Originally posted by @Chelle Knijnenburg:
Hello, We put our For Rent Sign in the window and we have about 5 calls within 4 days. Unfortunately, the person who was to help me has been pulled away and I am in need of quick advice and/or guidance.
I need help, either making a decision or with the actual tenant screening process. Should I pull the sign out of the window and then find someone to help me and start all over? If so, what do I tell the 5 people who called over the weekend?
Should I hire a Property Manager and have whoever says yes to handle it? The two I interviewed want to use the standard contract without any addendums. I signed up for Smart Moves. The info I researched recommends to include addendum's such as the renter must by renters insurance, renter is responsible for first $100.00 of repairs, the garbage disposal is not covered, and more. We would like to include a 2 month buy out clause. Plus, the advice seems to lean toward visiting the possible tenant's present home.
I believe the description could help someone in the advice I seek. The townhouse is a 3-story, 1855 SF, techie town home with a 2-car garage, 500 SF of storage in a highly desirable area near many Corporate HQ's, walking distance to shopping, dining, music clubs, dry cleaner, hair salons, spas, gym, yoga, a Marriott & entertainment. Recently updated with custom paint touches throughout. Located near the tollway, I-90, and 121, 3 malls, sports stadium, and 20+ minutes to the airport. This does not seem to be the type of place that a professional tenant would fit into. So, are all the addendum's necessary in what appears to be such a great area -- or am I worrying too much?
Thanks.
Hello Chelle,
That is an excellent question! When screening for tenants it is always a detailed matter. You want to make sure you are gathering all of the information you will need to make sure they are a good fir for your property. You never want to rent to someone who will be a poor tenant!
First thing you need to do is have them sign an authorization form, which allows you to look up their credit report and do a background check. Never simply look at a credit SCORE, but make sure you look at the whole REPORT. Someone could have a good score, but owe a lot of money on collections. (I know, but it happens)
Analyze their credit report and if you feel comfortable, do a background check and make sure their criminal history checks out.
Another key factor is employment history. Make sure they have a job of course! You also want to make sure they have had the job for more than a few days. Remember their ability to keep their job (or have a steady income) will directly effect their ability to pay the rent.
Do not tell any other potentially good tenants that you have found someone UNTIL the lease is signed. You never know what may happen between being approved and the actual lease signing. Until that document is signed the potential tenant could change their mind or back out completely. I've had people disappear right before a lease signing!
In terms of Property Management Companies (speaking from experience) they can be excellent in helping you manage your property. If you do not know much about the legal side or renting or the maintenance side, it is very helpful to have someone manage it for you. If you have any questions about property management companies, please feel free to ask me.
If you have any more questions, please feel free to contact me!
Tom Ott, Smartland
Website: http://www.smartland.com
