Any advice for first time landlords?

Question

My wife and I are first time landlords. We just posted our property using Avail. When we do showings of the property do we give the potential tenent an application or instruct then to the software we are using? Since we are using a property management software how does that work? What are some key steps to take showing the property? Any advice for first time landlords would be much appreciated. Thank you.

Bjorn Ahlblad · Answer

We don't show until they have earned the 'right to see'. That way they actually show up and we know they can qualify. They have to fill out our app, provide verifiable employment  and rental history and w2 docs. prior to showing. Screen like your life depends on it; and it does!!

Scott Trench · Answer

Try this article! I think it will comprehensively answer these questions:

https://www.biggerpockets.com/...

Drew Sygit · Answer

@Maclovio Garcia jr read, read and read about landlord stories you can learn from!

Build systems and processes that you can execute half asleep - and stick to them!

In our experience, 90% of the time we make an exception from our standard procedures, it ends badly.

So, dn't fall for applicant, tenant or handyman "Cry stories"!

Pierre E. · Answer

One thing I wish I did was take NOTES... being a successful landlord means you build systems that you can scale. Have some place to journal for real estate make notes ideas etc. Where can I make this smoother for the future what do i need to prepare draft source create etc... what is my move in process/system/routine    what about when a tenant says something is broken?  Who do I need in the future for repairs?   What records system should I setup?  check out this article also ----  https://www.biggerpockets.com/...biggerpockets.com/guides/landlord-rental-property-managementAnother point... Water I think is the most common property enemy. Rain Water, Flood Water, House Water.  - Leaks sometimes - roof leak or drain leak. Leak slowly continuously .... water supply line issue.

Oh yea. Speaking of water supply... Not sure how much you understand so this might be extra but you dont need to be a contractor however you DO need to understand a few basics of  physical property 101  helps  in knowing who to hire and also what to look for in terms of damage or issues-  a house can be divided in three parts... the bones/structure, the guts/mechanical (behind the wall stuff that you see during the "rough-in phase" of construction),and the face or skin/cosmetic aspects (stuff in front of the wall - cabinets, paint, light fixtures, faucet fixtures, flooring etc).  Mechanical parts are HVAC, Electrical, and Plumbing and one of these things is more likely to cause problems while your tenant is occupying the property and can sometimes become an urgent issue.     HVAC includes the ductwork, and then the blower, and then the cooling system (Air cooling coils and outside condenser) or heating system (Furnace) or both that heats or cools the air the the blower pushes through the ducts. There are other types of heating and cooling like boiler radiator, mini-split cooling and heat pumps baseboard etc but wont go too far into that)  Plumbing is water supply, and then the DWV system or Drain Waste Vent - To drain, pipes need to be vented. I had no idea about that when I started wanting to invest in real estate. See the picture below for what is "behind the walls"  These things tend to be behind certain walls in your house and not others, houses generally try to keep anything water related close to each other. Anyway hope that adds something? Good luck!

Julie Hartman · Answer

Just know going in that people require a lot of hand-holding now. Create solid policies and stick to them. Keep them handy, in writing, so they are easy to refer back to. Learn and understand your state landlord/tenant laws inside and out. Pre-screen over the phone and once you have a list of showing appointments, make sure to send a reminder text or phone call to confirm they intend to show up. If they don't, no second chances. We require meeting all persons who could occupy the property and we only show once. This cuts down on a lot of unnecessary driving and wasted time. Verify, verify, verify, all supporting documents. Good luck!

Maclovio Garcia jr · Answer

Thank you all for this info! I have a follow-up question. My wife and I are considering renting out to someone on Section 8; however, the housing department said it could take about 4-5 weeks to get approved. We've heard stories about section 8 tenet good and bad. We are not opposed to it or all for it. We like the prospected tenant and considered a holding fee for them but just not sure for how much. Any suggestions? We are currently asking $2200 for rent. Also, should the holding fee be used towards the first month's rent, or should this just be a separate, non-refundable fee? I personally feel if it will take about a month to hold the property, then the fee should be non-refundable? Any tips on how it works and how to set the standards when it comes to people using vouchers. I welcome any thoughts or suggestions. Thank you!

Terrell Garren · Answer

M2M rental agreements. One of the best things I've learned in 14 years.

Alexander Szikla · Answer

Personally, I advertise using Zillow, Apartments.com and Facebook.

My one piece of advice would be to avoid the folks willing to pay the most - there is a reason!

Also, run a thorough screening process including:

1. Background Check

2. Credit Check

3. Income Verification

4. Employer Reference

5. Prior Landlord Reference

Jason Smith · Answer

Look at Zillow for similiar rentals in you area, especially those from property management companies and emulate the listed requirements. Requirements must be applied equally and not violate federal and local laws. Making requirements known upfront helps weed out people trying to avoid tenant background checks and income verification, and time wasters as well. All requirements must be applied to everyone, every time.  Read the laws concerning rentals in your area, and the laws on tenant rights in your area. California is the most landlord unfriendly state.

Henry T. · Answer

Just in case you don't know already.....You may be in the worst state possible to be a landlord. Your elected officials have created a very dangerous minefield for you the landlord. One wrong step and boom!  (I'd move to Arizona if I were you). Before you even list your property you should be prepared with a binder of rules of do's and don'ts that you can easily refer to, prepared by someone with experience that's on your side. Read/watch a bunch of tutorials on screening, not just one.  Let nobody see the property unless you are sure they have the money and a good history to qualify. Here's a good one... Rent to someone over 65? guess what? They're never leaving unless they want to. Have fun.

There's a lot of people here that can help you, but you should educate yourself about your local law requirements. It may be safer for you start by hiring a local PM company.

Any advice for first time landlords?

Most Popular Reply