A FEW TIPS Handling rentals

Industry experts offered the following suggestions for homeowners who are considering renting their home:

Familiarize yourself with local laws dealing with rental properties. It’s important to understand the eviction process, how to handle security deposits and what type of access you have to the property once it’s rented.

Determine whether you want to select the tenant and handle property issues or hire a company to do it. If you take on the responsibility, you are obliged to fix any problems (leaky faucets, broken furnace, etc.) or find professionals to do it.

Develop a rental application. Ask questions on the application that will help you quickly determine whether you want this person for a tenant. Consider asking about pets, smoking and employment, for example.

Ask for references. Call former landlords and ask about the person’s rental history. Verify that the references listed are really landlords and not the applicant’s friends posing as landlords.

Screen potential tenants. Once you’ve narrowed your field of potential tenants, hire a service to run a criminal and financial background check on the applicants. Be wary of tenants with previous evictions or bankruptcies.

Consult with an attorney or the Landlord Protection Agency, www.thelpa.com, before writing a lease. A well-written lease is crucial to protect your property. It will help you evict a tenant or hold them accountable for damage if necessary.

Collect a security deposit equal to one month’s rent. This will help cover any damage to the property and protect you if a tenant moves without paying rent.

Perform a walk-through of the property with the tenant before he or she moves in. During the walk-through, make notes and take photos of any property damage such as chips in the tile, spots on carpeting, etc. You and the tenant should sign the paper as an acknowledgement of what condition the property was in at the start of the lease.

Check on the property. Drive by at least once a month and look for signs of trouble such as garbage in the yard, extra cars in the driveway, or excessive wear and tear. Make arrangements to walk through the property three months into the lease to see how well the tenant is caring for it. (Make sure you give the proper notice required for entering the property.)

Do not accept partial rent payments. Accepting money from tenants who are not paying the full rent can make it more difficult to evict them.