Property Management
Submitted By: watterson - April 27, 2007
This is what I use to think and I was terribly wrong. How do I know I was wrong? I have tried it and made many expensive mistakes. Inexperienced landlords will also make mistakes. To help reduce the mistakes I have created a MUST DO list from life lessons I have learned.
DO:
Require a solid rental application from all prospective tenants over 18. Require five year job history and five year residence history Verify everything on the application Use a complete comprehensive lease and have it notarized Check credit Check criminal history Do move in inspection with pictures or video. Require security deposit equal to one months rent (minimum) Know the laws (Federal and State) governing landlords and tenants Treat your rental property as a business, your tenants are not friends, they are customers that have specific contractual requirements to meet Create strict qualifying requirements and follow them. Minimize vacancy; however vacancy is better than a bad tenant.
This is only a short list and will not guarantee a problem tenant. It will stack the odds in your favor of not placing a bad tenant.
Even good tenants can have rough times that make it impossible for them to meet contractual requirements. You will still have to make your mortgage payments or lose the property. So be proactive and know how you’re going to remove tenants that can not pay the rent or are violating the lease in some other manner.
You must do what is on the list above to have a chance of being successful. If your not willing to remove (in a timely manner) a tenant for violating your lease or screen properly. Then hire someone who is, a good property manager. It is worth the money and will save you money in the long run. Also create a team of other specialists to help you be successful. Get a good Attorney, Realtor, Mortgage Loan Specialist, Handyman and Accountant on your team. You may have a specific skill set that allows you to wear multiple hats and that will work for you.
For specific market area details please visit www.MarkWatterson.com or call me 801.815.0411
Mark Watterson is a Principle Broker with Principle Realty Group, Inc and a licensed Senior Mortgage Loan Specialist with Envision Lending Group.