Any caution when you look for tenants and give lease

I'm in the process of doing the same thing. I've had rental property before, many years ago, in Chicago. I used my attorney. Not sure what he'll charge but he only charged $1,500 for the closing...i suspect maybe $200. He provided the application which was fairly comprehensive and he did the credit check and went over the credit issues with me. He will draw up the lease.

You need a signed authorization for someone to run the credit check...real estate agents do them as well. But I'd steer clear of agents unless you really know one because they will want to insert themselves into the process and get a larger fee. Other than the credit check you'll want to chat with their current landlord. My tenants came up with credit scores between 500 and 650...not great...but as my lawyer said...for a $1,200 a month apartment in bed stuy you're not going to get high credit scores for people in that price range.

Posted by: guest at January 14, 2008 8:04 PM

You can get a standard Blumberg's lease for a 2 family, and add as many clauses as you want. There is also a Blumberg's form called application to lease, that prospective tenants complete. I always use Craigslist. It's not so difficult to rent the apt yourself, and credit score is meaningless. I rely on W-2s, current pay stubs, verification of employment history, references, past landlord's experience with the tenants, and rental history. Also ask for two month's security up front. It is a good indicator if someone has some savings and not living check to check.

Posted by: guest at January 14, 2008 8:36 PM

Another fake post. Mr. B. where are you?

Posted by: guest at January 14, 2008 9:26 PM

I've always used a local realtor and insisted on a full credit check in addition to employment history and references. If all of these checked out I would then agree to meet with them and follow my gut. I've been blessed with absolutely fantastic tenants so far. Why in the world would anyone use craigslist and not have a realtor do a full check to screen people fist. I understand realtors have a bad rap but they do sometimes serve a very good purpose and this happens to be one of them. Good luck.

Posted by: guest at January 14, 2008 9:31 PM

OP, have someone proof your English before you post next time. I so confused!!!! ahhh!!! by your bad English!

Posted by: guest at January 14, 2008 10:38 PM

^you're an asshole. Sounds like you belong in West Virginia, or Bay Ridge.

Posted by: guest at January 14, 2008 11:09 PM

Ysabelle, I guess I've just been very lucky. I normally do not like dealing with realtors either but chose to work with a small local realtor located a few blocks from my house.

Posted by: guest at January 15, 2008 1:54 AM

I always wonder why landlords are willing to give anyone a lease to begin with. Why not insist on a probationary month-to-month so you can see if you can live together, then offer/ask for a lease if it's working. It doesn't matter what their credit score or salary is if they are loud, cook fish every night, walk heavy, etc.

Posted by: guest at January 15, 2008 12:19 PM

Ysabelle, that's not the idiom. I have no idea what you are trying to say. Why not try again.

Posted by: guest at January 15, 2008 12:38 PM

12:19 -

Because you'd never get any good, responsible tenants, that's why. I have rented and owned, and I would never take a month to month lease as a renter, unless I was in a situation where I (1) had no furniture or stuff, and (2) didn't plan to stay more than a few months - a temporary rental in effect. I'm not sure I would want one as an owner, either - seems to me a temporary person has less at stake in maintaining my apartment in good condition.

As a tenant, it costs money to move your furniture and stuff, you have a bunch of set-up costs (like every apartment seems to come with broken toilet seats, and you need curtains and shades to fit, and some furniture, storage items like bookshelves, window ACs, and other stuff are always needed to be bought to fit every new place, as the old stuff doesn't always work in a new space), and it is a real pain to change your address with everybody, which gets more complicated as you age and have more 401(k)s, insurance policies, etc. - it becomes a real pain.

Not only do I get a one-year lease, but I only take the place if I can get a lease with an option written in for another year at at a set amount of rent increase, so I can plan my moves ahead of time, and don't risk having to move already in only a year. That's how you get good tenants - by recognizing that your tenants have a life, too, and don't just exist to pay you.

And if you have a problem with what your tenants cook for dinner, you really shouldn't be having tenants at all ;-)

Posted by: guest at January 15, 2008 12:38 PM

12:38, if you have a problem with potentially having to move out of someone else's property, you should buy your own.

Posted by: guest at January 15, 2008 1:26 PM

We priced out apartments a little lower than market so that we could have our pick. Tenants are also apt to stay longer which is great because you usually lose about a months rent between tenants.

We've never run a credit check but require copies of bank statements, paystubs, w-2s, referals, etc.

Posted by: guest at January 15, 2008 1:52 PM

1:26 -

I have owned, and will own again - I'm happy renting right now in this market. I don't have a problem moving, but I, like most reasonable people, like to reduce my time spent moving, and the costs involved. And good landlords like good tenants.

Posted by: guest at January 15, 2008 3:43 PM

1:52 - Why wouldn't you run a credit check? This shows how responsible someone is with paying bills and obligations in general. Size of bank accounts and paystubs have little to do with how responsible a person is. I know people who make very modest wages and have nothing in savings but have never been late with a payment of any kind. I also know quite a few people who make a damn good living and have sizable savings and could not care less about paying their bills on time. Credit checks, along with references, show the whole picture! Paystubs and bank accounts do not!

Posted by: guest at January 15, 2008 3:52 PM

I really agree with 3:52. Always ran credit checks on coop purchasers when on the board, although other board members (short-sightedly, in my view) didn't care about that. It tells you how someone views paying stuff on time, which is what you really care about in a tenant, not how much they earn (assuming what they earn is sufficient to pay the rent.)

Posted by: guest at January 15, 2008 4:03 PM

Credit check is a must and check the references yourself-do not rely on a broker who just wants his comission. You will be living there with them. I recommend "open house" hours rather than trying to schedule a million individual appointments or answer questions over the phone to people, I had an "open house" a few nights a week for 2 hours until I got a renter. If people do not have to pay a broker fee, you may be able to get a slightly higher rent but I agree that asking a reasonable price assures you your pick of the litter. Good luck.

Posted by: guest at February 19, 2008 12:30 AM

Bank statements, w2s and references can all be faked--you can't fake a credit score, make sure to get the tenants picture I.D. as well.

Posted by: guest at February 19, 2008 12:33 AM