5 Steps to Renting a Property

Are you getting ready to rent your property, but feeling overwhelmed with all that needs to be done? Here are 5 steps to renting a property:

1. Prepare the Property for Rent

2. Set Rent and Market the Property

3. Screen Potential Tenants

4. Prepare and Sign Lease

5. Move-in and Ongoing Inspections

1. Prepare the Property for Rent

The first step is to prepare the property for rent, whether or not you are renting it furnished, unfurnished, or with special amenities like a refrigerator or washer and dryer, the property should be delivered clean, in good repair, and clutter free.

First impressions matter!

One key factor is setting expectations with a tenant about the level of cleanliness and condition you expect the property to be maintained and returned. Take the time to properly clean and do minor repairs: patch, paint, repair, and replace as needed.

It is critical to document (in writing and photos) the move-in condition when the tenant eventually moves-out and to monitor normal wear and tear during annual inspections. I'll discuss the Security Deposit in a later post, but you will need to provide proof if charges are disputed by the tenant at move-out.

2. Set Rent and Market Property

Rents are something you actively monitor in and around the community the property resides. As you can imagine, setting rents too high will reduce or eliminate potential renters, while setting it too low will reduce the return on your investment. There is a sweet spot and that requires a comparative analysis. One thing to keep in mind with rent setting is that there are Federal, State and even local laws regarding how rents are set in the community. Be sure you are aware of all applicable laws and regulations in your area.

Be aware of Federal, State, and local laws when setting rent and marketing a property.

Once you have set rent, you can market the property. Traditional methods included signage (still highly effective), and news papers. Many choose sites like Zillow.com and Apartments.com to digitally syndicate rentals nationally. You will need to describe and photograph the property in a way that entices prospects, but doesn't mislead or run afoul of Fair Housing laws. Post the most up-to-date photos and don't make claims about the property that aren't true.

Provide up-to-date photos and accurate and objective description of the property.

3. Screen Potential Tenants

You've started getting calls or even meeting people in person at the property. Be prepared to provide information about the property, the rent, security deposit, pet deposit, lease terms, provided utilities, and the amenities, facilities, and the surrounding community and what it offers.

Be prepared with your Rental Application for prospective tenants to fill out and begin the rental process. As part of the application process you will need to collect a credit report, record of income, references, and rental history if possible. Once you have gathered this, you will need to screen each tenant.

Follow the law and screen prospective tenants equally and fairly.

Keep in mind, that screening is one of the most critical aspects of being a landlord. You are giving the right of possession to another person for a property that might have taken decades to acquire or at the very least is one of the largest investments of your life. It's a big deal and an amazing accomplishment, but in determining who qualifies you must ensure you are following the law and applying them equally and fairly across all applicants.

4. Prepare and Sign the Lease

Like rental applications, leases are legal documents. Do not try to write your own. There are plenty of areas where you can take cost savings short cuts, leases shouldn't be one of them. Find a reputable organization, who provide up-to-date leases that comply with the latest housing laws. Many of these organization provide auto-populated leases and digital signature.

Don't write your own lease!

Once the lease is signed, collect the first months rent, security deposit, and applicable pet deposits; automatic payments is an excellent approach to collecting rents. As a general rule, never take partial rent. An installment for security deposit is not unusual as this can be a large lump sum, for example over 2 or 3 installments.

5. Move-in and Ongoing Inspections

Once leases are signed and money has exchanged hands, you perform the move-in walkthrough and key hand-over. Familiarize your tenant with the workings of the home, utilities and applicable shutoff, and operation of amenties and fixtures.

A walkthrough and review of the lease obligations is essential when the tenant takes possession of the property.

This is a great opportunity to reiterate aspects of the lease like whether or not the tenant can paint walls, what they can affix to walls and how, and if they can smoke in the home. Speaking of which, familiarize your tenants with the smoke and carbon monoxide alarms by demonstrating they work properly.

There are lots of great resources available for landlords and rentegic will help you navigate the complicated landscape of rental property. We specialize in rental startups, building simple low cost business solutions to automate processes, provide tenant screening services, and help will-be landlords get their bearing quickly.

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal advice. I am not an attorney or legal professional. While I strive to ensure accuracy, the content may not reflect the most current legal developments, and it is not a substitute for legal counsel. You should consult a qualified attorney for advice regarding your specific situation. Use of this information does not create any attorney-client relationship and does not offer any guarantees, assurances, or protections from legal liability.