Author Topic: First Rental - Need advice  (Read 1381 times)

divsnowball

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First Rental - Need advice
« on: January 02, 2016, 06:02:55 PM »
Hello Mustachians,

I will be renting out my current residence starting this summer, and while it seems rather simple, the more I think about it, the more complicated it seems. I was hoping to get some advice from some veterans on my first property.

Quick background - Its an apartment in a building downtown in a mid major city, target market is a grad student or a young professional.

Lease - Is there a standard lease document, at least to start with, out there on the internet? If so, where?  What do you add to a "standard" type of document.

Advertising - I don't think its difficult to find a tenant, in the area Im in, but what methods do you use? Craigslist?

Credit Check - Do you do them, and what tool do you use to run them?

Preparation for tenant - Should I do things like get the carpet cleaned and get a fresh coat of paint on the walls?

If theres any other consideration I may not have thought of, let me know!

Thanks!!

GrayGhost

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Re: First Rental - Need advice
« Reply #1 on: January 02, 2016, 06:48:59 PM »
Lease - There probably are, depending on your state. I looked at a few before compiling one of my own, with the best parts of all included. Be sure to have sections on severability, late fees, penalties, specific things the tenant isn't allowed to do, notes about eviction proceedings, and that the tenant will be billed for repairing things they break and stuff like that.

Advertising - We use Craigslist. If you're going for a more upper class market, you should also try Zillow.

Credit Check - Absolute necessity. We use MySmartMove.

Preparation for Tenant - Any touches should be done before the place is even advertised online with photos. We don't change out carpets or paint between every single tenant, because individual tenants don't put that much wear on them unless they are problem tenants.

Other Considerations - Does this property meet the 1% and 50% rules?

divsnowball

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Re: First Rental - Need advice
« Reply #2 on: January 02, 2016, 08:43:10 PM »
How do you handle late fees? As defined in the lease.

GrayGhost

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Re: First Rental - Need advice
« Reply #3 on: January 03, 2016, 12:13:25 AM »
Effectively $5 a day. They have until the 5th to pay, and if they don't pay on the 5th, on the 6th they have to pay $30, plus another $5 a day. We retain the right to evict even if they promise to pay late or anything like that.