Logistics and Best Practices for the Actual Rental Process

[Rishi Ramlogan]

Hello all:

Great information and I appreciate the opportunity to learn from your experiences.

I am just finishing the renovation on my first property and have a couple of questions:

1) Could you describe your logistics and/or best practices for the actual process of renting out a property? I understand that screening for tenants is among the most important tasks and Bigger Pockets has an interesting and informative guide on that topic.

Another subject I am focusing closely on is drafting of the contract with an attorney, as I can be fairly ornery and/or litigious and want to avoid problems before they arise. I would be interested if there are any particular clauses beyond the standard language of contracts that you have found helpful in avoiding problems. For example, this is a condo so I am adding a clause that they must follow all HOA rules or pay corresponding penalties.

2) What is the actual process to rent? Sorry for the amateurish nature of this question but I don't plan to use a real estate agent.

- What marketing methods do you use (Craigslist, FRBO, MLS flat-fee listing, etc.)?

- Do you show via an open house or private showings?

- What is the follow-up after that? At what point do you give someone an application? If multiple people are interested, how do you ensure you get the best client while still abiding by Fair Housing laws? Do you process applications (and application fees) and credit checks for all before deciding or one at a time?

- Do you use a program such as Rentalutions or EasyRent to secure the application, perform background and credit checks, and collect rent? Any preferences?

3) Unrelated question but anyone have experience with furnishing their rentals? Based on the prices I got from Cort Furniture (a furniture rental company), the ROI on purchasing furniture and electronics and including them in your rentals would be far higher than even the ROI on the property itself. I understand not all tenants would be interested in that arrangement but the ROI makes it very appealing.

4) One more unrelated question: yields on high-end vs. mid-range rentals? I spent a year and over $250,000 (down payment, renovations, and furnishings) on this two-bedroom condo outside of Washington DC, so I'll report back if it turns out to be a mistake. But if you have a unique property that can command high rents and have doctors and lawyers as tenants, that seems like it would make the entire process much easier for someone who has another full-time job.

I am estimating cash-on-cash returns of 6% on this property and I have read about double-digit returns on some of these boards (I did not purchase below market value). I am sure the issue of exact cash-on-cash yields has been discussed elsewhere but basically my question is what level of renovations you have found to be most profitable.

Thank you!