Potential tenant has Realtor

[MONICA WATSON]

I am trying to rent out my first buy and hold. I have someone that is interested and they had a realtor to contact me. The Realtors commission is half of the deposit amount and she stated she has detailed information, credit and background on tenant. The tenant also has a section 8 voucher. My question is do the Realtor facilitate the lease and do I still have her fill out my app if I'm provided the information? I have not formed my own lease yet,,Can I use her Realtor to my benefit? I'm a little throwed off as I planned to do rental process myself. ANY ADVICE?

[Marcia Maynard]

I would think the prospective tenant would pay for the broker service since they were the ones that initiated the use of a realtor in their search for rental housing. I wouldn't pay for the realtor services and I wouldn't rely on their screening method, but I would review the packet of information they present to me to see what I could glean from it.

There are a few important things to have in place before you begin to look for a tenant....

1. Market Niche - define your market... A, B, C, D class properties? Business professionals, students, low-income, senior housing, inner city, suburbia, rural, industrial area, vacation area, close to schools/universities, close to hospitals, pets/no pets, smoking/no smoking, Section 8 or not, etc.

2. Rental Criteria - what is your minimum criteria? Helps you find good prospective tenants who will pay rent on time, take care of the property and not be a nuisance to neighbors.

3. Tenant Screening Questions - must be in compliance with the Fair Housing Act - not discriminatory against protected classes. Ask the same questions of each prospective tenant. Get the answers you need to see if they meet your rental criteria. Will they be a good fit for the property and for your management style?

4. Advertising Content - for online advertising or print. Get good photos and details of the property. Include some of your rental criteria to discourage undesirables from applying.

5. Tenant Screening Agency or Verification Method - define what you need. Set up an account with an agency or do some or all yourself. Do thorough background checks and verification of rental history, income, credit history and legal history.

6. Rental Agreement/Lease Agreement - take the time to do it right. Make it comprehensive and good enough to stand up in court. Can include an addendum of your property rules. Remember common sense is not common, so you had best establish some property rules.

7. Move-In Packet - include information to help the tenant get settled, change utilities into their name, get to know the community/neighborhood, use the property features correctly.  Explain who you are and how to contact you or your property manager when necessary.