Landlord Tenant Screening

As a landlord, you do everything you can to encourage people to become new tenants. You entice would-be tenants with move-in specials, temporary reduction in rent prices, and other promotions in the hopes of adding to your second family. Then, one day, you get a visit from a potential new resident. You're encouraged as he tells you that he's moving his entire family with him as he starts a new job in the area. Then he says, "By the way, we also have two dogs. Do you accept pets here?" This query could put a smile or a frown on your face. Indeed, it's the one question that every landlord has to address at some point – will you accept pets on your property or not?

This question creates an interesting internal debate because you fully understand both the pros and cons of allowing four-legged and other creatures on your property. But you can also understand the renter's viewpoint as well. For pet owners, furry friends are not simply extensions of their family – they are family. Additional stress and headaches occur for them with each property that tells them that their pets aren't allowed. There are so many factors to consider when answering this seemingly simple, yet significant, question.

Here are some of the benefits of allowing pets on your property:

1) Larger tenant pool: With so many pet owners looking to rent these days, you get a bigger pool of would-be tenants to choose from if you allow pets, which can help you pick the right tenant more easily. When you have more options in terms of tenant screening, the odds that you can find a renter that you feel very confident will pay on time every month increases. 2) Higher rent: You can usually charge higher rents to pet owners because you know that these tenants will have fewer options for where they can live. In most cases, this could mean a few additional hundred dollars. 3) Longer tenancy: Residents with pets tend to stay longer in one place because they understand their choices are limited as far as pet-friendly properties. Also, they tend to be happier because they don't have to worry about whether their pets will be safely sheltered. There are so many fees associated with getting a new renter in place: there are often realtor fees, home improvement fees, tenant screening fees, etc. It's incredibly beneficial when your tenant stick for the long run.

Here are some of the downsides of allowing pets on your property:

1) Property damage: Pets can cause a wide array of damage to your property, including chewed up carpets or stained floors, scratched furniture, and strong pet odors. In many cases, you won't even be aware of these damages until a resident moves out.

2) Liability: You need to be prepared for the possibility of another tenant complaining that someone else's pet attacked them. Many people need hospitalization from dog bites every year.

3) Community disruption: Neighbors may find that someone else's pets are disturbing their peace. If not dealt with, some people may simply move out rather than continue dealing with a constantly noisy animal.

So the questions remains--should you allow pets or not? You need to weigh the previous considerations carefully before making a final decision. Also check your insurance coverage to see if you're covered for pet liability. It's also a good idea to include a specific pet policy addendum in your lease for each tenant. Remember, every family is different. You may find that you're willing to add not just two-legged, but also four-legged, members to your second family.

This entry was posted on May 26, 2015 at 7:41 PM and has received 6759 views. There are currently 0 comments. Print this entry.

In becoming a landlord, you capture a tiny slice of the American dream. After all, real estate ownership remains one of the best investments a person can make. Still, this privilege also carries tremendous responsibilities as well. As a property owner, you're responsible for the overall upkeep of your property. One important part of this upkeep is finding the right tenants to occupy your property. You would certainly want to engage in thorough tenant screening: conduct a background check and credit check, obtain reliable references (including from former landlords), and learn about current incomes and overall financial situations of potential tenants. Although you weigh each of these considerations and then carefully select your tenants, there are bound to be times when tenants don't quite live up to the expectations that you've set. Even if you use a tenant screening service, every landlord will invariably face a tenant that doesn't pay rent on time, or at all, each month.

It's incredibly distressing as a landlord when you don't receive a tenant's rent regularly each month. You meticulously set up your lease and property rules based on the understanding that you'll be compensated monthly as agreed upon by you and your tenants. Still, for whatever reason, some tenants miss the rent due date. You might be inclined to let it go if it's a one-time occurrence. But what happens if someone consistently misses the due date month after month? Here are a few ideas on how to get your tenants to pay their rent on time.

1) Early bird discounts:

Your tenants might be more motivated to pay their rent on time if you set up an early bird discount program. Under this program, they'll receive a discount on their rent if they pay early or on time. After all, who doesn't appreciate a good discount?

2) Auto pay:

By having your tenants sign up with an electronic auto pay program for their rent, you know that you'll receive the rent money every month as expected. Plus, it helps those tenants that lose track of dates easily.

3) Prizes:

You can reward those residents who consistently pay their rent on time with prizes. You might hold a community raffle and randomly pick out the name of one of your more conscientious tenants and present them with some type of reward. While these ideas may encourage some tenants to be timely with their rent checks, they may not be sufficient for others. In that case, your lease should clearly spell out the penalties for missing the due date. These penalties generally come in the form of late fees and other miscellaneous charges. Keeping in constant communication with a tardy tenant can sometimes help the situation. You should only consider eviction as a last resort when all other options have failed.

Being a landlord can sometimes feel like riding a roller coaster. Having a tenant that doesn't pay rent on time can make this ride seem even bumpier. Still, with some creativity and tact, you can get even the most troublesome tenant to pay rent by the due date. This will not only make the relationship with your residents better, but it will also help smooth your nerves--and your wallet.

This entry was posted on May 26, 2015 at 7:32 PM and has received 50933 views. There are currently 0 comments. Print this entry.