Because of the slower real estate market I have taken up a "limited" property management venture. I have no intention on managing big developments but helping individual home renters is more my style.
Recently I was referred to a young, single woman who had just purchased a 4 BR home for the purpose of making it a rental property. Upon inspection I decided that the home would be a good rental; the monthly rent at $2000 was competitive for a good neighborhood home. The home had hardwoods and a lower maintenance kitchen and the yard was managed by an association.
The owner and I agreed on a business committment and we were to begin on January 1, 2010. The evening of the 3rd the owner called and said that she had found a renter on Craig's List and they really liked the property and wanted to sign a year's lease. Sounds simple, right?
I advised the owner that finding the renter was just the first step in managing a rental. Did she have a lease that was binding in this state? How much was the renter willing to pay in advance before move in? Had she screened the renter to determine if they were legitimate? Her answer was that she hadn't considered these things.
Managing a rental is much more than finding a renter. You need to screen for credit history and the sex offender registry and make sure that you are getting enough money up front to protect your property should the renter walk away and break the lease or even worse they trashed the property.
At this writing the owner has not responded to my questions and I don't know her intentions. Having experienced the downside of rental management I am prepared to walk away from a potential renter if they don't pass the upfront screening test.
As for the owner, who knows? Will she just go with the first renter she finds on Craig's List? Maybe she will be lucky. If not, the second time she will take it slower and protect her investment.
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