Rental Applications

What exactly is a rental application? A rental application is a document that landlords use in the process of finding suitable tenants for rental. It is a form that a prospective tenant must fill out that lists pertinent information about the individual such as full legal name, current address, and monthly income. This information will help the landlord determine whether the potential tenant will qualify for renting the unit.

This application will usually also require information about where the tenants used to live and how long they lived there, where they are employed and how long they have worked there. In addition, it may ask about rental-housing history and any criminal history. It will ask how many people will be living in the unit and for a close relative for contact purposes or in case of emergency.

Social security and driver’s license numbers are also critical information included on a rental application. In addition, two forms of identification may be required to make photocopies of to keep on record.

Having a thorough rental application can significantly help you through the screening process and keep accurate records. Many landlords perform credit checks and background checks as a part of this process and include an application fee to cover the costs of administration and 3^rd party processing.

Making your rental application and payment options available online can also increase the ease of which your potential renters will apply and increase the number of seriously interested renters for your investment property because they are not limited to traditional business hours to interact with you.

So get a good application in place, make sure it outlines your terms and provides you with all of the information you need to keep accurate records.

How to Be a Low-Risk Landlord

Many landowners worry about protecting their investment from insurance claims, property damage, and lawsuits from tenants or any other way that they could end up losing money. Limiting risks of rental business can be simple, all you have to do is learn where you are susceptible to risk and then take necessary steps to reduce that vulnerability.

Step One: A good step to consider is getting the right insurance for your property and business. Review your current policy with your agent and discuss coverage options that fit your needs. Do not wait until a loss occurs to decide if you have the right insurance for your property.

Step Two: Also, make your property physically sound. Keep your property safe for all parties involved. Learn the legal requirements for your area and make sure your property is up to code.

Step Three: Make your rental unit accessible to disabled tenants. Make your property accessible to those with movement imparities as well as other disabilities. Be sure to check whether structures on your property follow the Fair Housing Act’s “design and construction” requirements. Consider all requests from disabled prospects and tenants to modify your building in order to meet that person’s needs. You should evaluate each request on a case-by-case basis and accept it if it’s reasonable. For example, if someone makes a request to install grab bars in the bathroom, it is probably a reasonable modification request.

Step Four: Remove any environmental hazards from your property. Require tenants to report leaks and flooding to you immediately so that you can fix it and prevent mold. Also maintain your heating systems and other appliances, and install carbon monoxide detectors to prevent carbon monoxide build up. You will also want to comply with federal testing requirements when employees or contractors work on asbestos-containing building materials, such as sprayed-on ceilings.

Step Five: Prepare for and handle disasters and emergencies. Back up computer files and keep important documents in a safe and fire proof site. You should also report all suspicious activity. Document the locations of utility shut-off valves. In addition, create an emergency procedure manual with an evacuation plan that fits your property.

Step Six: Lower the risk of crime at your property. To prevent problems and keep your property and tenants safe, abide by state and local laws concerning security measures on rental properties. Screen your applicants and employees carefully. In addition, answer prospects’ questions about security openly, and deliver on any promise you make to increase security.

Step Seven: Avoid fair housing complaints when choosing tenants. If a potential tenant believes you violated his or her civil rights, he or she may take legal actions against you. Even if you win, defending yourself takes time, money, and energy. In order to avoid problems, learn the basics of fair housing laws. The trick to compliance is treating everyone the same.

Step Eight: Use careful and consistent business practices. Use a written lease or rental agreement with tenants and enforce lease clauses consistently. Develop house rules for tenants to follow and enforce them. Never let a friendship with a tenant hinder your professional relationship. Also, to prevent identity theft, don’t use tenants’ Social Security numbers any more than needed.

Step Nine: Avoid problems when hiring help. To lower your risk, determine whether you should classify a helper as an employee or an independent contractor.

Step Ten: Keep up with your taxes. Take steps to steer clear of a tax audit and to maximize your deductions. Create a recordkeeping system for your business so you will be able to keep track of every document that will verify your claimed income and expenses. Understand how your choice of business structure and tax year affects your taxes. Also, you should find out what deductions you are permitted to claim, and then claim them. Lastly, hire the proper type of tax pro for your business, and evaluate your past returns for evidence of trends or problems.

By following these 10 steps, you can significantly reduce the possibility of any potential issues as a landlord to secure your investment.

Bringing Your Property Up to Code

As a landlord, you will have to be aware of many codes that your property must adhere to. Every state has specific building codes, which dictate the minimum standard to which each building must conform to. In addition, in many areas, there will be other codes to follow as well such as housing codes, fire codes, and health codes. If a building is found not in compliance with these specific codes, notice of violations and fines can be sent to the owner.

The building code typically refers to any construction, electrical, or mechanical aspects of the property. It is a piece of legislation that states how a building should be constructed based on living area and number of occupants. A town official known as a building inspector or building commissioner will make sure that the building is up to code while being constructed. When a building is completed and satisfies code regulations, a certificate of occupancy will usually be given to the owner. This certificate means that the building had been inspected and meets all proper standards and is legally safe to live in.

A housing code in most areas deals with safety and sanitary aspects of the property. It is a written code administered usually at a local level. A housing code can cover a variety of aspects for which it sets standards. For example, it can range from garbage removal to building aesthetics. It can also include safety standards such as electrical and heating apparatuses.

Fire codes stress safety issues and fire prevention for buildings. Fire marshals are implemented in most towns to ensure that safety requirements are met. Some topics covered by these codes include smoke detectors, fire escapes and a means of egress in and out of a building.

Health codes deal with environmental concerns and sanitary conditions in relation to the property. A health officer may be employed to ensure specific conditions are met at properties in the town to protect against illness and infestations.

In addition to these codes, other codes may be implemented in your area. Some of these additional codes may include, resident codes, blight codes, and maintenance codes. It is important to make sure your property remains up to code at all times to prevent yourself from receiving a violation notice or fine and to protect the occupant’s safety.

For more details on Hillsborough county codes visit www.co.hillsborough.fl.us/hcce/resources/publications/home.cfm.  Pinellas county detailed code information is available at www.pinellascounty.org/build/

Advertising Your Property

When listing your property for rent, you should consider using several different advertising methods in order to appeal to as many people as possible. The type of advertising that will work best depends on several factors. These factors include the characteristics of the particular property, its location, your budget, and whether you are in a hurry to rent. It is important to first decide what kind of market population you are trying to reach and remember that different geographical areas attract different populations if renters. It is also important to identify your area and market rent (we use www.Rentometer.com) so that you do not waste time and money advertising the wrong terms.

A common form of advertising is word of mouth. It is a good form of advertising especially if you are looking to rent to someone similar to the people who are already renting from you. Rental agencies can successfully advertise and rent your unit. Leasing agents are usually real estate sales agents who specialize in leasing rental units. These agents usually charge a fee based on a percentage of the rent being asked and if when the agent finds someone ready, willing, and able to rent the unit.

Local newspapers will advertise your rental in the area for a fee as well. You will typically place an ad in the classified section of the newspaper you chouse to advertise in for a selected period of time. The price of the ad will depend on the size, which is determined by the number of letters or words used in the ad. City newspapers are similar to local newspapers except the price for advertising is usually more expensive since the circulation is typically wider. Rental guides and magazines are also available for advertising. Big rental complexes usually advertise in these types of guides. Advertising in these guides can be rather expensive, especially for a small property owner of only a few rental units.

Flyers are a good way to advertise your rental in areas around big institutions such as universities or hospitals from which you can recruit tenants. They require a little more active work since you will have to print them and then go and place them. Some institutions or stores that you place ads at or in may require their permission first before posting. In addition, For Rent signs are a very good form of advertising because they are inexpensive and easy to use. Placing a for rent sign in the yard or window of a unit can bring in a lot of potential tenants. Make sure the for rent sign is visible to passerby and that you use appealing colors on it. Black and yellow or black and orange signs are very eye-catching color schemes to put on a for rent sign.

The Internet is also a great way to advertise your property. There are several websites that offer advertising services for a fee, and others that offer that service for free, like Craigslist.org. There are also many sites that specialize in apartment rentals in a similar way that a classified section of a newspaper does. Prices for this type of advertisement vary. Some sites will require you to become a member of the site for a yearly fee. You could also develop your own website to list your available rentals. There are several software programs available that can help you design such a page (we use www.Postlets.com). The trick to advertising online is to get people to visit the site.

Whatever type of advertising you choose, make sure you take care when describing your rental. Use creativity, facts, and careful descriptions. Good advertising will lure in potential clients by painting a vivid picture in their mind of what the property looks like and don’t forget to add pictures whenever possible. Good luck and happy renting!

Rental Leases

A lease is a written rental contract binding the parties involved for a specific period of time with a definite starting and ending date, usually one year. A lease will protect the tenant from rent increases and changes in terms unless the lease provides for those changes. A landlord cannot force a tenant to move out of the unit before the expiration date of the lease unless the tenant fails to pay rent or violates some other term of the lease or state law. Typically, a lease cannot be terminated without a reason; however, it may be terminated if the tenant or landlord gives proper notice for termination, which is usually sixty days.

This contract may be renewed if, at the end of the lease, the tenant re-signs the lease. Terms in the lease can also state that the terms will stay in effect after the expiration date, until the tenant re-signs a new one. It is important to keep in mind, that a lease is not as flexible as a rental agreement and as a result, protects a tenant for a fixed period of time. The tenant is protected with the current owner and any new owner of the property including a bank if the property is foreclosed upon.

In order for a lease to be valid, it must meet certain requirements in the same way that other contracts have to. First, the parties must reach a mutual agreement regarding all the terms of the contract. Secondly, the contract must be supported by a form of legal payment, usually rent. The parties involved must have the legal capacity to contract.

Lastly, the objectives of the lease must be legal, so be sure to take care in making sure you understand both your rights and the rights of your renters to avoid any problems with your lease. Making the investment to have an attorney read over the agreement to ensure its effectiveness can save you a lot of time and money down the road.