So You Want to be a Landlord?

Here are a few things I have learned over the years that might be helpful to you:

1) Run Credit – Look for good credit or a good reason for bad credit.

2) Check References – Check with the last 2-3 landlords to verify that they would be a good fit for your house.

3) Payment – The debt and rent payment should not be more than 1/3 of the applicant’s gross monthly income.

4) Pets & Smokers – If you allow pets and smokers, you can get top dollar in rents, but plan to repaint and install new carpet when they move out.

5) Cleaning – In my contracts I require the tenants to have the carpet, windows, and appliances professionally cleaned before vacating the premises. Also, I require that the tenants touchup the paint before they leave, although I provide the appropriately colored paint.

6) Painting – With an eggshell finish on all of your walls, you can usually scrub away most spots with 409 and a sponge, instead of repainting the entire area.

7) Colors – Use neutral paints and carpet. No matter what style of decorating your tenants might like, it will match your neutral colors. Not to mention that fancy custom colors fade and are usually difficult to match and touchup.

8) Leases – I encourage tenants to sign longer leases at a lower price. Ultimately, it is more cost effective to you to have a lower turnover rate. If they want to break the lease early, they can find a qualified tenant to take their place.

9) Deposits – The required deposit for a furnished house is three times the monthly rent. If the house is unfurnished, the required deposit is twice that of the monthly rent.

10) Contracts – You can pick up a contractual lease agreement at your local stationary store. Unfortunately my errors and omissions insurance will not allow me to provide my clients with a contract.