Rental Property Investor · Los Angeles, CA · Member since 2019 · 28 posts · 7 votes
How would one go about getting their house rented? We are going to self manage right now but need some help getting the property rented...finding excellent tenants, doing the back ground and credit checks, as well as get the lease signed.
Chandler, AZ · Member since 2020 · 295 posts · 272 votes
6y
Unfortunately, it sounds like you are new to this business and have no idea how it works. No disrespect meant, but this is how its sounding. You're going to need to learn a lot more than you will receive in these replies, but lets get started. I'm going to assume you currently know little about the following subjects:
Contract: Don't try to create one as you will miss too many things. Obtain a current standardized Realtor contract for your state and use it. If there are additional conditions, make sure to add them to the contract or use an addendum such as a pet agreement.
Move-in / Move-out check list. Create a thorough checklist. Document the before conditions with pictures and video to back it up. Make the tenants fill out the checklist within 10 days of start.
Qualifications: Create qualifications you are OK with and be strict with them. What is an acceptable credit score? How much is the minum allowable monthly income? What criminal and civil background check issues are not OK?
Background check: There are many services but I like TransUnion SmartMove.
I always advertise on Zillow and have been very successful. I have been less successful with MLS.
Learn the rental laws of your area / state. One wrong move that lands you in court on the loosing end can be devastating.
These are a few tips, but are the tip of the iceberg. I recommend you hire a property manager with a good track record until you are up to speed on this.
Rental Property Investor · Hewitt, TX · Member since 2020 · 27 posts · 17 votes
6y
@Blake West I live here in Waco and am actually having an advice appointment with a long-time local property manager in town tomorrow. I’ll see what his situation is and report back. What zip is your property in?
Chandler, AZ · Member since 2020 · 295 posts · 272 votes
6y
Unfortunately, it sounds like you are new to this business and have no idea how it works. No disrespect meant, but this is how its sounding. You're going to need to learn a lot more than you will receive in these replies, but lets get started. I'm going to assume you currently know little about the following subjects:
Contract: Don't try to create one as you will miss too many things. Obtain a current standardized Realtor contract for your state and use it. If there are additional conditions, make sure to add them to the contract or use an addendum such as a pet agreement.
Move-in / Move-out check list. Create a thorough checklist. Document the before conditions with pictures and video to back it up. Make the tenants fill out the checklist within 10 days of start.
Qualifications: Create qualifications you are OK with and be strict with them. What is an acceptable credit score? How much is the minum allowable monthly income? What criminal and civil background check issues are not OK?
Background check: There are many services but I like TransUnion SmartMove.
I always advertise on Zillow and have been very successful. I have been less successful with MLS.
Learn the rental laws of your area / state. One wrong move that lands you in court on the loosing end can be devastating.
These are a few tips, but are the tip of the iceberg. I recommend you hire a property manager with a good track record until you are up to speed on this.
Investor · Clifton, TX · Member since 2016 · 69 posts · 14 votes
6y
Use a company like https://cozy.co/ to list your house. They will allow you to upload pics and give a description. It list the house on several websites. They also do the background and credit check for potential tenants. It’s free for you.
I use the standard realtors lease from Texas. You can use hellosign.com to digitally sign the lease. I believe they let you sign three docs a month for free.
Rental Property Investor · Streetman, TX · Member since 2018 · 527 posts · 495 votes
6y
@Blake West
Guessing from your LA profile plus the property is in Waco TX you are an out of town investor. You should seriously consider getting a local property manager. They will charge you 8-10% fee but well worth the money in the long run. If you are just starting out you can shadow your PM for a couple years to learn the local market and laws. If you feel confident after that then maybe make the move to self managed in the future.
As for advertising I have had the best luck using Facebook Market Place. Post an add on the local swap n save page. I get 20+ people on FB compared to 1-2 on Zillow.
Rental Property Investor · Los Angeles, CA · Member since 2019 · 28 posts · 7 votes
6y
@Chris B. No offense taken! I am new to this. Our first rehab is coming online soon. I think finding a good property manager is definitely the way to go for now. Thank you for the information! Are you an investor in Waco as well?
Rental Property Investor · Los Angeles, CA · Member since 2019 · 28 posts · 7 votes
6y
@Steven Payne So you self manage using cozy.co ? How many rentals do you do that with? How do you show the properties if you are out of town / state? Thank you for the info!
Rental Property Investor · Los Angeles, CA · Member since 2019 · 28 posts · 7 votes
6y
@Pete Harper Thanks for sharing Pete! I am thinking a property manager may be the way to go since it is timely do get up to speed on being a landlord not to mention the due diligence.
Chandler, AZ · Member since 2020 · 295 posts · 272 votes
6y
I own property in AZ, so I don't know the Texas laws, but in general processes are similar. Legalities may vary. Here are some more tips:
1. Here are a few (not all) of my requirements. Yours will vary and will need to vary based on the community in which the rental is located. I also have other considerations not listed.
- Does tenant (family) have an established cumulative 3.5X monthly rent (or more) income? 4X or more is preferred.
- Can the tenant prove income with a W2 / pay stubs / show me online bank account statements (not printed).
- If there no salary, how is income made, is it reliable, and if I need to peruse legal action, can I recover anything?
- Does the tenant currently have enough in savings to pay for rent, deposit, moving, and a little more for other life costs?
- Does the tenant have reliable income or a history of periods of unemployment?
- Does the tenant have pets? What kind? How many? How big?
2. I post my basic requirements in my listing. I also verify the interested party understands them when they contact me: by phone, email, text, IM, or whatever. I encounter a high percentage of applicants don't qualify, but still express interest. Its in your best interest to weed these out quickly as they will chew up your time for nothing. I have developed my requirements over years of personal experience and seeing the good and bad that comes with it. You may get discouraged and be tempted to lower your standards. Don't lower your standards as you will be unhappy with your tenants. You are better off lowering your rent to get a good tenant.
If you find a "good" property manager, you can follow their process and learn from them. One mistake these days can cost you thousands of dollars in tenant causes issues.
Investor · Clifton, TX · Member since 2016 · 69 posts · 14 votes
6y
@Blake West I have 14 doors that I self manage. I also use Tenant Cloud. It’s a free app, but you can pay to use some other features.
If I’m out of town I will get someone to place a rental sign at the place for me and I get a secondary number for my iPhone (sideline or iPlum are apps I use). They both allow you to to automatically send a text if someone calls. In that text I’ll give the cozy link with the pics and info. I also list the rental requirements, bedroom/baths, and rental amount. If people are interested I tell them to reply with their name.
After I get a few interested parties I’ll have an open house for a 1 hour period. That way people see others are interested in the house and will create some urgency. With COVID-19 that may need to be adjusted. I’ve used the real estate agent that brokered the purchase to host this normally.
If people are interested they fill out the application on the cozy link
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
6y
You can hire a realtor to list and show the home for you. They don't have to be your property manager. This is common for my investors, most of whom self manage their properties. We list them, show them, gather the applications, sign the lease with the tenants and then turn it over to the owner for property management. We let the owner do the credit and background check and any due diligence on the tenant. Be careful here of amateur advice you get, for example our Texas Association of Realtors lease is only valid if used by a licensed realtor. It says that in the lease. Use it on your own if you're not a realtor and it then likely unenforceable. Chances are you will never have a problem, but then when you do, you'll have wished you did something different.