One thing that makes a lot of people not want to get into the rental business is because they are afraid of having really bad renters.
Many people have heard of many horror stories, including myself.
I have heard of renters completely ruining homes by ruining the carpets, putting holes in walls, pets ruining the home, and so on. I have also first hand seen things happen as well. It would be horrible to finally find a rental home, buy it, find a renter, and then for it to end very badly with thousands of dollars worth of damage.
Not all renters are bad though! You hardly hear about the good stories, but you hear about the few that went very badly. If all rental stories ended badly, then no one would be doing it. However, that is not the case. There are plenty of positive rental stories.
There are ways to try to find the best renter for you and your property.
Always make sure that you are abiding by the Fair Housing Rules. Don’t make any decisions based on the potential renter’s gender, race, choice of religion, any disabilities and so on.
Make sure you check their references.
There are many different ways to check a renter’s references. There are company’s out there that you can use, or you can do it yourself. Make sure you do a background check as well. You may be able to find out if they took care of their last place well or not.
Determine if you want pets allowed.
Many landlords say no to pets, and there is a reason for that. With animals, accidents may happen. You may want to say no to pets completely. If you do allow them, you may want to ask for an additional security deposit, or even an extra amount added to their rent each month for having a pet with them.
Ask for a deposit.
To protect yourself and your rental property, you will want to ask for a deposit from the renter. You can ask for a set number such as $500 or $1,000 (or any amount that you think is correct for the place). Or you could ask for an amount equal to the first and last month’s rent. You need to make it clear about if or how they can get their deposit back as well.
Check your city’s renting laws.
In some cities, it might be near impossible to kick the renter out if they aren’t paying or if they are just horrible renters. You might have to wait six months before you can do anything. You will want to check if the neighborhood even allows for renters as well – many do not.
Definitely check with your city and see if you are willing to risk this. I have actually seen this happen first hand where the renter lived in a home for a FULL YEAR without paying a single month (except for the deposit) because the city’s laws made it impossible to kick them out.
What tips do you have to find the best renters?