If you have a property that you don’t use and want to rent it out to a tenant, there are a few things you should know first. If you’re not careful, you could get into trouble with the law or have trouble collecting rent. Here are tips for renting out your property to a tenant:
1. Screen Your Prospective Tenants
Don’t just accept every applicant who comes along. Make sure that they can afford the rent and that they won’t cause any problems. If you don’t think someone will be able to pay their rent, then you shouldn’t sign them up. You should also check if they have been evicted before or if they have any criminal convictions. At My Logan Realty, rental management company their stella teams never let anyone move in until they have completed your tenants’ background check.
2. Get Written Consent from Your Landlord
If you live in an apartment building and want to rent out your apartment, then it is important that you get written consent from the landlord first. If you don’t get permission, then you could end up being evicted from your own apartment because of what is known as ‘subletting without permission’.
3. Run a credit check on every applicant
You can order a credit report online or through the major credit reporting agencies (Equifax, TransUnion, or Experian). This will show you whether they have any past due accounts (which is an indicator of their ability to pay rent) and their income level. When reviewing an applicant’s credit score, look for red flags like multiple current collections or judgments against them, as well as recent bankruptcies that could affect their ability to pay rent.
4. Call every reference
Don’t just take the applicant’s word for it — verify employment and former landlords personally yourself by calling them directly. Get references from previous landlords to see if the tenant paid rent regularly and if there were any issues that arose during the lease period. Ask former employers about the applicant’s job history and whether they were responsible workers who showed up on time each day.
5. Rental agreement
Once you have found the perfect tenant, create a rental agreement detailing all of the rules of the rental property as well as all of the responsibilities of the tenant and landlord. This will ensure that both parties are kept happy and safe by avoiding any confusion about what is expected from each party.
6. Make sure you’re legally allowed to rent out your property
If you plan on renting out your property, first make sure you’re legally allowed to do so. Some cities have strict rules about who can be landlords and how they can manage their properties. For example, in New York City, if you own a one- or two-family home, then you don’t need special permission to become a landlord. If you own an apartment building with three or more units, then you typically need to receive approval from the city before renting out any units.
You’ll also need to follow local housing laws regarding fair housing practices and anti-discrimination laws when advertising your rental property, screening tenants, and signing rental contracts. Check with your local housing department for more information on how to become a legal landlord in your city.