Tips for Successful Leasing

With the real estate market hurting and people stuck in homes they can hardly afford, many potential sellers are looking towards renting their houses as a viable alternative.  Renting can be a great option if the circumstances permit.  But what can you do as someone trying to find renters to make sure the process goes smoothly and you end up with trustworthy tenants who pay their rent on time and in full?

 Have a REALTOR or leasing agent represent you 
This is the best thing you can do to protect yourself.  Employing a REALTOR or leasing agent to act as a buffer between yourself and potential tenants will save you time, energy, and patience.  Agents  typically charge a few hundred dollars and will market the property, show your house to potential tenants, process applications, and advise you as to who you should choose as renters.

Include utility costs in the price of the rent
This tip on its own won’t necessarily lead you to better tenants.  But it will make your tenants life easier and you can rest assured that all the bills are being paid.  One specific example as to why this is a good idea is the water bill.  Water bills are property-specific, meaning they stay with the property.  If you are $500 behind on your water bill and want to move, you won’t be able to until that amount is satisfied.  On the contrary, if you are behind $500 on your heat bill, the energy company will come after just you, not the property itself. 

Using an online tenant screening service
There is no dearth of companies offering tenant screening services.  These companies offer more or less the same services for very similar costs:  criminal background check, eviction history, credit check, etc..  Most companies charge between $30 and $50 per applicant and the service will tell you whether or not applicants would make acceptable renters.

Ask for references
This is another really simple way to safeguard yourself.  When a potential tenant asks for an application, ask them to include 3 “professional” references.  These could be colleagues, previous landlords, former managers, etc...  Ask for a phone number and during the screening process, put a 5-10 minute call into these references.  By asking good questions, you might learn quite a bit about their behaviors, activities, and expectations.

This list is far from all-encompassing but it should give you an idea of what you need to do to get your house rented.  I do believe very strongly that those looking to rent their houses use an agent or REALTOR.  We are professionals and do this for a living - we have access to the proper forms, we know the laws, and perhaps most importantly, we can bring professional credibility to the process and help you find great tenants.