| In the first article you started looking into | | | | comprehends "quiet enjoyment" words, in my |
| managing your investments yourself as a | | | | opinion. We believe we can train people to |
| possibility. It is just a matter of knowing how to | | | | become good tenants. |
| do it. Qualifying the potential applicant over the | | | | Renting apartments to good tenants is easy. |
| telephone saves time and money. Evaluating the | | | | Take the money and give the keys to good |
| renting applications is one of the most important | | | | tenants. |
| parts of the business of renting apartments. How | | | | Some are like that, but every tenant becomes a |
| you will recover from your mistakes or control | | | | good or better tenant if you spend a few |
| the damages to property comes later. | | | | minutes and explain how you expect him to |
| The renting applications are your tool to use in | | | | operate the utilities and appliances. |
| approving tenants. You did a good job qualifying | | | | Showing where the thermostat is and how it |
| over the telephone and interviewing the applicant. | | | | works or where the TV antenna plug is does not |
| Now you have to check the information. Is it all | | | | require a lot of conversation. It creates a |
| true? Not always everything is true. Some people | | | | precedent, you the manager speaks and the |
| take chances and lie to you. So, you at the | | | | tenant pays attention. Some want to watch TV in |
| minimum have to: | | | | the bedroom and I make a small hole in the wall |
| - Run a credit report. The credit report is showing | | | | for the cable. |
| how that applicant takes responsibility for bills and | | | | Renting apartments is the easy part, and |
| life in general. The rent bill is the biggest for many. | | | | managing the good tenants is fun. |
| A good tenant credit report should have a score | | | | At lease signing time we charge the first month |
| of 600 or more. There are different personal | | | | rent and the Security Deposit. We do not make |
| situations to deal with: 1. If no credit, check the | | | | application and renting too easy for obvious |
| potential applicant' previous and current employer | | | | reasons. Some landlords charge in addition to that |
| for work attitude. 2. Self employed and no credit, | | | | the last month rent. Usually, we do not accept |
| good luck, it is your risk. 3. Bad credit, a lot of | | | | personal checks: "No checks please. The payment |
| medical collections, good job history, you may | | | | is made with cash or money order in the business |
| consider these renting applications on a case by | | | | name". For tenants with good credit we accept |
| case. 4. If not so much credit history because | | | | checks. |
| most payments are in cash, and there is also | | | | At that time I instruct the tenants and |
| some utilities bills collection, watch out. You always | | | | demonstrate to them how the heating, air |
| can say: "Sorry, because the bad credit at this | | | | conditioning, garbage disposal, entry door locks, |
| time, your rental application is declined". If you | | | | and smoke detectors work. Also I show where |
| can't say "no" when you have to, you may say | | | | the following are located: the commercial garbage |
| that your partner or the owner said "no". The | | | | container, the fire extinguisher, their mail box, |
| applicant will understand. | | | | common storage space, etc. |
| - Check employment with pay stubs, look at | | | | Assigning the parking place and telling where their |
| Year-to-date amount, call the employer for length | | | | visitors may park is very important. This way you |
| of employment if needed. If the work history of | | | | avoid creating tenant to tenant problems. |
| less than one year on the current job or 3 or | | | | Also, we give them a "moving in list" for things |
| more jobs in the last two years that is telling you | | | | that are worth mentioning in the first week. See |
| something is not good. Some portion of the total | | | | the Forms section. For every signed document |
| income must be garnish able in the event the | | | | we provide a copy to tenant. |
| tenancy ends on bad terms and you need to | | | | I let them know that, by 23-25th of the month, I |
| have some means to collect the damages. | | | | provide at each door, self addressed business |
| - Total net income must be at least three times | | | | envelopes to receive the money order for rent in |
| the rent. Use a security deposit based on risk | | | | our business P. O. Box. I do this for the tenant's |
| factors; one month and half rent is a good target: | | | | convenience, it is not a big deal for me, but it |
| I use one month rent and I think I made it too | | | | shows some discipline from my side and that I |
| affordable. | | | | expect the same from them in this process of |
| More things to consider: Is the tenant a cigarette | | | | renting real estate. |
| smoker? What kind of pet he/she has? If the | | | | The late rent payment situation is happening even |
| tenant is weighting about 350 pounds and your | | | | to best tenants. I understand situations when the |
| vacant apartment for rent is at the 2nd floor you | | | | tenant calls before the first of the month, and is |
| may think twice if he/she does not. | | | | promising to pay in two weeks. I wait for that |
| The key to avoid accusations is to evaluate all | | | | person to work through his/her financial problem. I |
| renting applications by the same criteria. | | | | am a risk taker, all entrepreneurs do that. I do |
| There are "New Resident Checklist" forms for | | | | not want to make the renting application process |
| renting applications based on points with financial | | | | too easy, even when competition ads scream |
| selection criteria, reliability/ cooperation criteria | | | | "free rent first month" or "no deposit" in our local |
| (how they speak and present themselves), rental | | | | newspaper. |
| stability criteria (rental history). | | | | By the way, who is in control of renting in the |
| A good tenant is paying always on time, takes | | | | real estate business? Ultimately, the owner is or |
| care of the apartment, is friendly and | | | | should be. |