You'll have a 90% confidence of whether your prospective renter is deserving of your property after performing a background check and confirming the information listed on their rental application. On some occasions, you will get applications from several parties that qualify. You’re probably already using a tenant screening service like FinRet, but this article is about follow-up steps.
1. Your Screening Workflow
To prevent discrimination complaints, I suggest processing applications on a first-come, first-served workflow. Process the app until you find the renter doesn't qualify and then continue on to another. Obviously, you may decide to rent to the most qualified person, but be confident you can clearly demonstrate what (nondiscriminatory) item made one tenant better than another.
2. Refusal Documentation
When you refuse a prospective tenant, clearly documenting your motives for doing this is important to prevent discrimination complaints. Make sure you keep a copy of all documents regarding the potential tenant so it is possible to back up your reasons for denying them later on, in the event you want to.
3. Accepting a Tenant
Once you discover a renter who meets all of your requirements, you're able to verbally let them know they are accepted. Nonetheless, your work isn't yet completed. For that reason, it's very important to take a deposit to hold the vacant property. This deposit is nonrefundable and must be expected within 24 hours of the renter being approved.
Just let the authorized candidate understand you cannot hold the property forever, so if they would like to ensure their standing, they need to pay the deposit within a day.
4. The Deposit
The deposit requirement especially works in cities where there are a whole lot of qualified applicants attempting to rent your home.
This deposit will turn into the renter's security deposit, so it is not an unexpected or additional cost for the applicant. Basically, this record will announce the candidate has until a particular, obviously defined date to sign a rental arrangement. When an agreement isn't signed by that date, then the deposit is given back.
5. The Lease
Both you and the potential tenant will be given a copy of the arrangement, which will function as a receipt for your applicant. I attempt to schedule the lease signing as early as possible to lessen the quantity of time that the property is left empty and essentially losing money. Don’t hold the property for more than fourteen days unless you absolutely adore the renter and do not want to lose them. This is all up to you and your own discretion.
If you need a lease agreement, you can find a state-specific lease arrangements from numerous resources, for example EZLandlordForms.com, USLegalForms.com, or your lawyer. Do not just download a free rental app off the web. Every state has different laws and rules that regulate the landlord-tenant coverages, so odds are that a rental agreement located for free online might not be legally binding to you. Do not skimp on the details of your lease.
6. Lease Terms
Before issuing your lease, however, you want to determine whether you would like a month-to-month lease arrangement, a long term rental, or something in between. Most landlords select a one-time, longer term rental in an attempt to maintain their tenants at the house as long as possible and also to minimize turnover.
Other people decide to provide just month-to-month rentals, to keep the capacity to rapidly and easily eliminate a renter if things do not workout. Others select a six or nine-month rental, which is frequently beneficial in ensuring a lease does not end during the vacation months of November through January, when vacancies are the toughest to fill. It comes down to your personal requirements, but regardless of which rental duration you select, make sure you acquire the right lease agreement form.
Although rental arrangements generally vary in duration and content, most include the following information:
Names of renters
Address of this leasing home
Lease duration length
Safety deposit sum
Overdue fee description
The move-in status report
Provisions for animals, utilities, and smoking, and the like
You might also have to offer certain state and national records together with your rentals. Check with a regional lawyer for additional state-specific requirements and details that you may have to supply.