# Are there ways of getting good tenants renting your place out ?



## whitehawk (Aug 14, 2012)

Hi People.
Trying to decide whether to rent my place out or sell.
lt makes a lot more sense to keep it and rent it out indefinitely but people are saying renting it out can be bad news .
So are there ways of getting good tenants you can trust ? Have you rented properties out , how did it go for you ?


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## heartsbeating (May 2, 2011)

We rented out our place as fully furnished (with our furniture) while living overseas for a couple of years. We had a property manager and opted for corporate tenancy - meaning the tenants were from their company and professional cleaning etc was taken care of by them too. Had no issues. Came home to our place being lovely and clean, furniture pretty much all good, and rent was always on time. 

Our investment property has had the same tenants for 3 years. A family, always paid on time, been easy. We use a property manager to collect rent and advise if we need to fix things and such. They vetted applications for us and gave history if there'd been any issues. This was valuable.
_Posted via Mobile Device_


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## EnjoliWoman (Jul 2, 2012)

I have rented before - a good contract is a must plus a credit check and background check. A deposit is a must and outlining any maintenance requirements - yard care, changing air filters, etc. Ex and I had great tenants twice. Though one tenant flushed and ran (guy headed to work) only to have the upstairs toilet clog without his knowing and it overflowed - 30% of the 2-car garage ceiling fell onto the garage floor plus carpet extraction on the upstairs hall and stairway... still have expenses for any repairs.

An agency is a good idea though. They really save a lot of hassle if you can afford the management fee and not be in a negative cash flow.


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## SamuraiJack (May 30, 2014)

Credit checks, Credit Checks, Credit checks...

and NEVER on any account, go with "your gut" when it seems like a good idea because "this person seems so nice".

Seriously.


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## Maneo (Dec 4, 2012)

If you don't live where your rental is consider using a management firm that handles rental properties. You make less but have less headaches.


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## lookinforhelpandhope (Apr 10, 2013)

My 2 cents.

Rental agencies can be really good at vetting tennants but will, of course, eat into any profit. Also, they can HELP protect against bad renters but you never get any guarantees.

Based on personal experience, I'd say have really good insurance. A policy that's specifically designed for landlords. I say this because my family back in UK had a tennant burn their rental place (and the three adjoining apartments) to the ground. In this case it was a genuine accident but having a really good landlord insurance policy really helped in the aftermath. 

It's true what someone else said about not taking a chance on people who 'seem nice'. I had one tennant who was a female dentist. You'd think she'd hold herself to a fair standard of clenliness. Wrong! The place was in such a mess when she left we not only had to have professional cleaners come SCRUB the place but had to replace all the rugs.

You can def try mitigate the risk of a bad renter but I'd say be prepared for the worst. Also, a good security deposit if your friend 

Editing to add . . .

Document the condition of the place prior to allowing the renter to take occupancy and have themn sign something confirming that the place was handed over to them in that condition. Stops someone from trashing the place them claiming it was already like that.


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## norajane (Feb 7, 2012)

I used to have a house in SoCal that I rented out while living in NorCal. I had a property manager take care of everything, and he was worth his weight in gold.

Don't fear the property manager fees because you can deduct those when you do your taxes. Investment properties also allow you to deduct for home maintenance, re-renting fees, and repairs, plus you get to depreciate the home on your taxes, too.


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## Yeswecan (Jul 25, 2014)

whitehawk said:


> Hi People.
> Trying to decide whether to rent my place out or sell.
> lt makes a lot more sense to keep it and rent it out indefinitely but people are saying renting it out can be bad news .
> So are there ways of getting good tenants you can trust ? Have you rented properties out , how did it go for you ?


Generally a good credit report gets good tenants. 

I rented our first house. The lady renting had excellent credit. Very nice. Took care of the place. She was a stripper by trade.


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## Runs like Dog (Feb 25, 2011)

Depends - management firms get up to 40%. But of course if they screw up and your tenant trashes the place they're not on the hook anyway. If you can't watch your properties closely it might be the way. Cover yourself with the appropriate insurance as well in case they start a fire or something. 

Also you should construct leases so that even if the background check missed something AND it's uncovered later that the tenant is a bad egg you would have turned down had you known about this specific thing then they are fast tracked into eviction. Eviction is a huge pain. It can take up to 3 months and in that time the tenant won''t be paying rent. 

Also don't be shy about calling the cops on tenants. I have. I have across tenants who had warrants on them, were dangerously mentally ill or leaving drugs around the place for anyone to see. I've also had tenants who tried to illegally sublet MY property. Throw all their sh^t on the curb then and there. 

It sounds counterintuitive but 'section 8' housing is pretty reliable. If you can hook up with the county to rent out your place on their funding to 'at-risk' adults, typically those with cognitive issues where you don't need to retrofit special facilities for the handicapped it can be a stable and good thing. You check on your property and if there are any problems the government steps in to get help for that person or repair most of the damage if there is any.


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## Sunburn (Jul 9, 2012)

Never rent to family


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## whitehawk (Aug 14, 2012)

Haha , no female dentists , no one l like and no family , got it :smthumbup:

Nah there's some really good tips here , thanks very much people.
Sounds like a bit of a worry though if you get unlucky doesn't it .
l'm a good hour away from the property. My brother lives just down the road though. Dunno what sort of a watch dog he'd make though he's pretty slack


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## Revamped (Jun 19, 2014)

Sell it.

We had a rental in a college town, thinking it would be oh so easy. Credit checks, security deposit, first and last months rent, references. Still, never had a good tenent. 

Most said they worked, and they did, when I called for references. Within two weeks they either got canned or quit. A month later, moved out, trash everywhere.

One seemingly nice early 30's couple took the light switch plates, outlets and hot water tank when they left.

Never again...


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## COguy (Dec 1, 2011)

A lot also depends on where you rent. College towns and cities are a bit more risky. If you're in the middle of suburbia there's a higher chance that you're getting a stable family unit that isn't going to throw keggers every weekend.

I've had a condo rental for over 10 years in a suburban neighborhood 45 minutes from the city and I'm on my 4th tenant now. They've all stayed for several years, all paid on time every month, never any major repairs needed (still on original carpet and only had to replace washer and dryer). Our property management company is worth every penny, never gone more than 15 days without a renter.

Second the advice to have a separate account where rental income goes. Ideally you don't touch it until you have a lengthy reserve, which would cover several months of payments and a decent repair. That way you don't have to tap into your personal funds for your investment.


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## Runs like Dog (Feb 25, 2011)

Call up Obama and rent it out to 14 illegalitos.


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## DoF (Mar 27, 2014)

SamuraiJack said:


> Credit checks, Credit Checks, Credit checks...
> 
> and NEVER on any account, go with "your gut" when it seems like a good idea because "this person seems so nice".
> 
> Seriously.


My neighbor used to ask the potential tenant to pay for Credit Check, repaid upon 1st months rent.

If the person didn't bite > he just lost a crappy tenant.

If they paid, good indicator of good tenant.


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## JustAMan2 (Oct 28, 2011)

I've been a landlord for over 27 years now. I currently rent out 9 properties--so I've got the landlord T-shirt.

I don't buy properties that are more than just a VERY short drive from my home (10 miles). I prefer to keep an eye on my own properties and do my own maintenance (like changing the air filters etc.). Yes, when I'm in the property I keep my eyes open for signs of trouble, either with the tenant or the building itself. I don't snoop, but I'm not blind either.

I screen my own tenants. I joined a local landlord association and they really helped me out with that process.

In my opinion a manager will NEVER take care of a property the way you will. They are a "hired hand" at best. Around here, I've heard a BUNCH of horror stories from owners about rental managers. I'm sure that there are some good ones out there, but the best of them won't care about my property like I do.


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## lifeisbetterthanalternat (Apr 24, 2012)

There are a couple things to keep in mind:

Depending on where you live, there is NO basis that property will appreciate the way it has. Don't listen to the bank/realtor rhetoric that "we are at bottom". We will only know that retrospectively. 

Consider what you could make on the equity (if you sold it) and plan for a modest (3%) annual increase. If your area is not growing jobs or goingn the other way it could be less.

consider that your property taxes will likely rise. Municipallitied are being squezed by pensions and other entitlement commitments. 

also a bank will only recognize 75% of the income. so if your expenses are 10000/yr and your rent is 10000yr the bank would see that as a 2500 loss as they would only count 7500 or the rent 

I agree with just a man too. Property managers can be good but, sometimes are more self-serving than anything else. 

As others have said insurance is key. I had a fire in my rental and luckily (after much fighting) it was covered. I was with a reputable firm. A disaster can eat up decades worth of profit. If someone is to lose their job or become disabled.. good luck... you will be the last creditor paid. After 3 months of no pay i let someone walk owing nothing. Cheaper than eviction.. Again it may never happen.. 

Also factor in more painting and carpet replacement/.floor sanding and general maintenance than you would in your own home. Even with the best screening...the best renters will not care for a rental the way they will for their own home. 

Depending what end of the market you are going for plan paint every 5-7 years and carpets 5-10 years, this may be somewhat overkill but run it with those numbers. 

there are good landlord sites you should check out. You should also know how the laws apply to your state.


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## heartsbeating (May 2, 2011)

We had a small commercial property once that we rented out. Different to a house but with that one, we did live nearby. We managed that one ourselves (or rather I did). Again, was all fine.

Some good tips here from others. I'd also add 'be a good landlord'. Remember this is not only your investment it's also someone's home to them while they're there. Do the right thing. I'm sure there's some crappy landlords out there too.
_Posted via Mobile Device_


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## chillymorn (Aug 11, 2010)

keep it and rent it. 

could you get a bad renter or two possibly so what.

take the first year to save a slush fund for repairs and after tenant clean up. save all receipts for wright offs. then sit back and rake it in.


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## HuggyBear (Aug 4, 2012)

Credit check??? Pleease...

I'll take a reference from previous landlords WAY more seriously than a credit check. For a lot of people, the only thing you'll find out from a credit check is that they have a student loan issue.


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## tennisstar (Dec 19, 2011)

I have been so lucky to have great tenants. I like couples with no children (no offense, but kids are messy). I had a realtor di a credit and employment check. Tenants never late. 

I worry about when these tenants move out, though. 

The bad thing is I had no equity to use for my new home, and I had to go with a FHA loan. The property had negative equity at the time, though, so I really didn't have a choice.
_Posted via Mobile Device_


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## whitehawk (Aug 14, 2012)

This is all great , thanks very much for all the tips and experiences.

The property isn't worth that much but the same was bringing very good money during the boom , so it'll be boom again one day l guess but really that's not an issue right now anyway.

The thing is l am really sick of the place and going over there but the place is worth far more rented out - if that went ok that is , than it is to sell it .

Really , if renting it out went ok , l'd be crazy to sell it bc l'd clear in rent what l could sell it for right now , every 10yrs anyway after costs .
But l am sick of the place so l've been thinking [ or fantasizing maybe ] , if l got a good tenant that could take care of that though mostly anyway.


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