how to be a successful landlord (i.e. right way to choose tenant and avoid problems)

[Anonymous]

Don’t love the house. Accept that it’s just a house.

Understand and familiarize yourself with what constitutes regular wear and tear. Marks on the wall, wall dings, - normal wear and tear.

Understand and familiarize yourself with upkeep that is expected - you aren’t going to be able to charge the renter to repaint or recarpet - those things are on you. Working Heat is usually a must and gets treated as an emergency but working AC might not be.

Plan to visit the property once a year. Often renters don’t want to bother the landlord with little things but little things add up.

Pets - limit yourself to small pets in a cage - hamster, etc or small aquarium - desktop size.

Applicants - be honest with yourself and believe applicants when they present themselves and how they present themselves. If you are hesitant when you meet them don’t bother going forward. Don’t fall for hard luck stories and don’t rent to anyone who has to bring a friend/pastor/etc to vouch for them. Someone who just makes barely enough to qualify to pay the rent - accept if you rent to them they will be late at some point and may never catch up.

[Anonymous]

My best advice is to emotionally let go of your property. It is not your former home anymore, it is the tenant's home. The tenant will not make the same choices you would and (within reason) that is ok. I have seen so many owners get bent out of shape because tenant put nails in the wall, tenant always has bikes on lawn, tenant isn't friendly with neighbors ...

[Anonymous]

Anonymous wrote:Find a middleman, a rental agency. Big real estate companies (the ones you've heard of) often have a rental side.

These rental real estate employees manage rental properties.

They market your rental property, show the property, do due diligence on a potential renter (credit checks, etc.), handle all contracts and paperwork, and once an upstanding tenant is living there the rental agency side serves as the renter's contact for any issues. You never have to deal with the renter directly.

The rental agency also contacts you in case of any repairs to let you know what needs to be done, the contractor they will call, and the amount of the repair. You get final say. They deduct the repairs from your next rent check. You receive a copy of the repair statement for your records.

The rental agency deducts a small percentage from your monthly rent check (they also collect the rent from the renter for you) as their payment.

They also handle contract re-upping. If renter moves out, they put up the "for rent" sign and get about re-renting the place. They show it, market it, contract it, rent it. With your approval as owner, of course.

Going this route takes all the headache away. All you have to do is say yes or no. Highly recommend.

This was exactly the what our worst ever experience was though. IME, it seems like the least successful agents must be assigned to rentals. It’s probably the only way they get listing contracts because it’s in the fine print that if you sell, you have to use them. They were unprofessional, inconsiderate, and completely lazy. Big name agency.

[Anonymous]

Anonymous wrote:Find a middleman, a rental agency. Big real estate companies (the ones you've heard of) often have a rental side.

These rental real estate employees manage rental properties.

They market your rental property, show the property, do due diligence on a potential renter (credit checks, etc.), handle all contracts and paperwork, and once an upstanding tenant is living there the rental agency side serves as the renter's contact for any issues. You never have to deal with the renter directly.

The rental agency also contacts you in case of any repairs to let you know what needs to be done, the contractor they will call, and the amount of the repair. You get final say. They deduct the repairs from your next rent check. You receive a copy of the repair statement for your records.

The rental agency deducts a small percentage from your monthly rent check (they also collect the rent from the renter for you) as their payment.

They also handle contract re-upping. If renter moves out, they put up the "for rent" sign and get about re-renting the place. They show it, market it, contract it, rent it. With your approval as owner, of course.

Going this route takes all the headache away. All you have to do is say yes or no. Highly recommend.

You must be an agent. Their contractors always charge top prices.

[Anonymous]

Anonymous wrote:As a long time renter our big red flag is landlord. We only rent places with a management company. We rent SFH in the 5-7k range for multiple years (currently in rental for 5 years). We will not deal with a landlord directly. We have in the past and they lead to problems due to their feelings rather than referring to the contract they signed.

We’ve done the same at the same price but had opposite experiences. Property managers doing cheap, sloppy repairs, rental agent who treats tenants like a problem because they have a life and can’t accommodate her no notice demands, and owners who panic because they’re so removed and believe the unprofessional agent.

On the other hand, we became friends with every owner we rented from directly.

[Anonymous]

I have not visited my rental property in six years. I really don’t care what they do. I just assume will be trashed. I rented it fully furnished.

I have insurance, contents insurance, deposit. I am praying it is fine.

Don’t encourage renters to call you and don’t get a managing agent.

[Anonymous]

It’s getting worse and worse every year

Used to be great. Totally not profitable any more due to regulations, inflation, taxes, the way people are today.

Buy a REIT and let the pros with lawyers on staff pay you a fat dividend.

[Anonymous]

Anonymous wrote:
It’s getting worse and worse every year

Used to be great. Totally not profitable any more due to regulations, inflation, taxes, the way people are today.

Buy a REIT and let the pros with lawyers on staff pay you a fat dividend.

“It was great when you could be a slumlord but now you have to work for your money”

[Anonymous]

Great start!
I own a rental house and manage it myself, it really has been pretty smooth. I'll ignore those who say a landlord managing a property is a problem, we treat the rental as our own and are quick to address and resppond to any problems. All our tenants have shared that most rental management companies are not very good to deal with.

Follow your gut also in regards to picking a good tenant and always be sure to actually meet them in person. When showing the house do they seem to like it or are they already complaing about things? The complainers are a red flag for me. We prefer families over groups/students it's just easier to manage and usually brings more stability.

Depends where you live but most jurisdictions have sample rental templates with all the needed legaleeze to use. Montgomery County has one and other necessary forms that one is obliged to give a tenant. Very user friendly and then simply create an addendum if you have additional things. You need to pull a rental license and a lead inspection at least from Montgomery County. Check your homeowners insurance and let them know it will be rented.

Make sure the house is clean and move in ready-everything should be in working order. Doors-new locks, plumbing, blinds, kitchen appliances, laundry

Anonymous wrote:We are buying a new house and are contemplating renting out our current house. I put together some advice that I've picked up by searching this board, but I would appreciate any other helpful input. Thank you.

1. obtain credit check, references, criminal background check, and evidence of income or funds (W2 for past two years, two most recent paystubs)
2. get a deposit equal to one month's rent
3. do not explain reasons for not accepting the application; do not deny application while showing property; always say there is other interest
4. advertise on military by owner (other good platforms to find solid leads?)
5. get a good contract (where can I find some good templates?)
6. get a handyman on speed dial
7. do I need to buy additional insurance?
8. what are some things that we should fix (e.g. fix a leaky faucet, have windows washed) and should not improve (e.g. no need to paint doors if they are decent, no need to replace windows if existing windows are functional)?

Thank you.

[Anonymous]

Anonymous wrote:Make sure the lease specifies that drain clogs and garbage disposal jams are paid by the tenant (because they are always caused by the tenant).

Retire the tenant to keep the yard maintained, or to allow you to send a landscaper regularly.

Avoid roommates if you can -- they will become a never-ending cycle of chasing rent payments, people cycling through the house and absolutely zero cleaning.

Avoid tenants whose parents come with them to see the place. You are legally allowed to refuse to rent to tenants who need mommy and daddy to cosign to qualify.

I agree with not renting to lawyers -- they will send back any standard lease form marked up with ridiculous changes. But they are hard to avoid in DC.

Make regular, announced in advance visits to the place to change air filters, check the furnace, whatever. You need to see inside more than once a year. I once visited and found two twin mattresses laid out on the living room floor, along with personal effects piled up on the window sills. The two roommates who rented the place (a 2BR/2BA TH) had decided to lower their costs by adding two more roommates. That lasted exactly a day.

I don't know where OP's property is.
Virginia law requires landlords to give at least 72 hours notice for routine maintenance. I'd be surprised if any state allows less than 24 hours, except in the case of an emergency (and changing an air filter is not an emergency.)
Tenants have the right to privacy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Make sure the lease specifies that drain clogs and garbage disposal jams are paid by the tenant (because they are always caused by the tenant).

Retire the tenant to keep the yard maintained, or to allow you to send a landscaper regularly.

Avoid roommates if you can -- they will become a never-ending cycle of chasing rent payments, people cycling through the house and absolutely zero cleaning.

Avoid tenants whose parents come with them to see the place. You are legally allowed to refuse to rent to tenants who need mommy and daddy to cosign to qualify.

I agree with not renting to lawyers -- they will send back any standard lease form marked up with ridiculous changes. But they are hard to avoid in DC.

Make regular, announced in advance visits to the place to change air filters, check the furnace, whatever. You need to see inside more than once a year. I once visited and found two twin mattresses laid out on the living room floor, along with personal effects piled up on the window sills. The two roommates who rented the place (a 2BR/2BA TH) had decided to lower their costs by adding two more roommates. That lasted exactly a day.

I don't know where OP's property is.
Virginia law requires landlords to give at least 72 hours notice for routine maintenance. I'd be surprised if any state allows less than 24 hours, except in the case of an emergency (and changing an air filter is not an emergency.)
Tenants have the right to privacy.

That's why I said "announced visits" -- whatever notice the lease/jurisdiction requires, give it and go there. Three days is plenty of time to straighten up, but not enough time to evict the extra two unauthorized roommates or the illegal cat.

[Anonymous]

Not just references—you want to talk to at least the last two *landlords*. (Two because the current one may lie to get a problem tenant out of their hair.)

[Anonymous]

My biggest lesson learned in DC was that we should have hired a management agency. We had difficult tenants and it would have been worth every penny for us to be anonymous to them and have a management company deal with them. I also would never be a landlord in DC again.

[Anonymous]

Anonymous wrote:As a long time renter our big red flag is landlord. We only rent places with a management company. We rent SFH in the 5-7k range for multiple years (currently in rental for 5 years). We will not deal with a landlord directly. We have in the past and they lead to problems due to their feelings rather than referring to the contract they signed.

Can you provide some examples of this bad behavior from a landlord?

[Anonymous]

Anonymous wrote:

Anonymous wrote:As a long time renter our big red flag is landlord. We only rent places with a management company. We rent SFH in the 5-7k range for multiple years (currently in rental for 5 years). We will not deal with a landlord directly. We have in the past and they lead to problems due to their feelings rather than referring to the contract they signed.

Can you provide some examples of this bad behavior from a landlord?

DP but reading comprehension was one. Flipped out over an email because she completely misunderstood it even though it was clear. If you are prone to panic and assume the worst of people, being a landlord is not for you.