Dealing with Tenants
The first thing you'll need to do after placing an ad is prepare to screen the prospective renters who respond.
Screening tenants is an aspect of landlording you might not enjoy. Work up a form for each interested person to fill out with their name, address, phone number, number of years at their current address, previous landlord, employer, and number of years on the job — the self-employed should supply tax returns for the previous two years.
You are looking for a tenant who can afford your rent and whose current landlord has no gripes. Still, you cannot in truth count on a landlord's reference. He might be delighted to see a troublesome tenant move and will tell you what a prince that tenant has been. References can be rather dicey these days, in any event, with employers, landlords, and so on being too worried about legal reprisals to say anything negative. General references are not going to be much help, either. Who is going to list anyone they think will say something bad about her?
Verify employment, at the very least, to be certain your tenant can afford your rent. Checking your prospect's credit report, while it may seem intrusive, can also tell you whether you are getting someone in a position to pay you each month or someone deep in debt. Look up “Credit Reporting Services” in the Yellow Pages.
Not allowing pets could be a hasty decision you will regret. Because some apartment complexes ban them and because many landlords will not allow them in their rental units, you stand to have a larger pool of applicants if pets are allowed. Try, if you can in your community, to secure a pet deposit of an extra $200 over your security deposit, or ask for a deposit that covers rent for, say, a month and a half. You will probably have to spend some money cleaning up after the tenants and pet leave, and you cannot count on using their security deposit because tenants often do not pay the last month's rent, saying, “Let my security deposit cover it.” At least you will have the extra half-month — or more if you can manage to get it.
A written lease is far better for you than a handshake. You can pick up a standard apartment lease from a stationery store or office supply center. Fill in all of the blanks, even if it is with “NA” (for “not applicable”).
You can add your own special clauses to a lease. For example, you might type or write, “Landlord permits this tenant to bring in his two cats, Tinsel and Doodad.” That sounds better than just “pets allowed,” a phrase that would allow your tenant to gradually acquire three dogs and four cats.
It is important to meet every potential tenant that is going to live in your building. Even if you depend on a rental service to find tenants, you should still take the time to meet your tenants.
Property ownership comes with its own pride. As the owner, you certainly think your piece of real estate is a great place to live, and you feel strongly about its upkeep. How will you react if you end up with an irresponsible tenant whose carelessness causes damage to your property?
Even though you may be upset or angry, be careful to maintain a professional attitude and act in a strictly businesslike manner. Try to avoid foolish things like leaving threatening messages on voice mail; they will only come back to haunt you.
Be aware that when you are refunding security deposits, interest is usually required to be paid to the tenant, as well as on their pet and key deposits. Failing to pay this interest will put you in jeopardy with a local tenant bill of rights and sometimes require an automatic penalty be thrust upon you at a multiple of their security deposit. Oftentimes, a receipt must be enclosed if something has been deducted from their security deposit when your tenants leave the apartment and damage has occurred.
