My friends' lease debacle story
Long-time family friends leased their home to a minister years ago when they were transferred overseas with the military. To be more accurate, they leased the home to the church who leased it to the minister. Upon their stateside return, my friends found the house had been turned completely upside down: holes in the walls, water damage, total disregard for upkeep. As a side note, the homeowners learned from the neighbors that the pool had been used for baptisms.
According to the Pew Research Center, the number of households that are leasing is higher than at any point in the past 50 years.
The Covid-19 pandemic showed us that remote working situations are here to stay, which in turn means that more and more city center dwellers are gravitating to rental homes outside of the hustle and bustle with yard space and more square footage.
When trusting our homes to tenants, how do we ensure the best possible outcomes? As stated in someplaceproperties.com, individual real estate investors account for 74.4% of rental properties in the United States. Homeowner tenant horror stories are not uncommon, though my experiences as a landlord in Austin, Texas are overwhelmingly positive. I attribute this to several factors.
Essential tips for achieving landlord zen
The following list of tips is by no means foolproof, but it will get you closer to that place of landlord peace for those who are self- managing their properties:
1. Meet the person (or people) who will be renting. Hone your intuition and listen. People tell you who they are. Their public social media presence provides clues as well.
2. Request a completed lease application from each tenant above the age of 18, copies of at least 3 months’ worth of paystubs (or, if self-employed, copies of the last 3 months’ worth of account statements), and copies of driver’s licenses.
3. Be very discerning about animals residing in your home. Request photos. A prospective tenant might describe a pet over the phone or on an application in a way that does not match the actual breed, etc.
4. Run a credit check, criminal background check, and call references every time. The tenant screening company I use, National Tenant Network, provides a report with a score from 0-100 regarding prospective tenant suitability.
5. As much as possible, limit short-term rentals. Less turnover means less wear and tear and the possibility of more of a connection with your long-term tenant. A longer-term tenant costs you less in the long run.
6. Observe the extent to which the prospective tenant honors his/her commitments to the little things throughout the application process. (Attentiveness in sending all required documents, showing up with clarity on the phone, etc.)
The little things tell you the big things.
7. Honor your commitments to your tenants. Show them the same respect and integrity you would like shown. Love and care for your home. Your pride in ownership attracts tenants who take pride in living there and taking care of it. Be the landlord that you would want, and have a great handyman on standby.
In general, be selective and patient with the process. The right tenant is on the way. The wrong one accepted too soon for fear of missing a month of rent could cost you more in the end.
