So you own an investment property, or a home that might not be selling for the value you would like to obtain, and you want to lease it. What are the important steps you need to take?
- Establish a fair rent based upon current market data.
- Have a thorough application process in which you seek, among other things:
- Credit information
- Employment history
- Previous landlord contact information
- Personal non-familial references
- Current banking information
- Follow up on all aspects of the application, insuring that you have a clear understanding of your potential tenant. Also, do they smoke? Do they have pets? How many people will be living in the property?
- Use a fair and reasonable, but comprehensive lease. Make sure there are appropriate remedies for any breach of terms, or late payment. Require the tenant to show proof of liability and contents insurance prior to occupancy. Have their monthly payments be an automatic deduction from their bank account, or use Bill Pay. Allow for regular, reasonably timed inspections.
- Probably most importantly, visit the property monthly, or every other month if your tenant proves they are worthy. It’s your asset; make sure your tenant is treating it properly. If they know you are going to be diligent in stopping by, they will likely be more diligent in their care.
McNulty Real Estate Services provides property management for a reasonable fee. We would be more than happy to help with all of the above, and then some.