Now that you have renovated your property and it is in livable condition, the next step is to find yourself a good tenant!

Listed below are some Do’s and Don’t of selecting a tenant.

DO review the potential tenant’s application carefully. Make sure that all of the necessary and required information has been filled out correctly. An incomplete application or omission of information is a sign that the tenant may not want you to know something about his/her past rental history.

DO obtain a credit check. This is one of the most important things when beginning to evaluate whether or not a tenant will be a potential renter for your property. In most cases, if the tenant has a bad rental history, they are not going to spare you any less drama. Do yourself a favor and run a credit check. This will save you the time and money that it will take to evict this person for non-payment of rent.

DO verify the potential tenant’s employment history. Make sure that this person has been able to hold a steady job and can pay the rent. Ask for a significant number of check stubs. This will let you know if the person is legitimately working and able to pay. Also, don’t be afraid to call and verify their employment. In this business, it’s always better to be safe than sorry.

DO obtain a copy of the potential tenant’s Driver License or State ID and social security card. This is a must when selecting a tenant. You want to make sure that this person is legitimate and that they are who they say they are. Also, in the event something happens, you will be able to track the tenant down.

DO obtain a security deposit on the rental unit. Most landlords ask for security deposits to be held in case the tenant causes damage to the property during the time the unit is rented.

Don’t allow the tenant to move in without signing the lease. Even if you know the tenant and have selected them to move into your property, have them sign the lease first before you give them keys.

Don’t select a tenant who has lied on their application. The tenant needs to be as truthful as possible and provide you with correct and accurate information.

Don’t select a tenant that doesn’t have good landlord references. If they have broken previous leases and caused damages to other rental properties, then you can save yourself time and money and find a more fitting tenant for your property.

Don’t select friends and family as tenants unless you know that they are clean, reliable and able to pay their rent. It is very easy to have sympathy for a loved one that is down on their luck and for whatever reason, doesn’t have housing. From a business standpoint, this would not be in your best interest. Unfortunately, some family members can and will take advantage of you and your sympathy.

Don’t be afraid to ask your tenants questions in the selection process. You don’t want to be discriminatory; you just want to make sure you have all the facts about your potential tenant before you render a decision. Being thorough in your selection will save you time and money.  If you would like more information on real estate investing go to http://cashinonforeclosuresblog.com

Sincerely,

Annetta Powell

The Queen of Real Estate!

Calculating the costs and making wise choices in the selection of your properties is one of the keys to ensuring your investment success. You want to avoid investing your money into properties that will be too costly in repairs. If you find these flaws, you may want to think twice because unforeseen repairs can cause the investor more time and money on the property and therefore, you may only break even on the investment. The best way to prevent this issue is to conduct a thorough inspection before you purchase the property. The following list of problems will help you in determining your purchase.

Foundation-When inspecting a property, be sure to look for cracks and crumbles in the walls and ceilings, especially in the basement area. This is a great indication that the foundation is crumbling and may need major repair.

Water and Sewage Problems- Be sure to have your plumber inspect your potential flip for water and sewer issues before you purchase the property.  Mold/Mildew and foul sewage smells indicate that there may be extensive plumbing issues. Plumbing and sewage issues can be costly so avoid properties that rack up heavy bills in these areas.

Trees/Property Line issues- Be aware of any issues that concern large and/or old trees on the property and where the property begins and ends. Fences usually help to determine the separation of property but you never know. These issues can create trouble with neighbors and you’ll have to get the city involved to determine what part of the property belongs to you and what is yours to fix and sell.

Health Hazards- Avoid buying properties that have asbestos and toxic pollution from chemicals. Also, excessive lead base paints are known for environmental pollution. You don’t want to deal with this when selling your property to a potential family.

Residential Add-Ons- If you find a property that has a new addition, i.e. Bedroom or bathroom, be sure that a permit was pulled to build these add-ons before you decide to purchase the property, the less money you spend in bringing the property up to code, the better.

All of these issues can be costly for you. The object is to make money from your properties. You definitely don’t want to spend all of your time and energy in a property that will not bring you in a good return on your investment. The search process can be very tedious but you don’t want to purchase a dwelling with too many flaws. Take your time and have members of your “A-Team” do the math for you. If the property is not worth the investment, keep on searching. There are tons of distressed properties around your city that will bring you a great profit. Remember, this business takes time and patience but it will be worth your while. Hard work will persevere! Making the right decisions is a critical part of your business. Don’t be afraid to ask questions about the property that you are purchasing. Also, don’t be persuaded by the seller of the property that these issues are small and can be easily corrected. Go with the advice from the members of your “A-Team”. This will save you a ton of money!  For more information on real estate investing go to http://www.annettapowellblog.com

Wishing You Much Success

Annetta Powell

Your Professional Success Coach