Can I improve my process?

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Here are the two pieces of information you need to make this determination: 1. Do they make enough money? 2. Do they prioritize rent over all other expenditures? If the answer to both questions is "yes," they can afford the property. In order to determine the answer to the first question, get a couple recent paystubs and verify employment information with their employer. I generally like to see that they bring home at least 3 times the rent amount per month in collective income. In order to determine the answer to the second question, check to see if they've had any evictions or foreclosures in the past and verify their payment history with at least the prior two landlords. If they've always paid their rent on time in the past, they likely will continue to (conversely, if they've ever not paid their rent on time, it means they don't value a roof over their heads over other things, and deny them). Personally, I don't care about credit score. There are plenty of people who can't pay their *other* bills on time, but put a very high premium on making sure their rent is paid and they have a roof over their heads. This is what's important to me (though a higher credit score is certainly a bonus). Why do you have an issue with them coming out to do an inspection? What they are looking for is that you have the processes and tools in place to ensure the privacy of the data -- this means making sure your computer is password protected, making sure you have a locking file cabinet, making sure you have a shredder, etc. The inspection is not that rigorous, and certainly worth it if you really want the full credit reports. For things like light bulbs, put in the rental agreement that the tenant is responsible for the first 10 dollars of repairs in any given month. This means they pay for things like light bulbs, batteries for smoke detectors, etc. Or, if you don't like that approach, just leave a bunch of light bulbs and batteries in a kitchen cabinet for when they move in. As for things like dripping showers, this is something that you should want to fix. Ultimately, the house is your long-term investment, and making sure that it stay in good shape should be your goal. Plus, the tenant has a right to working fixtures, etc. Especially if they're responsible for the water bill.

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[[[.... Do they make enough money?..... Do they prioritize rent over all other expenditures?....]]]] I also want to know if they did any damage to prior rentals. It doesn't do you much good to have a tenant with enough income who pays the rent on time and does $15,000 in damage to your unit (yes, it is possible to do that much damage) . Also, I do not want that "sufficient income" to come from the sale proceeds of a marijuana grow operation or a meth lab. So I run a criminal background and verify their source of income. I also check to see if they have been involved in any lawsuits. I don't want one of those tenants who invent things to sue the landlord over. (Yes, they are out there and they are always charming people)

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Thank you all so much for the help @ J Scott I really like seeing things like this, a rule of thumb of 3 times the rent that they need to bring in per month. One problem I've been having is that the pay stubs haven't really been paying off so much, so it's why I started requesting W2. I would get a story about how they didn't make as much money this month, they took a vacation this month or some story about why the last two paychecks were a little low. So I started to ask for their w2 as well just to see how much they make per year. So I could use their pay stub for the 3 times the rent rule, but is there any suggestion if it doesn't match up and their story is that it was not a typical past two weeks for them or month. I have no issue at all, but called the erenter company a long time ago and they indicated that I couldn't get this type of account. I do have a separate office in my house, but she asked if there's a lock on that door, is there a sign on that door and basically indicated that she hasn't heard of anybody who works out of their house getting approved. So since the CSR indicated I would be wasting my time, I never tried to setup an appointment for somebody to come out to see my home office. Did you have a different experience or is it an erenter.com thing? Because I have no problem having somebody come out to my home/office This was a lady who called me one day to tell me the show was dripping. Then one day later called me and told me that it was her imagination and that it isn't dripping. Then called me back two days later to tell me it was dripping again. So I went out with my plumber who looked at it and said if it's dripping once every 3 hours or longer, that's condensation in the pipes and is not an issue. She was with me when the plumber said this, then about a week later she called me again to show me that there was a drip. I couldn't see any drip at all when I was there for 30 minutes. I spoke to a few other plumbers who all told me unless it's one drip every second or every two seconds you will spend much more money fixing the drip then it would cost in water even after 10 years. @ Realtyman I was more referring to $60 dollars, not hundreds of dollars. I meant rentals.com as I found a pie chart online somewhere on what places people search the most for rentals and 3rd place was craigslist and I can't remember what was second place, but 1st place was rentals.com. So I was more questioning if I should spend that extra 60 dollars. Even though I haven't had any issue with tenants, it would be nice to get more exposure as maybe I could get a better price or better tenants, but just a thought. @ Cameron Novak I have tenants in there now that are about to leave and have already signed new tenants. 4 years ago I had trouble renting the property, but I'm certain it was the price as for the past 4 years I haven't had an empty month since then. So far no issues, but again I'm getting new tenants, so we'll see how that goes. What is CL forum?

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@ Jon Holdman I actually think it's a great idea. I rarely have no shows, very very rare, but I call before I drive out anywhere. Normally I get to the house a few minutes before, open all the blinds so that more light comes through and it has a larger appearance, but I really think you have a point. Maybe next time I can schedule them, not at the sametime, but 15 minutes from each other. Funny about what happened with your faucet, but I had the exact same with a faucet and this was with a contract that landlord covers 100% and no 10 dollars per incident. The tenants finally told me that there was the facet was leaking and by then the bottom of the cabinet rotted out completely. So I don't see either contract helping me in that situation, because it probably took me a few hours to rebuild a new bottom cabinet and rip out all the rotten out stuff. I do about 90% of my own work at the place, but I have a plumber that is too inexpensive that it makes no sense for me to do certain plumbing myself. I do see value in what your saying, because one tenant I had told me he hear noise in my walls, which I had a busted pipe a few years ago. Maybe if there was a deductible that they would be less likely to call and the damage could have been horrible. My plumber came in, cut the wall, replaced the pipe, patched it up and painted for 40 bucks. But I can see what you mean about what if the tenant would never had called, but I guess it's one bad tenant that would call about 3-4 times a month with things that were just silly and normal. Maybe 1 out of 4 was something needed repaired. That's all I want to avoid the things I feel are not an issue. I'm talking about things I would not even fix at my own house, so I find it insane to do it for my tenants when they aren't issues, but a persons preference.

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Yep, I tell them to show up at the same time. Most folks spend all of five minutes looking at a property. Maybe 10 if they're really interested. Most folks also don't show up exactly at the time you tell them. I try to be about 15 minutes early, and its pretty unusual to have two show up at exactly the same time. If they do, whoever gets there second waits a few minutes. Combine that with the fact that only about half the people who say they will come actually do and this really isn't a problem. Its made the showing process much less painful. Keep in mind that many people have no experience in repairs at all. Most folks don't have any tools or the knowledge to do even basic repairs. I deal with my properties myself. I always go have a look first and see what's going on. Many times, its a quick trip to Home Depot, $10 in parts and an hour later I'm headed home with the repair complete. It does get frustrating to have to deal with little stuff, but it saves paying someone $100 to deal with something trivial. The last repair was when a tenant called saying there was a drip under the sink. The sink faucet had broken and the spray hose had worked loose. I took it off and went to buy a new one. I told the tenants they had to pay, which they agreed to. Turned out the faucet had a lifetime warranty, so the new one was free (and much more strongly designed.) My total cost? $0. Just about 90 minutes of my time. My savings? Avoiding leak under the sink that would have destroyed the cabinet given time. I'd much rather be called to deal with something minor than to find the cabinet rotted out when they move out later. Whoever said rental properties were "passive" was full of bull.

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@ Financexaminer How would I know the law in Florida? A few property managers have been doing it as far as I'm aware. It's not about them paying for repairs, it's about paying for convenience or the argument that they believe something needs updated/fixed, when I disagree and I know spending the money is an absolute waste of money. I know when the next tenant comes in, they will careless about the change. I have recently had two people ask me who is responsible for repairs before I ever showed them the contract and I told them I would take care of anything the first 30 days, because I feel it's unfair for them to pay for any repair that was mostly likely there already before they moved in and that I charge 10-25 bucks after the first month for any repair. I explain to them that I just want to avoid people calling me for silly things that they should be able to do themselves or that aren't even issues.

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J S. -> lockbox sounds interesting, but a little bit nervous about strangers coming in my property without me ever seeing them or knowing who they are. I've noticed I've gotten all kinds of people and would hate for the wrong one to show up. I can see it benefiting time though Jon H. I was a little confused with your post. Do you actually show possible tenants at the sametime? So if a few call, then you tell them all to show up at the sametime?

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This is part of the gig. I figure it takes about 10 showings to get a good tenant in place. So, none of the showings are a waste of time, they're just one more check mark on that list to a good tenant. I generally only show once a week. I'll pick a time that's convenient for me and give everyone who calls and passes the phone screening that date and time. I then tell me to call 30 minutes ahead of the appointment or I will not be there. I usually end up with 3-4 people who say they will come and usually two who actually call and then show up. Once in a while only one will show, sometimes more than two show up. Since doing this, showings have become much more efficient. The other step is to ask them to fill out the application and pay the application fee on the spot. If they do that, they're serious. If they take an application, they probably are not. I have had a few bring an application back, but its rare. They must pay the first months rent plus security deposit in cash or money order before they get the keys. If they're holding the place before the sign the lease, I want the deposit at the time we agree to the hold, also cash or money order. Check cash with a counterfeit pen. Checks, even cashiers checks, can be forged.

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I think despite the disappointment, your biggest blessing here is that they have not moved in. Imagine that security deposit was OK, they moved in, then something happened to their job a month later and they couldn't pay and you had to go through the eviction process, then had to fix up your house for showing again. I'd taken personal checks for security deposit before but I went to their bank and cashed it immediately. Good luck with your next tenant! Angie

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Hi, welcome to Landlording! Income: I used income verifications and employment verifications, same as for a mortgage. I could run my own credit reports, but later, asked for the past two or three months bank statements and last months credt card statement. A verification of employment together with a criminal check on my own at the clerk of court was all I used and had very little problems. As to charging a tenant for repairs, can be illegal so check with your state, it's a bad policy anyway since a judge will frown on such tactics...why? Because a tenant has a leasehold interest in a property and repairs and improvements are a cost of ownership. It can be done and is common in commercial, but not residential. My leases have an administrative fee. At the time of making the lease it is agreed that the landlord will not be required to to make inspections at the request of the tenant, will not be required to return trash carts to the rear of the property, will not be required to mow the grass or pick up litter in the yard...etc. So, if such things become necessary, an adminstrative fee of XX dollars becomes due as rent and is payable on the following date rent is due and if not paid consititutes a late payment of rents. This has been HUD approved in addition to Section 8, bankruptcy cases and court in my area, so it's an acceptable means to collect fees for activities that arise that were unforseen at the time of executing the lease. Basically saying, I'll rent it for less if I don't have to do all this other stuff! Good luck....