Picking the Right Tenant is key, but the law requires you have your requirements IN WRITING!
It is federal law requirement (Fair Housing) that landlords put their rental standards in writing, but very few landlords do. Why? I think they are not really sure what their standards are. If you don’t have your standards in writing (and, unfortunately, few landlords do), you are liable to end up in a pickle if someone accuses you of violating this rule. Also, it make is very easy to then pick the FIRST qualified person that applies for your property. If they do not qualify you can reject them (and this should be done in writing also).
Your standards do not have to be complex but should be able to be produced if someone at a local or federal agency, or anyone off the street, requests a copy of them. Written standards can be as simple as this:
Qualifications for Tenant Selection for my company for —Lease Options are:
· No landlord tenant judgements unpaid.
· Ability to pay all outstanding judgements/collections.
· Good landlord reference or a reason for a shortsale or foreclosure
· Gross monthly income equal to three times monthly rental rate.
· If any bankruptcy, it must be discharged.
· Option fee available or must be negotiated/financed.
· Prefer they have spoken with a mortgage representative.
On my lease option standards I don’t put a credit score, but I do state that if they have a bankruptcy it must be discharged. Many landlords do require a specific credit score and that is fine, but for lease options I realize they do not have a good score. I also don’t put length of employment, but you can. These are only my standards for lease options—my standards for my regular rentals are stricter. You must establish your standards and they must be in writing.
Picking the right tenant is the key to success as a landlord. Also, as an agent we want to help our sellers/owners select and pick the right tenant.
http://www.wendypatton.com/blog/your-standards
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