04/09/2024
𝐀 𝐅𝐞𝐰 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐇𝐚𝐜𝐤𝐬
Running your rental portfolio can be a daunting task. Whether you have two units or two hundred units, each door tends to have its own unique quirk. The same goes for the tenants that live there.
As my dad always said, if you're going to do it, do it right.
It all starts at the ad. Obviously, you want to target your perfect tenant. Its extremely important here that you don't violate fair housing laws. I cannot stress that enough. One way is to highlight the amenities that my ideal tenant may enjoy. If you want a dog lover, highlight the local dog park within walking distance. If you want a family, highlight the school down the street.
The most important part of this whole endeavor- they need to be able to afford it. You don't want to occupy the property and have to evict them three months down the road. Now, understand that you're not going to hit this out of the park every time. Life happens and, occasionally, tenants don't pay. However, there are ways to mitigate this.
First, have a good system to screen your tenants. There are plenty of options out there. You are going to want to check their eviction history, credit history (be careful going off of credit scores alone), and criminal background.
Next, check their pay stubs and work history. I like 3x the amount of gross monthly rent in pay. You can vary this based on your tolerance level. Now, they could be making 5x the amount, but their work history shows that they bounce around from job to job every couple of months. That could show instability. They may not be able to cover rent and utilities on the next job.
So, they're a rockstar. Now what? The lease. You can get a state approved lease online, typically. This will be your run- of- the- mill lease that most realtors and property managers are going to use. However, I've seen one page things written up as well. Read your lease. Know it well. Understand all of the provisions in it. If you don't like it, I would recommend spending the money on having an attorney write you up one you like. If you are too restrictive, you won't keep your tenant. If your too loose in your agreement, you're going to have a headache.
Once they pay the amount of rent and deposit and go to move in, provide them with a move in checklist. ALWAYS PUT A RETURN BY DATE ON THIS!!!! Read that sentence again. If you don't and they turn it in three weeks later, you could be on the hook for the damages they did in those 3 weeks when it comes to move out charges. The preferred method of turning it in is an email. That way you have an electronic time stamp.
If you have ANY potential questions on renting your property out, consult a property manager. I love my realtors, but most are not property managers.
Hopefully this helps and you get your Rockstar Tenant!!