How to Check Tenants When Renting Out a House
Renting out your home can bring in extra money, but you also become a homeowner. Aside from the legal obligations to consider ahead of time, having a proper screening process can save you the hassle of bad tenants or even potential lawsuits. Here are some tips that might help.
Know state laws about landlords and tenants
Start with your state ‘s tenant laws , which will have their own standards for content and housing requirements, rent increase rules, security deposit limits, and termination conditions. (You will also want to make sure you are familiar with federal anti-discrimination remedies .)
There are many variations from state to state; for example, most states require a homeowner to provide heating, but others also require air conditioning. As a general rule, assume that your tenant always has a copy of your state’s landlord and tenant law and manage your property accordingly.
Pass background check
As a landlord, you have the right to require a criminal record and credit check from any potential tenant. This service is provided by many sites such as RentPrep , SmartMove and MyRental . You don’t have to do this, however: Another screening option is to ask for proof of employment and the latest pay stubs.
Interview with potential tenants
Treat your initial tenant interview like a job interview. If you’re just renting out a room, your tenant may become your roommate with whom you interact every day, but you will want to maintain a constant professional distance out of respect for the tenant. The purpose of the interview is to understand how reliable they are in paying rent. Do not ask questions that may be inadvertently discriminatory, such as how old they are or anything else that unnecessarily invades their privacy. Zillow has a good list of questions you can use.
Write a rental agreement
In a lease , everything about your lease is written down in writing: the names of the parties involved, payment terms, utility bills, lease duration (usually monthly), service rules, and your entitlements to enter the leased unit. (often 24 hours notice).
You can also set some house rules that cover pets, smoking, overnight stays, and use of common areas (if you share the same property). To further protect yourself from liability, you should also have a rule against illegal activities in the home. Make sure these rules are followed by consulting your state’s tenant homeowner law or, if you are cautious, a lawyer. You can use Google for all kinds of free rental contract templates, or visit sites that customize a rental contract at a specific price, such as Law Depot .
Hope for the best, prepare for the worst
Imagine a nightmare tenant and try to include as many terms as possible in your lease that will reduce potential problems, including noise, clutter, and damage to your property. Before a tenant moves in, agree to a dispute resolution policy that you can come back to later (Nolo’s legal website has some good suggestions for both landlords and tenants , including the use of mediation services). You don’t want to make your tenant’s life miserable, but you want to protect yourself too.