How do you find tenants?

Question

I have a PM because I am an out of state investor. My PM collects rent, book keeping, finds and screens tenants, etc.

I’ve realized most of these things I can do myself. One thing that I might have difficulty with is finding tenants. I don’t really know how to do marketing.

What would be some ways that I could find tenants? What questions should I ask them?

Where can I draft a good lease agreement?

What app or website should I use to collect rent?

Should I try managing myself or should I just keep the PM?

Nathan Gesner · Answer

But then you list four things you can't do.

Maybe property management looks easy because your PM is doing such a good job?

My company screens over 1,000 applications a year. We know all the tricks and scams. We have a score sheet that ensures fairness and objective results. We can spot red flags you've never even heard of. We have strong marketing that exposes rentals to the right market for the right price because we constantly monitor prices. We have a lease developed over the last 13 years, attorney reviewed, and in full compliance with the law. We know the law inside out and always stay updated on changes. We have a list of vendors that are professional, fairly priced, and they pick up the phone when we call. We know how to document rental conditions and protect you when a Tenant moves out. I can list 100 different things we do that you won't be able to do, or that you won't do as well.

If you're smart and work at it, you can do as well. Be careful with thinking you can do it as well as your PM, particularly if you are in another city/state.

Biggerpockets sells a Lease Agreement Package under "TOOLS" at the top of your screen. $100 for a lease and several other documents, written by investors and attorney approved for your state. It's better than what you'll get from most attorneys and what you'll find on the internet.

Alexander Szikla · Answer

I find my tenants through Zillow, Facebook Marketplace and Apartments.com

I have them fit the following criteria:

1. Credit Check

2. Background Check

3. Income Verification

4. Employer Reference

5. Prior Landlord Reference

If you have below 10 units, I'd say you can self manage and not rely on a PM

Vicki X. · Answer

@Mike Boss

There are many online tools that empowers investors nowadays. Through them, you can list properties, screen tenants, collect rents and do bookkeeping easily, just as a licensed property manager can.

I've been managing a few of my single family houses myself, both local and remote. It's not hard with a good network of professionals (handyman, and folks who have the knowledge or can direct me to the right person). You can certainly test them and see what you want to do yourself vs. outsourced (like leasing).

My summary of such tool:

• Listing and leasing: Zillow, Tenant Turner, and others (I said “Others” as many platforms can no longer list on Zillow timely and effectively)
• PM software (lease and e-sign, rent collection, maintenance etc.): Azibo, Avail, Innago, Apartments.com, Hemlane, Turbotenant, Rentredi, Tenant Cloud, eRentpayment, Zillow
• Rental accounting tool: Azibo, Stessa, REIHub, Quickbooks (not specifically for rentals and pricier though)
• Rental banking: Azibo, Stessa
• move-in/move-out inspection: rentcheck

Hope it helps! I’ve used a few and tested many.  Happy to share more details.

Stefani Mokris · Answer

My two favorite ways to find tenants is my placing a sign at the window and advertising in the local newspaper. And believe me, it still works!

But since you are are a out of estate investor, have you considered local Facebook groups or the FB Marketplace?

Rachel Jenkins · Answer

They use Zillow for rent collection and background checks.

Michael A. · Answer

This is helpful. What do you use to collect rent. Is there a free website I can use for my tenants?

Patty C. · Answer

Hi @Mile Boss,

I use Craigslist and Zillow (which syndicates to Zillow, Trulia, and Hotpads. The most qualified ones have come from Craigslist and Zillow.

How familiar are you with federal, state, and local ordinances in your area? If you don’t understand them, then keep using an experienced and dedicated PM. Learn from them, and be attentive to the service providers used for issues that come up. You can decide whether you really want to take this on from afar if you are able to put a system in place. Some property managers may agree to help you find the tenant and then you take over the management.

Just like the real estate market is local, so is the property management business. Some states may be tenant friendlier than others. Some have heavy rent control with some cities being very tough on landlords. Don’t save hundreds to lose thousands.

Learn as much as you can from your PM and ask questions., Join a management property association in the area where you have rental property, take classes, etc.

Even if you understand the laws, it is still going to be challenging when there is a vacancy or something happens to the property. Hopefully you have trusted professional in place to work with you if you self-manage.

If you are not experiencing issues with your PM and the money is coming in, maybe it is because you have a good PM.

Why disturb something that is working? You can use the time to find more deals and practice financial freedom by having someone else take care of it.

Tommy Parker · Answer

Listing your property on listing sites like realtor.com, zumper, and etc... Since I use Innago they are able to list my rentals and the tenant screening they offer also helps me find great tenants. Plus it's all free.

Bob Lachance · Answer

@Mike BossHave you considered hiring a virtual property manager for these tasks? We have had good success with this model for our clients.

How do you find tenants?

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