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A vacation home, a second home, a spare room inside your house: there are several different places you can rent out. Renting your extra space, when it comes down to it, is a great way to supplement your income. Still, there is a fine line between a good renter, a bad renter, and a renter that you may have to take to Judge Judy. Before allowing anyone to move in on your space, properly screen to make sure your houses won't be used as a punching bag.
Have an Application: Composing a standard rental application is the first step in getting the ball rolling. An application not only tells you who is interested - as those not interested won't waste their time with paperwork - but it also gives you a chance to know a little bit about your prospective renter. The information they provide you in the application will be one of the major keys in learning if they are "rent worthy."
Check References: More often than not, a landlord has their potential renters provide them with two or three references. Even so, not many landlords actually take the time to check the references. Don't make this mistake. Checking references is essential in learning if your renter is responsible and trust worthy. Anyone who can't come up with a few references, or only lists their mom and dad, may be someone you want to keep your house away from.
Watch for Red Flags: Some red flags are obvious - colored neon and waved from the highest mountain - while others are subtle: you really have to look for them. If your potential renter gets defensive about certain questions, is overtly vague, won't provide you with references, or refuses to give you employment verification, consider these red flags: you are probably better off renting to a rhinoceros than to them.
Go With Your Gut: Like everything else in life, when choosing a renter, your gut gets the last word. This doesn't mean you should throw out common sense to make way for your instinct's opinion, but if you have a bad feeling about a renter, there is probably a reason. A renter who talks nonstop about the massive parties he could throw in the basement of your second home, for instance, may be a renter you should think twice about renting to.
Check their Credit: If everything else pans out - the references, the interview, the employment verification - you may want to go one extra leap and perform a credit check. A credit check can help you gauge how a renter manages their finances: if they owe VISA 45,000 and their first born, chances are they aren't fiscally responsible. A credit check also allows you to see if they pay their monthly bills in a timely manner. This is something that, as a landlord, is of particular importance. No one wants a renter who pays their rent merely when they feel like it.
Jennifer Jordan is an editor and staff writer for www.thecatskillfarms.com. A real estate investor, she is up-to-date on the latest trends of the housing market. She even sometimes tells people that those trends were based on her ideas. |
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