All Forum Posts by: Ron Nir

Look outside of your area, I have many California investors coming to me for investment opportunities here in Las Vegas. May be time to branch outside of your state.

Utilize a tenant application. You can’t begin to determine a prospective tenant’s fitness to rent without asking the right questions. Asking for personally identifying information is key, but you’ll also want to request references, previous landlords, and proof of income. In addition, ask about important factors like pets, children, smoking, and criminal history.

● Screen your tenants.   Once you receive an application, run credit checks, background checks, research the information provided on the application, and take the time to contact each and every one of their references and previous landlords; it’s the best way to learn all you can about how they treat a property, directly from the source.

● Build high expectations. You’ll want to require a verifiable income of at least three times the monthly rent to ensure your tenants can continue to pay rent. If you want to avoid pets, smokers, or other factors, say so and stick to your decision.

● Hire a property manager. A property manager will act as an essential link between you and your property. Your property manager will collect rent, ensure maintenance, give attention to problems as soon as they crop up, and enforce the details of the rental agreement.

● Procure landlord insurance and rent guarantee. As you’ve discovered, even when tenants seem like decent people, you can still end up with tenants from hell. Landlord insurance can cover the building, contents, accidental damage, and even cover the rent if your tenants stop paying. 

Avoid paying dearly for damage and missing rent caused by the tenants from hell by following the steps above.

Very interesting insights, Eric! 

After all, there’s nothing worse than placing a problem tenant in your rental property. When you do that, you risk property damage, late or non-payment of rent, and even lengthy court battles.

But would you ever approve a tenant without having ever met them?

Some traditional property owners would respond with a resounding “no;” Meeting with a tenant in person is a great way to really tell whether they’re a good fit for your rental. However, by using a reputable Vegas rental property management company, many international investors have found success.

Today we’re going to share with you the best ways to find high-quality tenants without meeting them face-to-face. Trust us, it can be done if you approach it the right way. So, let’s find out how to do just that.

5 Tips for Screening Tenants You’ve Never Met

1. Understand Where the Risk Lies

Of course, there is always going to be an element of risk when you screen and approve a tenant you’ve never met before. In fact, many people will say that it was only after meeting a tenant face-to-face that they decided to decline their offer.

However, rental property owners are human just like anyone else. And while gut instinct has its place in the world, it has been known to be wrong from time to time. So, relying solely on the energy you feel when you meet a tenant in person to decide whether to lease your property or not isn’t rational.

Remember, it’s the tenant that carries the most risk when they agree to rent your home without having met you or seen the place. And if you do things right, you’ll ask your tenants for an application and holding fee when they show enough interest.

Anyone that’s willing to hand over that kind of money to someone they don’t know takes the bigger risk. It also shows they are serious about leasing from you and are likely to be decent tenants.

2. Be Strict With Your Process

Just because you’ve decided not to meet with tenants doesn’t mean you should become lax with your entire screening process. If anything, the tenant screening process you follow should become stricter.

Here are some best practices to follow during the vetting of prospective tenants:

• Understand the demographics of the area and determine an average household income to compare with your rent rate
• Choose a minimum credit score you’ll accept
• Run credit and background checks on every single tenant that applies and evaluate the results
• Take into consideration the security deposit during employment and income verification

The stricter your criteria, the better your chances are of placing a good tenant in your property. Of course, you never want to discriminate against protected classes while screening tenants. But having a threshold for what you will and will not accept is perfectly fine.

3. Follow up on References

It’s important you require three types of references from all prospective tenants:

1. Previous Landlord: find out whether your potential tenant gave their last landlord any issues. This might include late rent payments or property damage. A landlord will happily tell you whether a tenant is good or bad because they have no personal attachment.
2. Employer: how your tenant acts at work can be a good indicator as to what kind of person they are. Again, an employer is likely to remain objective and honest about a tenant’s conduct.
3. Personal: though no sane tenant gives the number of their biggest foe as a reference, it’s good to round out the screening tenant process with a personal reference.

If you use Vegas rental property management to help screen potential tenants, they'll require the references and follow up with them for you. Not to mention, even if your property manager requires a tenant to physically hand in an application, you won’t have to be there during the drop-off.

You will, however, have a say in whether to approve the tenant or not, even without having met them in person.

4. Learn the Red Flags

You can identify many red flags in a tenant without meeting them face-to-face. In doing so, you avoid placing a bad tenant in your property and running into major issues later on.

Here are some of the most important red flags to become familiar with:

Tenants that have nothing good to say about their previous landlord (and place all the blame elsewhere)

Unstable employment or income

Those with prior evictions, regardless of the explanation

Any type of criminal background

People who have moved many times within a small period of time

Anyone who has been living with a friend or relative without just cause

Knowing the signs that make up a bad tenant will save you time and money in the long run. Plus, it will help you choose the tenant you want in your rental.

In the end, your prospective tenants will either pass or fail your screening process. Meeting them in person won't make a difference either way.

5. Use Rental Property Management to Help

Are you in need of Las Vegas property management?

If you find yourself struggling to screen tenants thoroughly, it’s a good idea to invest in a reliable rental property management company to help.

An experienced property manager will be able to properly screen and place high-quality tenants in your investment properties. Plus, they'll take the pressure off you to meet your tenants in person.

Simplify the Process

If you want to spend less time arguing with renters over timely payments, make paying the rent as convenient as possible. Offer online payment options, or, better yet, automatic ACH debits from a bank account each month. Another possibility – though admittedly less popular – is taking 12 post-dated checks at the time of lease signing – one for each month over the course of the lease term.

Automation can also help increase the likelihood of on-time payments. Create a reminder system or send push notifications via an app to renters to remind them of the date. When make paying as convenient as possible, you increase your likelihood of receiving those payments on time.

Screen Each Applicant Thoroughly

Though most property owners understand the value of the screening process, some are not as thorough as they could be in the interest of expediency or convenience. Be sure to check references, including employer or past landlords. If a candidate is young and does not have sufficient credit history, consider requesting a cosigner as an extra layer of security. Finally, ask for bank statements or pay stubs to ensure that a candidate is in a financial position to reliably pay the rent. Remember, under the Fair Housing Act, you must use the same screening process for all applicants.

Increase Communication With Late Payers

If the late payment of rent becomes habitual, take steps to increase the communication with the tardy tenant. Tailor reminders and, if possible, find out why the late payment is occurring. There may be a special circumstance that justifies adjusting the timeline so a tenant pays on a different day that works with their budget.

What Are the Benefits of Having a Property Manager?

Having a quality property manager can take the hassle out of owning and renting a property. The benefits of having a property manager are numerous – for example, they take on all aspects of the screening and rent collection process. A top-notch tech-based PM company will have a  tenant management system that allows applicants to view reminders and report problems with ease. 

Failure to Properly Screen Tenants

To secure quality tenants, a rigorous screening process is necessary. Obtaining a credit history is important, but so is getting references from employers and previous landlords. Proof of ability to pay, through pay stubs or bank statements, is also essential. A thorough tenant screening can help minimize the risk of delinquency, but remember that you must use the same process for each prospective tenant commensurate with the Fair Housing Act.

Not Having a Preferred List of Contractors

No matter how well you take care of your property, a repair or other issue will inevitably arise. When it’s time to complete repairs, having a preferred list of contractors is convenient and will save you time on the vetting process. When you need emergency repairs, for example, you may be stuck with the first available company, who may charge high fees or do a less quality job. Having a list of professionals with which you are familiar will save you both time and money.

Lacking a Consistent Schedule

Experienced property owners know the value of being proactive in both tenant management and maintenance. If you want to avoid a crisis and ensure you have a steady cash flow from your properties, take steps to make a monthly schedule. Include which maintenance tasks you will complete that month and develop seamless processes for resolving tenant issues. This will save you money on costly repairs and keep your tenants happy.

How Property Management Services Can Help

The most experienced property owners realize the value of having a quality property management service. A good PM company use a thorough tenant screening process and help you find quality tenants that stay in your property for the long term.

Encouraging lease renewals is an essential aspect of your income property’s success. Fortunately, there are a few things you can do to encourage lease renewals, increasing the likelihood of securing long-term tenancy.

Keep an Open and Honest Dialogue

Some tenants will naturally be on the fence about lease renewals, whether it’s because of price or other factors. If you want to offer your unit at a fair market price – and that includes increasing rent to reflect demand – then you definitely should tread lightly. On one hand, your profitability is at stake, but, on the other, you want to retain your responsible tenants. If you do choose to increase rent at the end of the lease term, make sure it is reasonable (no more than 3-5%) and write it in a warmly worded letter.

Avoid Auto Renewals

In some cases, an auto-renewal kicks in and makes a lease month to month at the end of a rental term. This is not necessarily a bad thing, especially if you are not planning on changing your prices. However, it gives the tenant full control over when they want to vacate the premises, which could lead to scrambling to fill a vacancy on the slowest times of the year, such as November and December. Rather than making your lease at an auto-renewal, make a point to contact each tenant toward the end of each lease term to troubleshoot issues, renegotiate terms, and have them sign a brand new agreement outlining any changes in terms.

Work With a Property Manager

Renegotiating lease terms and working with tenants requires an experienced hand. If you are already juggling your job, home, and other responsibilities, the prospect of meeting with tenants and renegotiating leases can be daunting. Property managers are ideal for taking over all aspects of renting out your investment properties, including tenant screening and renewals. 

But before you hire a property manager, do your due diligence look for a PM that can guarantee your income through an innovative rent guarantee plan and safeguard your Net Operating Profit. They should be tech-driven and transparent with best practices.  

@Chad Swanson That's great! Give us a call and we can take it forward.

To ensure your rental property’s longevity, make sure to complete these maintenance tasks each fall season.

Clean Your Gutters

Storms and falling leaves all fill up in your gutters and can affect the drainage around your property. Over time, this can lead to water damage around the exterior foundation. Regular gutter cleanings are an essential aspect of your fall maintenance, protecting your drainage systems from the winter precipitation ahead.

Clean Your Yard

Fall brings all manner of debris into your yard, from falling leaves to twigs, sticks, and other debris. Cleaning your yard during the fall will help ensure your lawn grows back lush and green again in the spring.

Winterize Your Pipes

A burst pipe in the middle of the winter can lead to unwelcome expenses and vacancies while completing plumbing repairs. Fortunately, taking a few simple steps to winterize your pipes before the cold season begins can effectively ward off any cold-weather plumbing issues.

Store Outdoor Furniture

Outdoor living spaces can be a major selling point for tenants. If you have your own outdoor furniture on your rental property, remember to cover and store it in a weather-proofed building to prolong its life and usefulness. Sun washed, rusted furniture does not market well to potential future tenants.

Check All Weather-Stripping and Insulation

Feeling the gusty winter air coming in through cracks in windows and doors is unpleasant for your tenants, but it also provides another concern: if you include the cost of utilities in your rent, you could be losing a lot of money through inefficiency. Weather-stripping provides a simple way to insulate your home against cold weather, so make sure to check it each year for peeling or cracking, and replace as necessary.

Clean Chimneys and Fireplaces

If you have a chimney or fireplace on your property, neglecting cleaning can pose a safety risk. A buildup of creosote can be deadly, so it’s essential to clean the chimney or fireplace at least once a year. Fall is the perfect time to do it before people start building their cozy winter fires.

The Benefits of Having a Property Manager

Fall brings with it a long list of maintenance tasks – when you own your property as an additional property stream, it can seem daunting to tackle these on top of your regular job and own home maintenance tasks. A property management company can take on all aspects of owning a rental property, from collecting rent and screening tenants to maintaining the property and resolving potential issues.

What Is a Fourplex?

A fourplex is a type of multifamily home. As the name implies, a fourplex has four units inside. The main benefit of a fourplex is that it is the largest multi-family apartment home that you can own while enjoying residential zoning. A building with 5 units or more must be zoned as commercial. Owning a fourplex has several distinct advantages.

Why Consider a Las Vegas Fourplex?

A fourplex in Las Vegas comes with several different benefits:

● Earn more income. On a practical level, you stand to earn more income from a fourplex than you can from a single-family residence. This will significantly amplify your revenue stream and make it easier for you to recoup your original investment.

● Enjoy better financing options. Since a fourplex is zoned as residential property, you have many more options when it comes to financing. Residential properties can have down payments as low as 0-10% and have longer amortization periods.

● Get practice for bigger rental property ventures. Getting a Las Vegas fourplex can be a great way to dip your toes into multi-family property ownership and management. If you want to handle a fourplex with relative ease, you will be better suited to make investments in a larger commercial property (and thanks to the profits from your other units, you will have more to put down on a commercial building).

Las Vegas Property Management for Your Fourplex

A fourplex can provide a steady source of revenue. In Las Vegas, it is a great way to diversify your investment portfolio and increase the amount of money you can make off your building each month. The daily running of a multiplex has challenges, however, if you have a job and other responsibilities, running your own fourplex can seem inconvenient.