Basics of Property Management: Screening Potential Tenants

Three Things To Line Up Before You Get Ready To Rent Out Your Investment Property

19 December 2016

Jesse Obrien

If you have decided to become a landlord and have purchased a rental property as your investment, there are a few things you need to do before you rent it out. You can't just place an ad online, rent your place out, and expect to sit back and collect the checks. If you do attempt this, you are going to run into a lot of trouble. You need to set up a few things before the first tenants sign their lease. Here's what you need.

Choose A Good Real Estate Attorney

It's very important to have a real estate attorney. You want them to help you draw up the lease and you will want them in case there is any problems with the tenants. In the event that you are sued for failure to make repairs or injury, or the tenants try and withhold rent, you don't want to have to deal with this yourself. A competent real estate attorney is worth the money. Otherwise you will spend hours trying to learn legalese and running around the courthouse filing papers.

Find A Good Real Estate Agent

You are also going to want a good real estate agent. They can save you tons of trouble by screening out problem tenants. They can do background checks and see if the applicants have had prior problems. This will save you the hassle of doing credit checks and assorted background checks. Additionally, a real estate agent will be able to show the house to multiple persons, maximizing the potential to find good tenants. If you have a full-time job, you might not be able to show the house at times that are convenient to your schedule. Finally, they will know how and where to advertise your house. If you rely on posting the ads yourself on sites such as craigslist, then you are not going to have the same results as a professional real estate agent who knows where to advertise.

Choose A Professional Property Management Company

Even after the renters are moved in you will need help. It is simply too much trouble for most people to manage their own rental properties. That is why it is prudent to hire a professional property management company. They can handle collecting rent, dealing with complaints, and can even arrange for routine maintenance. You don't want to have deal with showing up to fix a toilet, or deal with a leaking roof. A property management company is crucial for reducing your workload. They will field the calls from the tenants and then hire the appropriate repair professionals to come and fix the house.

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