First time renting a unit

[Sonu Sundar]

Hello

I am a single person, recently bought 2200 square feet house in Dallas county and unfortunately change in job nature, led to travel frequently. So i would like to use the mother-in-law unit [part of the house] for my stay and rent 1700 square feet to a middle age or senior couple.  

This is my first attempt of renting the property.

Is it better to go through the rental agency?  or try on my own?

How do I screen the people of similar interest?

Do I need a lawyer to draft the rental contract?

Input is greatly valuable.

Thank you

sonu

[Nathan Gesner]

@Sonu Sundar you can ask 100 people and get at least 75 different answers.

I would only consider renting it yourself if you were experienced. It seems like you are new to this so I highly recommend you hire a property manager. If you find a good manager, they will ensure you get a quality tenant that pays top dollar and takes care of the home. It will make the entire process easy. All you have to worry about is collecting your check and reading your statement each month to ensure everything is going smooth.

If you consider a property manager, please read on.

Many Landlords complain about Property Managers. We're glorified rent collectors. We're thieves. We don't care about the property like a Landlord would.

Do you want the truth? Bad property managers exist because of bad Landlords! If you hire the first PM to show up in a Google search or the one with the lowest management fee, you're getting exactly what you deserve.

When searching for tenants, do you take the first person to show up with cash in hand or do you screen them and look for the best applicant for your rental? Likewise, you can roll the dice on a Property Manager or you can put in the effort to "screen" them and choose the one that is best for your situation and property. It's not rocket science but it does take some work.

You can start by going to www.narpm.org and search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!

4. Review their lease agreement and addendums. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance or problem tenants. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

I hope this basic guide helps. If you have specific questions about property management, I'll be happy to help!