7 Questions from the first renting out landlord.

[Kevin Kim]

Hello,We purchased a property in San Bernadino California couple months ago,And we just listed our house for rent on Zillow.This is our first time to rent out house, and I have a few questions.

1. Back ground check. I have searched, and I think AAOA tenants screening is good option to do background check tenants..Please let me know if using just AAOA tenants screening good enough, or do I also have to use other websites or services for comprehensive search.

2.I heard that I have to get a signed agreement from tenant for background check.Please let me know if there is a template that I can use, or is there an easy way to get a signed agreement rather than email back and forth and get screening fee from applicants? Can I do all those things in AAOA?

3.We’re going to do background check all people(18+) who will live in our house. However what if they lie?

They can say just 2 people will live, and 10 people can live in there. And even though we see many people in the house, they can claim that they are just visiting them for few days. I think it is easy for tenants to hide bad background family member by not giving us information about the person.

4.What is the best methods to get rent. I think asking tenants set autopay is the best way. It looks like that I can do it though Zillow. Is it good?

5.I heard that we can also have No smoking policy. Please let me know if it is good to have those policy. Also, if tenants lie about it. How can I know?

6. When I listed our house , Zillow asks me if I want "Accept Zillow online applications".

It looks like that it offers applicant summary, credit report, and background check. It will be very convenient.However, I have researched, and it looks likes that their background check is bad. And, if we're going to use 3rd party background check like AAOA, I guess that I should not allow Zillow online application, right? Can I use both Zillow online applications and other service like AAOA? If I don't use Zillow online applications, please let me know procedure that we need to do from getting applications to rent out. I guess that I need to email rent application to people who contact us, showing them house house, and based on the information, we need to background check, and we choose one applicant, and getting sign.. etc.

7. I'm going to allow pet any size. However I saw many rent doesn't' allow pets, or allow only small dogs.Are there reasons? If tenants get renter's insurance, I think there will be no problem.

It will be appreciated for any comments.

Thank you. 

[Greg M.]

This is the single most important thing to remember when renting a unit: There is no scenario whatsoever where having a bad tenant is better than having no tenant. Adhere to this no matter what. 

1/2) AAOA background check should be fine. Tell the prospect upfront what your knockouts are so they won't waste their money if they know they aren't going to get the unit. Have the tenant pay for the check and the site will send you the reports. 

3) If this happens and you think they are lying, this is for an eviction court judge to decide. I have wording in my lease that allows a set number of days an unauthorized person can spend the night. Above that I list a per day fee of $150 per unauthorized person. FYI, right now you cannot evict for unauthorized occupants. CA still thinks that COVID is going on. 

4) Every way except cash in your hand can be reversed. Zillow and the like are fine. Checks are fine. As long as you get paid, don't worry too much about how the payment arrived.

5) No one wants to live in an ex-smokers house. 100% put this policy in the lease. Make it clear that smoking includes vape, hookahs, etc. You will instantly know if they lied when you smell the smoke in the unit when doing an inspection. You will also be able to see it on the walls. You can get a test kit if you want to go that far. 

6) Some people love it and some hate it. I prefer more control. With you having one unit, you can spend some time handling things without the need for an outside service.

7) Every disallowed pet magically becomes an ESA. Price in the rent allowing pets. Sure, pets can destroy units. So can children and bad adults. Require the pet be licensed and vaccinated. 

Figure out your rental requirements. Put them in writing and follow them. Sob stories should be ignored. Wanting to help people in a difficult time should be ignored. 

Keeping rent below market because the tenant is old/disabled/going through a divorce/etc should not happen. Lease violations MUST be addressed. If you let a tenant break one of the rules, they will break all of the rules. 

Require Renters Insurance with you listed as an Additional INTEREST and a minimum of $100,000 in liability coverage. YOU are protected with this insurance. 

Make sure you have landlord insurance on the property. A standard homeowners policy will not cover you. Make sure you have significant liability coverage. 

FYI, before you list the unit for rent, read up on the local, state, and federal laws on housing. Screwing up is not a mistake, it can be a life altering event. Oops I didn't know turns into lawsuits and massive fines. Know what you can and can't do with late fees, security deposits, bounced checks, pet, etc.