The rental market has changed considerably over the last few years. These changes are mostly due to the poor economic conditions and the slumping housing market. These changes have forced many homeowners to become “do-it-yourself” landlords. There’s noting wrong with homeowners becoming landlords. Many have done it very successfully. But many have failed miserably also. If not done right, being a landlord can become a nightmare. For those that are interested in taking on this daunting task I have 5 very important basic guides to keep in mind when renting your property out.

Set the correct rental amount

Do your homework. Use some of the many free internet sites that list rentals like craigslist. Drive around in your local neighborhood and call some of the other properties that are up “For Rent” and look through your local newspaper to get a reasonable rental rate for your property. Remember you expenses do not set your rent the market sets your rent. When determining a rental price be sure the property you are comparing to is the same bedrooms and baths and are very similar in square footage and amenities.

Screen your applicants thoroughly

The screen process is the most important step in getting a good tenant. No mater how nice they are when you meet with them, no matter what story they have as to why they need to rent your property, you must properly screen each applicant. Do a credit check, verify employment and income, check their personal references and consult with their current landlord.

Use the correct lease agreement

First you need to decide if you want to do a month to month or a yearly/multi-year lease. This decision will affect who will turn in an application to rent you property. Month to month tenants are more transient while yearly/multi-year lease holders tend to be more permanent. Make sure the lease agreement you use fits your rental properties needs. Make sure it is not to vague and contains all the important rental issues for your situation. There are many different lease agreements available online and in books. The more it contains the better off you will be in the long run. Make sure the lease agreement you choose is specifically designed for use in California.

Do a thorough move-in

A thorough move-in will save you a ton of headaches at move out. The best procedure is having the tenant fill out a move-in/move-out report as you go through the property inside and out. Have each party sign and date the report and provide them with a copy by mail. This documents the condition of the property at move-in and is use at move out to help determine the amount of the tenants security deposit refund.

Keep good tenants happy

You must consider your tenants as customers. After all this is a business. Keeping your good customers happy will make them want to stay longer. Responding quickly to their calls, staying on top of maintenance issues, resolving them quickly and offering a gift card for paying rent on time for several months in a row will go a long way towards keeping a good tenant happy.

These are some of the basic guides that all homeowners should know when becoming a landlord. Obviously we just touched on each of these subjects and there are many more. If this process seems like something you can handle, great. If not, please get the help from a qualified local property management company.

Written by

Kent Forsythe, kforsythe@superiorpropmgmt.com

California Broker #01096430

Superior Property Management

www.superiorpropmgmt.com

(877) 308-7368