Looking to rent out my apartment (that i own)- what should i require in a tenant?
My husband and I put an ad on craigslist this weekend to rent our apartment and to our surprise were flooded with responses. We already have lots of interest and I realized that we have no idea what we should require. I assume a credit check, and references….but someone offered up a w2 and bank statements! for a rental? is that what people ask for these days? I obviously need to get a lease but what else?
arkachic
in Real Estate - Rentals 13 years and 1 month ago
10
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10 replies
violeta | 12 years and 11 months ago
We run a background check on the individual – credit reports, criminal reports, and eviction reports. Its a bit of work to do this on our own, so we generally get a third party service to do it for us. Here’s an example of one that we use: http://youcheckcredit.com/, can’t be too sure nowadays. Also, we generally obtain some sort of proof of payment – we live in a college town, so a lot of students go through our apartments. But a lot of our student tenants have cosigners, so it works out.
monkey1 | 13 years and 1 month ago
and you do tend get better tennants when you go through a realtor… somehow paying the realtor’s fee is an indicator of sorts… they naturally self select…
monkey1 | 13 years and 1 month ago
i use landlord guard… it’s like $30 per report and does a credit check, housing courts check. i also ask for pay stubs. and yes, i pass the cost on to the prospective tennant as an application fee
arkachic | 13 years and 1 month ago
Thanks everyone. So we are considering a couple that came armed with all of the documentation that any owner would ask for. They also came with their own copy of their on-site.com check. Its dated a few days ago. Should i do another one or is that silly?
slopegirl | 13 years and 1 month ago
the income thing matters because you do need to be able to make sure they can afford the rent. usually the rule is minimum 45 or 50 x the monthly rent as annual salary, so for $2,000 rental, you’d want 50x the rent or $100,000 annual income. I’d also vote for using realtor to do a rental to make it easier to do credit and backrgound check, the tenants pay the fee. If you vet tenants yourself, you will be able to get a personal feel for them, which may matter to you or it may not.
Rick | 13 years and 1 month ago
I’ve been a landlord for 12 years. I’ve never had a problem. I look at their income and do a credit check and get a feel for what their job is about. I most often rent to young couples who are both working. I try to be casual with basic questions in mind to find out what my future tenants are like. Are they new to the city? Do they know Brooklyn. What are their interests outside work? When interviewing them pay attention to their behavior. Are they selling themselves to you? Are they sincere or full of BS? You should feel good about the people you rent to, they are living in your house so a gut feeling about someone goes a long way.
FishieFishie | 13 years and 1 month ago
There are all kinds of intrusive paperwork you can require, but I think the single best thing is to do everything by telephone, not email, listen carefully and spend some time with the person first. Be chatty and sociable, and pay close attention to everything. Is the person straightforward or evasive? Is he courteous about returning your calls promptly and showing up on time? Is he attentive to what you’re saying? Is he asking good questions? Is he friendly or condescending? Do you prefer someone who is laid back or someone who is prissy? Does he prefer Handel or heavy metal? Does he socialize by going bar-hopping or by going to Broadway plays? It’s not just about the money.
Snezan | 13 years and 1 month ago
as an agent, i never accept tenant’s personal credit reports… we always run our own, which includes a housing court check, and criminal background. As an owner you cannot run that type of background check, but you can use on-site.com and do a tenant check.
My suggestion is to use a broker. It’s free to you. Pick a nice one, like me or even better someone referred to you.. We handle the whole process, provide different kinds of standard leases and can advise on required riders (lead paint, etc…). Also, we provide experience in vetting hundreds of applicants. If you’re worried about the fee deterring potential applicants, you can always negotiate with the broker to charge a lower amount.
In the last month, none of my apartments have stayed on the market more than 5 days.
besthouse | 13 years and 1 month ago
you should ask for the following Copy of picture ID Bank statements (3 months) Landlord letter or 12 cancelled rent checks (rent receipt) Bankruptcy discharge paper and list of all the accounts Satisfaction and proof of all collection/judgment accounts Credit report (within three months) Best of Luck
Townie | 13 years and 1 month ago
Leave no stone unturned . You might want to use the services of a reputable broker who will do the criminal /credit back ground check for you and then provide a list of vetted candidates for you meet. They can also give you an idea what to ask for rent /security deposit and lease info.