When you take the time and money to invest in a rental property, you want to make sure it is protected legally and financially. Here are some recommendations to help you make the most out of your rental property with good property management.
Have Good Tenant Screening
One of the first and most important rules in good property management is having the right tenant screening process. You may have all types of potential renters apply for rent in your property, so you will need to have a process that provides you a thorough check into their information before you give them the keys to your rental. Once you let a tenant move in, it can be quite difficult to remove them with eviction due to illegal activities on the property or non-payment of rent.
Be sure you have a thorough rental application that collects all the pertinent information about a potential renter. Also, get an application on any resident that is the age of 18 or older before you rent to them. Each applicant should pay an application fee, which covers your time and effort in screening them, which should include requesting a copy of their credit report and completing a background check. These evaluations will cost you to obtain them online through a landlord portal or similar website, which is commonly paid for by the tenant.
Know How to Handle Tenant Issues
When you are a landlord or own a rental property, you will need to know how to handle some difficult tenant issues, especially if you have not screened them properly and have allowed a problem tenant into your property. When your tenant damages the property, gets involved in illegal activity, or does not pay their rent, you should have a plan to handle the situation. For example, if a tenant has not paid their rent and it is past the due date, do you know how many days you need to wait until you can start an eviction process? Or do you know when to deliver a late rent notice, which provides them the opportunity to catch up to avoid eviction?
Depending on the state your rental property is in, you may have a variety of different timeframes that you can post a notice of late rent, or start an eviction process. Some states will allow you to evict them fairly quickly, but others will require you to go through a several-month-long process to complete a legal eviction. You should also have a good attorney that will be able to work for you in the event an eviction becomes necessary. Otherwise, you can complete the eviction process legally through the local courthouse based on their regulations and time frames.