The Confounding Case of the Rotten Renters [Part 5]
By: Ms. Lowball
If you have joined me on my journey and followed
the rotten renter saga, you probably want to know some of the steps I have
taken to prevent this in the future. However, before I begin, I do want to add
a caveat.
Just because someone looks good on paper doesn’t mean they
will be a bad tenant, just as not all tenants who look bad on paper are bad
tenants. It’s all in the screening.
Our Strategy
Advertise the property using a tool called Vflyer. After creating my ad, it
automatically syndicates to all of these websites.
Then? I manually post to
Craigslist.
Now, here is how I do it a little differently than most
folks. I put a link to our online application (we use Buildium
– who offers up free trials…hint, hint) where each applicant over 18 can submit
the application for rent and collect the application fee. Those fees are then
deposited into our bank account – like magic. No driving around, no wasting
time. Just simple, easy processes.
Buildium
also includes credit and criminal history background checks for a nominal fee.
For each potential tenant who qualifies based on income (I like at least three
to four times the rent), I plug them into the screening software and get a full
report and rental recommendation on each one. Again, I like to keep things
easy.
I follow up with employers and prior landlords also. Why? To avoid another confounding case of rotten renters.
Then, I contact all of the tenants who qualified and invite
them to an open house – this way, I don’t have to run all over town all day.
And bam….instant renter.
Each time I have done things this way, it’s worked like a
charm.
Our Fee Structure
When pricing my rentals, I do it competitively. Ask a real
estate agent to assist you in this task or use an online tool like Rent O Meter. Simply plug in the
property address and you will get a rental pricing recommendation.
We require the first month’s rent and first payment upon
signing of the lease.
For example, on our property where we charge $904 per month,
we collect $1,808 before we hand over the keys.
And, you guessed it, we use Buildium
for that too. Everything in our investment realm is 100% automated. No checks,
no money orders….everything online instant transfer.
We also require proof of rental insurance and that the
tenant create a Buildium
account and link either a credit card, debit card of checking account so that
rent can be automatically debited each month. I make sure to write that into
the lease. This also comes in handy for property damages, as I can invoice and
collect payments direct from the website.
If they have a pet, we charge a $500 deposit and (depending on
the size of the pet) anywhere from $25 to $50 additionally per month in pet
rent. This is non-refundable.
I also have in place, home warranties on our properties so
that when things break, we only pay a $75 deductible in most cases. However, if
the tenant is responsible for the damage, or the damage was a result of
improper maintenance, I invoice that through Buildium
as well.
See? Being a landlord isn’t that difficult. Even when it
comes to dealing with rotten renters. Of course, all of this has been a
learning experience, and we are still learning, but hopefully these tips have helped!
Try our strategy (and Buildium) and let us know how it
works for you!
Hugs and kisses,
Ms. Lowball
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SUBSCRIBE TO OUR MAILING LIST, LIKE US, FOLLOW US AND NEVER MISS A BEAT!
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