Advice on Finding Tenant
Hi, my partner and I are about to close on a 3 family home in Brooklyn. We will be first-time landlords and just wanted to get some advice from all you seasoned experts out there on how to go about interviewing potential tenants. Any questions to definitely ask…warning signs to look out for, etc. We…
Hi, my partner and I are about to close on a 3 family home in Brooklyn. We will be first-time landlords and just wanted to get some advice from all you seasoned experts out there on how to go about interviewing potential tenants. Any questions to definitely ask…warning signs to look out for, etc. We are pretty good at reading people, but I know that skill can be pretty meaningless when it comes to tenants. I tend to err on the side of giving people the benefit of the doubt and realize that this could get me into trouble now that I will be a landlord. Thanks for your advice….
I don’t think it’s about reading people well as much as it’s about communicating really well and setting the right expectations.
Sometimes in an effort to be nice, landlords downplay their needs. This is polite behavior and is useful in most circumstances. But when you say things like “it’s okay” when your tenant is late with rent, it’s not the same as saying “it’s okay” when someone spills their drink on your shoulder at a crowded bar.
When you downplay or dismiss your needs with a tenant, you open yourself up to the kind of people who are always testing, and that turns into conflict. When you are clear about your needs and don’t sell yourself short, you’re leaving fewer opportunities for conflict.
Thanks all! Great advice….
Craig’s List.
I like meeting and chatting with prospective tenants myself. I trust my instincts (so far, so good). I also agree that it is helpful to see their reaction to the place, the potential downside, and to tell them about the house and its ways myself. If they are interested they can take an application which asks for refernces, employment info etc.
W”e are pretty good at reading people, but I know that skill can be pretty meaningless when it comes to tenants”
eh? that’s exactly the skill you need for everything subjective; things other than the “real” ones like credit, employment, etc. Go with your gut feel. Communication is the most important thing. DOn’t be like these landlords who don’t want to talk to their tenant about problems, who treat them badly, who’re overly nosy, etc. It might be *your* house, but the tenant-landlord relationship is a business one and you need to keep it that way, even if friendly.
I cannot see what a broker can bring to the table. I used Craigslist for my last 3 tenants.
Keep in mind that savvy tenants will expect to pay a lower rent for your apartment if they have to pay a broker’s fee.
The broker’s fee is usually around 12%, and I would want to recoup that in lower rent in 1-2 years max. And since I can’t be sure I’ll be there for 2 years, I’d really rather see it recouped in 1 year.
Which means that for a place I would pay $3k/mo without a fee, I’m not going to be happy paying more than $2850/mo with a fee, and I’d rather pay $2700/mo.
I also find it odd when someone uses a broker for an apartment in their own home. It makes me think “wtf is wrong with this person?”
If I were renting out space in my own home I would want to vet people as thoroughly as possible, meet them a few different times, see their reactions, have a few opportunities to talk to them, etc. Pretty much what Petebklyn says.
Also, the broker will definitely try to smooth over issues to get the deal done (that is there job afterall).
I had a situation where I told the broker “I’d be interested if and only if the owner would agree to X”.
The broker apparently told the owner “they love the place! isn’t that great! by the way, would you be willing to think about maybe agreeing to X, they’d like that”.
The owner thought the deal was nearly done, called me to chat a bit, asked me to visit, and everything was going well and then he says “oh, about X, nah, can’t do that” as if it were the least important thing in the world. So, I’m like, “ooooookaaaaaay, well, have a good day,” while I’m walking away pissed that I just had my time wasted.
As a tenant of many years’ duration, I have to caution against using a broker unless you have special circumstances. I can think of at least three I have used, and none were as careful as the owner. One was fine but not invested, one misrepresented the apt we rented and we moved out and broke the lease 15 days after we signed it, a third told me and the landlord he did a credit and reference check and he didn’t. He didn’t take my SS number and he didn’t call my references. I ultimately didn’t rent the apt, which was lovely, because he was untrustworthy.
If you do go the broker route, by all means use an established, licensed broker with a physical storefront who has been in the neighborhood for ages.
If you do it yourself, you do get a service to run the credit check for you. You have to, it’s required by law.
I’ve always used a broker and have had good luck. But after reading tinarina’s comments, may not do so next time.
Typically used one of the decent-sized realtors in my nabe. More foot traffic. They do a decent job of checking and then I do a meeting if they sound good on paper.
Bedstuy–check out American Tenant Screen–they do the whole shootin’ match as long as you become a member and prove that you own rental property.
OP – great questions.
If one were to do the background checks themselves – LT court, credit, criminal – is there one place that you can go to to do this on your behalf?
Thanks.