Landlording - Ten Things to Be Aware of! Numbers 4 - 6

By
Services for Real Estate Pros with Miami Real Estate Investor's Association MREIA

4. Have your tenants send rent check to P.O. Box address.

  • You don't want them to know where you live! Renters always show up when you are having dinner with your family.

5. Always charge an application fee ($100) to process rental application.

  • I always found that I had success with charging a non-refundable,   application fee. People are less likely to mislead you when they have skin (money) in the game. You can always apply the deposit towards the applicant's security deposit later on. This application fee covered my costs for:
    • Application Processing
    • Credit Check
    • Criminal History Background Check
  • These checks are really necessary to make an informed decision as whether you want to rent to the applicant or not.  I had an applicant slam down a deposit for all three months and was ready to move in tomorrow.  No one does this so a red flag went off in my head.  Sure enough, he had served time in prison for assault with a deadly weapon.  Collecting rent from him was going to be tough wearing a bullet proof vest in this Florida heat.  P.S. Be careful how you reject people's rental application.  There are laws to protect minorities, etc.

6. Ask for picture proof of Driver's License and Social Security # and write it down on right hand corner of application.

  • Makes it easier to track former tenants down if they trash your place or owe you money.  They have to live somewhere.
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Rainer
138,335
Melody Botting
Broker Associate PenFed Realty - San Antonio, TX
You Deserve The Best
We do not charge as much to process the app in my area.  I am not saying you are over charging.  I think it is a good price because it is 'work'.
Apr 28, 2008 03:24 AM #1
Rainmaker
672,229
Jim & Maria Hart
Brand Name Real Estate - Charleston, SC
Charleston, SC Real Estate
Thanks for sharing, Bob. I appreciate your tips. Jim
Apr 28, 2008 03:38 AM #2
Rainmaker
96,200
Yvette Smith
LONG & FOSTER - Williamsburg, VA
Realtor In Williamsburg VA, Homes for Sale

Hey Bob, thanks for sharing!  I'm a landlord & it's super important that you know this stuff!  You've got to protect yourself and the tenant as well.

Yvette Smith

Williamsburg's Preferred Realtor!

Apr 28, 2008 04:11 AM #3
Rainmaker
96,200
Yvette Smith
LONG & FOSTER - Williamsburg, VA
Realtor In Williamsburg VA, Homes for Sale

Hey Bob,

I've got some great golf properties for sale if you want to make Williamsburg home/vacation home:-).  Call me when you're headed this way...I'll give ya a tour!

Yvette Smith

Williamsburg's Preferred Realtor!

Apr 28, 2008 06:49 AM #4
Rainmaker
67,920
Denise Allen
Resh Realty Group - Chesapeake, VA
Realtor@ Chesapeake, Hampton Roads
We don't like to see high fees like that.  It really isn't fair to the renter as each place has their own way of approving applicants and it isn't always on the fair side.
Apr 28, 2008 01:46 PM #5
Anonymous
Anonymous

so if the applicate did not get approve what about the deposit fee. the management keeps it, right? what about if the management doesn't want to rent to you?

Jun 03, 2008 10:43 AM #6
Rainer
15,516
Bob Burns
Miami Real Estate Investor's Association MREIA - Miami, FL
Real Estate Marketing and Blogger

What would be the reason management wouldn't rent to the tenant?

1) Could have lied on the application

2) Police or credit report may have disclosed something that was not disclosed before.

3) They could give back the money but I always made sure they understood non-refundable by making them sign a form of disclosure statements basically saying that they understood the non-refundable clause.

4) I charged this fee to cover my processing expenses and made sure they were serious about the application process. No tire Kickers!

 

Jun 03, 2008 10:56 AM #7
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Rainer
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Bob Burns

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