First Time Landlord: Am I Doing It Right?

Question

Hey All,

So I've decided to rent out my property.  I'm moving out 8/1 so I listed it on the high side to start at 2k/mo.  A guy came in with his girlfriend and looked at it yesterday and the most he can do is 1900/mo, which is fine with me since it's still on the high side of what I think it's worth.

I had him fill out a bunch of pre-screening questions that I pulled from this forum like intended stay, why are you leaving current place and everything checked out.  I had him fill out a rental app and had him to do an experian credit check and everything looks good.  He is a self employed realtor making 4,000 a month, she works in an office environment making 2,600.

Here are my questions:

1.  They want a 2 year lease, good idea or bad idea?
2.  Since he's self employed should I ask for tax return and w2 or paystub from her?
3.  Should I have both sign the lease?  If so, should I do credit check on her too or just him?

Thanks!

Tom S. · Answer

I second Jon K.'s response above - that's exactly how I would do it.  Only item to add, I require a signed rental application for any tenant living in the property.  So two signed applications, two credit checks, both tenants on the lease.

- Tom

Jon K. · Answer

I wouldn't do 2 years. Do a year and let them renew later.

Get his W2 and tax return.

Check his credit, her credit.

Check his income, her income.

Check his references, her references.

I would want them both on the lease.

Matt Devincenzo · Answer

Probably won't matter. If the tenant wants to leave they will, reason being they know if you want to get money out of them you will have to take them to court so they assume you won't. For you, all those issues that were mentioned are likely not a big deal, people buy houses and don't like their neighbors so don't stress about your tenants, remember this is business not a popularity contest, and sometimes you will have to deal with the not fun part of the business which is tenants you won't like.

Yes all adults in the rental should be screened the same way IMO, including rental history, income, credit and criminal.

See above.

One speedbump with this particular couple is explaining the situation clearly-

If you split up; have a fight; don't want to live together anymore...it doesn't matter. You will both be on the lease and responsible for the rent, so no matter what happens understand that you will just have to figure it out because your relationship problems are not something I'm going to have to figure out so don't ask me later.

William Brace · Answer

Harry Campbell . I have multiple properties I started with two year leases on and they have both renewed for two additional years. Other will think I'm full of it but although you may have a one year or two year lease the tenant can still pack up and be gone overnight so I wouldn't say your anymore safe by doing that. However, in my situation everything has worked out and they wanted the two year lease to lock in their monthly rent without me going up at renewal time. So everyone has their reasons and for the tenant it may be piece of mind knowing they have a physical address for the next two years and don't have to worry about the hassle of moving.

As to the names on the lease, I have both parties sign the lease so in the event something goes wrong, they are both liable vs just one and the other trashes the place and moves out leaving the other one hung out to dry such as a separation or divorce.

So if you have them both sign the lease I would advise doing a credit check on both to be safe. I would also advise on getting the pay stubs you asked about. Just another way to say employment verification. Others can chime in on this but I would say tax returns on him for being self employed would be acceptable.

Felicia W. · Answer

First I have to admit, I do not know much at all.

With that being said - I was asked yesterday if I would be willing to do a 2 yr lease.  Sounds great - I hate looking for a new renter.  But what happens if I do not like the renter?  What if they live like pigs or make me stress out.  What if they are bad neighbors?  I want the neighbors of my rental home to be happy, good neighbors look out for you.

A two year lease is very tempting but I don't want to take that chance the first time they sign a lease.

First Time Landlord: Am I Doing It Right?

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