Higher Long-term Rental Demand than Expected

[Andrew Massino]

Question for the Group: My wife and I have a tenant moving out of our rental house this month so we posted the house for rent on Zillow for a price that we thought was comparable to the area (we actually thought the price we chose was much higher than average). We have been overwhelmed with interest in our house and we believe we could have listed it for more. What is the etiquette or strategy we should take in getting not only the best deal but the best tenant? 

[Jim K.]

@Andrew Massino

Hi Andrew, I guess it's my turn now. I tend to advertise C-class single-family through Facebook Marketplace when I have to. On my last property, I got at least 200 casual inquiries, and the property was right at market value, with full security deposit.

As @Nathan Gesner and @Bjorn Ahlblad said -- the basic requirements should you be in your ad. Rent-to-income ratio, no evictions, mandatory credit/criminal background check are always mine. As Nathan emphasized, you have to make it absolutely, absolutely clear from the initial conversation that anyone and everyone you put in that place will have to pass a mandatory credit/background check. They hear "TransUnion SmartMove full background check," it cuts down on the flakes like nothing else.

My next step is usually an open house they're invited to come to and I hand them my application that they have to fill out, and either scan or take a picture of and send back to me.

On this last property, we went from 200 casuals to 30 visitors at the open house taking applications to five completed applications to three workable possibilities to two credit checks, and it was crystal-clear. One applicant went on my waiting list for something similar, the other got the apartment.

Something Nathan says all the time that I find myself repeating a lot these days is that, as a landlord who is looking to grow, YOU'VE GOT TO LEARN THE LAW. There's no way around it. Even if you hire a lawyer, the lawyer's going to spend the bulk of his retainer simply explaining the law to you. Not learning it is not an option past, perhaps, renting out one or two properties as a hobby.