What should I prepare before I rent out my condo? landlord question.?

Question

I will rent out my condo by oct 1st. What should I prepare for renting it out. I think I need to prepare forms for renters to sign, but how can I get those forms? Should I ask renters to buy renter's insurance? Should I run their credit? If I need to run their credit, should I need their SSN? How can I know their rental history is good or bad? Please let me know what should I do step by step. Thank you for any help.

Thank you all! You guys are experts!

My property is in Naperville, IL.

Answer 1

As a private landlord, it will be difficult and cost prohibitive to run an actual credit report. Instead, you should require the following:

Local bank account at least 12 mos old
Proof of Renter's Insurance prior to move in
and of course a job history.
FICO score of 640 minimum.
Have THEM Copy their drivers license & social security card
Don't ever accept cash; check or bank money order only.

You can ask them to provide a credit report to you dated w/in 5 days of receipt. They can use their freebie ONLY at annualcreditreport.com & have them pay the $10 or so to get their FICO score.

go to your library and check out books specific to landlord for dummies and your state. I'm a private landlord. I easily evicted my first tenant in 19 days start to finish and have a judgment against them w/out a lawyer.

Most deadbeats won't bother w/ renter's insurance and my new tenant is a DREAM!

I created all my own forms, you just need to follow your state laws.

Answer 2

If this is a condo you own, you need to check your condo docs to see if you are prohibited from renting the property out and what are the conditions.

If you are allowed to rent the property out, you need to have a good lease agreement. You can find those in office supply companies such as Office Depot. However, understanding the contract and its implications can be tricky if you have not done it before. You can also get a Realtor to do it for you.As landlord, you also need to understand the local "landlord/tenant' regulations. You can go through the Internet and search the local government site.

Renter's insurance will only cover their belongings. You need to maintain your liability insurance as well as your property insurance. If someone falls and break a leg because of the condo, you can be in a jam.

Do credit check by all means but is not full proof. Best thing is to keep at least 1st, last and security deposit (3 months). More importantly, have you 3 day or 7 day notices (whatever you local law requires) and post it on the door as soon as the rent is late. That preserves your right to eviction. Don't ever let it drag on. In other words, know your legal right as landlord and exercise them.

Answer 3

First ask for a contact number with their previous landlord. Then run a credit check (you probably will need their S.S. number) I think it is up to them to buy renters insurance, but I would check with my homeowner's policy to make sure that you are covered if it is rented out - especially liability if they are injured on your property. Ask for a security and last months rent.

Have you decided if you are renting on a month to month or a yearly lease. How much time is required for notice that they are moving. Under what circumstances do you get to keep the security - actual damage or for clean up or both.
Also, consider under what circumstances you can ask them to move - loud parties that disturb the neighbors?

I will tell you one other thing that you are not going to like - if they decide not to pay rent, you have to get a court order to evict them. This means paying for an attorney and possibly a sheriff to get them out.

Although most tenants are reasonable, I know several people who rent the same place for more than 10 years. There are a few that can put up a good front until they are in and then the trouble begins. So don't skip on the credit check and contacting the past landlords.

Answer 4

You need to find out if it's legal for you to rent out your condo.

Look at the contract you signed and see if there's a sub-let clause in it preventing you from renting. Find out if the state you live in needs a Certificate of occupancy before you rent.

Next, you need to have a good contract. This will spell out all the terms of the agreement between you and the renter. How much rent is, any penalties if it's late. If pets are allowed. Who's responsable for minor and major maintanance. the process you can use to evict them, the process they can use to move out.

There are "form" rental agreements you can buy, but if you're planning on doing this for a long time, then you should look into getting a lawyer to draw one up. They'll know what normally goes into a rental agreement. You just bring them any specific points you want included.

You won't need to run their credit if you ask them to pay first and last month's rent up front. Just keep in mind that some states/provinces require you to pay intrest on any monies given in advance, so you'd either need to bank it, or expect to pay the intrest out of your own pocket, at a rate set by the law.

You can ask potential renters for the numbers of their last few apartments, call the landlords and ask them how they were.

Answer 5

FYI, you absolutely CAN require insurance. This helps immensely if something happens that THEY are responsible for-- like flooding from the toilet leading to damage. Your insurance would be first to fix it, most likely, then get reimbursed through them. This keeps your rates from going up.... but MAKE SURE you keep your own insurance as well. It might be cheaper for you if you explain its rented out and thus dont need insurance on belongings.

You can require anything you want (assuming it isn't discriminatory) its in the lease. The lease is a contract and its saying they agree to it.

There are specific companies that do the credit check, you'll have to ask around for one.

Rental history-- you put this on the application, asking for where they were and what the phone numbers were, and then you call and ask the previous landlord if they paid on time and gave proper notice, etc.

You will need their SSN for a credit check, yes.

Answer 6

Try a search to see if you can find a sample rental agreement. If not, you may need to go to the library and copy one. Check the card catalog. You ought to be sure your rental agreement indicates they may not operate a business out of your building.

I don't think you can require them to buy renter's insurance. It is none of your business, because it only covers their property, not yours. Get with your insurance agent and make sure you have the proper insurance as a landlord.

I would check their credit. I got set up with a company that would do that for me, sorry that was 10 years ago so I don't remember how I found them, I told the potential renters up front that they would have to pay whatever it was to check their credit and they would have to have good credit before I would rent to them. People who have good credit tend to take care of your home. I had three renters before I divorced and moved back and none of them tore anything up. They all had good credit. And, yes you will need their Social Security numbers. If they are not married, get it from every adult living there. And, each one has to pay for you to pull that report if not married.

I wish you luck. Remember you can write off any losses, such as expenses for fixing things or months it is not rented, but you also have to claim the income so you may want to hire someone to do your taxes.

Also, make sure the house is up to city code. Everything needs to be in good working order, and you may be required to have a wired-in smoke detector or two.. Check city code.

Answer 7

Depends on the rules of the condo association. If the rules state that as owner-occupied you can't rent it out, then no, you can't rent it out...you should have been given copies of the condo association constitution and bylaws, read them and make yourself familiar with them, since they rule what is expected of you and what you can do. Note that if the rule prohibit renting and you rent, there is every chance that the association can go to court, evict your renter and charge you for all the court and lawyer fees.

Answer 8

You should type up your own lease, listing what is not acceptable, such as smoking, pets etc. You can't make people get insurance. Your insurance will cover your condo, however it will not cover your tenants belongings. That is up to them. Yes, check their credit history, you will also be able to find out if they weren't on time for rent etc by running their SSN. Also maybe ask them for references, and a letter from their employer.

Answer 9

I belive you also have to contact the city to say that you are are planning on using that property as a rental to get it properly zoned. that way, if the people stiff you out of rent and you have to take them to court, you can win. If you don't get it zoned properly, you would lose a lawsuit

Answer 10

rent the home through a real estate company and they will prepare the papers. Make sure all agreements are signed and understood. But their costs is one month's rent