactive landlord and tenant to do the job. 

Have your pest company, treat the plumbing voids, inside cupboards and around baseboards too.

Good luck!

@Michael Grazul, If it is just for one SFR, all you need is a separate bank account from which all rental transactions go through as well as a spreadsheet system to track income and expenses and a way to make notations on communications with your tenants.

@Shannon M., check the laws in your state regarding late fees and how they are collected. For example, in Cali, to collect a late fee, you must provide a separate  three day cure or quit notice and cannot tack a late fee onto the pay or quit notice for late rent.

If the tenant is on a month to month and paying late seems to be a pattern, consider giving tenant notice to not renew the tenancy and start with someone fresh. Late fee collection can get dicey (you have to show what your administrative costs are in the collection of them if it goes to court and most courts will not grant an eviction over late fees. 

If you think it is worth enforcing the late fee, then learn how to do that. If the tenant does not pay rent by your specified time, give a notice immediately. By waiting 10 days to collect, you have told the tenant it isn't a priority to collect rent on time.

@Mike Rice, Pools do pose a liability that you have to factor into your costs. Do not depend on the tenants to pay for pool service or to service the pool themselves. Hire a pool service. Make sure you have a landlord insurance policy on the property with a minimum of $500k liability as well as a 2 million umbrella policy. It's also helpful to require your tenant to carry renter's insurance which includes at least $100,000 liability coverage. 

However, for a few thousand dollars you can have it filled in. That may be the wiser choice if you don't want to risk the liability.

Good luck!

@Sarah Nguyen, make sure co-signer also goes through your screening process (credit check, income verification and rental/mortgage payment history) In answer to your question, I always require a co-signer for any of the following situations:

- If credit score is below minimum set by rental criteria. For example, a score under 600

- If income is less than 3 times that of the rent

- If the applicant does not have an established rental history both current and previous. For example, he/she is currently living with friends or family

If you will be renting to students, it may be wise to get parents to co-sign anyway, particularly if the applicant falls short of the criteria listed above or this is their first experience away from home. Depending on the laws in your state, you may also be able to ask for a higher security deposit to compensate the risk.