Purchased your first investment property? Need to rent it out but don’t know where to start?
Once the purchase of your investment property is finalized the next crucial step in order for your investment to start offering you returns is to find the best tenant possible. Before you can manage a successful rental property, you need to find the right tenants, a task which as you can imagine does not come easy. We have put together a rental/leasing step by step process for your convenience.
Advertising the property: You have many tools available to use when advertising your rental property. You may use websites which are free of charge, like craigslist, or you may pay to list your property on the local classified newspaper. Purchasing for rent signs and putting them around the block is also an option.
Showing the property: At this point your advertisement begins giving results and you start receiving phone calls to show the property. It is important your availability is open to that of the interested party, as hours of convenience may vary from person to person.
Rental Application: You are now showing the property and handing out applications. Potential tenants will complete application, this will help you gather all the necessary information in order to move forward with the next step. Keep in mind the first step to finding the best tenants is the rental application, you must know what key information to request in your application while at the same time complying with fair housing rules.
Review Rental Application: Once you have gather a good amount of applications you must now go through them and review them. Verifying the information provided is important, calling previous landlords, employer, references, etc. Hopefully you have reviewed several applications and have decided who you will call first.
Call your first choice: Call potential tenant for interview. This is where you get to know them a little better, it is now comfortable enough to request credit report, background check, police report and proof of income. When reading these reports it is important to know what you are looking for or else requesting them could be pointless, for example it is recommended the income is at least 3xs the rent amount.
Leasing Agreement: Based on all the information provided you might now have your candidate, proceed to the completion of the leasing agreement. To avoid any issues in the future you must ensure the agreement is clear and explain any ambiguity to the tenant. Review and discuss your rules for the property, as well as community/association rules if in a community/association. Collect your deposit as well as any pet deposit and the signed documents.
Final walk through: You have reached the final step of leasing your property. In this step it is recommended to have a checklist which you will be marking off during your walk through with the tenant. The checklist should include the current conditions of the appliances, walls, floors, etc. In addition to the checklist, as an extra step of precaution it is also in your best interest to take photos. Once the walk through is complete, the checklist is signed by both parties and the pictures are taken, you may now collect 1st month, last month and hand over the keys to your new tenants.
It will not be simple and it will be very time consuming. You have just closed on your first investment property which was a very lengthy and complicated process. The good news is you don’t have to do it alone, Living Premises is here to help. If you decide you cannot do it alone please be sure to think of us first as your rental listing agent.
Real Estate Consultants
1 (844) 853-1113
5600 SW 135 Ave Suite #103
Miami, FL 33183