Going to be a landlord

[caslerst]

What is the name of your state? NV

I am going to be renting out my house in Nevada but I will be living in California. I have never been a landlord before so I was looking for some advice.

1) Should I start with a property management company and then get rid of them down the road? Those of you who have experience with them do you find that they are worth the money? One has quoted me 10% of the rent (is that normal) which seems like a lot to me.

2) Does Nevada require interest on deposit money? I found this website but it's a bit...legal http://www.leg.state.nv.us/Nrs/NRS-118A.html

3) Please feel free to share some pointers\pitfalls\experience to a newbie.

thanks

 

[seniorjudge]

Q: Should I start with a property management company and then get rid of them down the road? Those of you who have experience with them do you find that they are worth the money? One has quoted me 10% of the rent (is that normal) which seems like a lot to me.

A: Start and stay with one. 10%? That's cheap. Jump on it.


Q: Please feel free to share some pointers\pitfalls\experience to a newbie.

A: Never rent to someone getting a divorce or looking for a job.

 

[applecruncher]

Hello,

Others will stop in to give answers to the questions you posted. Meanwile, here is my advice:

First and foremost, know who you are renting to.

Don't be fooled by smiles, "nice" demeanor, sob stories, talk about trust furds and forthcoming inheritances/settlements, claims about how they are involved with the church, and further promises.

1) Ask to see a valid Driver’s License or State ID to confirm identity before you show the apt, If they “don’t have it with them”, “wallet was stolen”, etc., red flag. Everyone is required to carry ID. Tell them come back if/when they do. But no guarantees re: availability.

2) Have them fill out an application – an informal or self-made application is fine. But make sure you get rental references. Sure, problem with a former landlord and/or neighbors doesn’t necessarily mean they are a bad risk, but try to find out all you can. Get SSN & DOB and run a police check. This costs less than a dollar at the Sheriff’s Dept. You don’t want to rent to someone with history of violent behavior or someone who is on the lam and has outstanding warrants. Don’t accept any excuses – if the person hesitates or gives excuses, say “Nice meeting you; goodbye”. Might also want to check the Sex Offender database in your area.

3) Ask to SEE proof of steady income. Two recent paystubs, a disability award letter, etc. Some people work at more than 1 job. That’s fine, but ask to SEE proof.

Save youself and all concerned some time by telling them in advance via phone or e-mail that you will require 1, 2, and 3 - no exceptions or excuses. Don't accept a dime from them until 1, 2, and 3 are done.

Different opinions re: credit reports. No harm in getting one, but some people have decent credit but are troublesome tenants and a credit report won’t reveal if they pay their rent or if the police will be at the place frequently.

Be upfront about your rules regarding visitors (which often turn out to be additional tenants once the person gets a key). Put something in the lease having them state how many people/names, DOB are going to be living there. This gets tricky.

Ask them if they have renter’s insurance (it’s easy and cheap to get).

Lastly, get a the movie "Pacific Heights" with Michael Keaton, (libraries have the DVD, fix yourself a snack and enjoy. After watching it ask yourself if you REALLY want to be a landlord. Good luck!

 

[Zigner]

1) Ask to see a valid Driver’s License or State ID to confirm identity before you show the apt, If they “don’t have it with them”, “wallet was stolen”, etc., red flag. Everyone is required to carry ID. Tell them come back if/when they do. But no guarantees re: availability

Good pointer, but I am curious as to your basis for the statement underlined...

2) Have them fill out an application – an informal or self-made application is fine.

Bad idea - one wouldn't want to be on the wrong end of a discrimination lawsuit.

(aboutBut make sure you get rental references. Sure, problem with a former landlord and/or neighbors doesn’t necessarily mean they are a bad risk, but try to find out all you can. Get SSN & DOB and run a police check. This costs less than a dollar at the Sheriff’s Dept. You don’t want to rent to someone with history of violent behavior or someone who is on the lam and has outstanding warrants. Don’t accept any excuses – if the person hesitates or gives excuses, say “Nice meeting you; goodbye”. Might also want to check the Sex Offender database in your area.

3) Ask to SEE proof of steady income. Two recent paystubs, a disability award letter, etc. Some people work at more than 1 job. That’s fine, but ask to SEE proof.

Save youself and all concerned some time by telling them in advance via phone or e-mail that you will require 1, 2, and 3 - no exceptions or excuses. Don't accept a dime from them until 1, 2, and 3 are done.

Different opinions re: credit reports. No harm in getting one, but some people have decent credit but are troublesome tenants and a credit report won’t reveal if they pay their rent or if the police will be at the place frequently.

ALWAYS get a credit report.

Be upfront about your rules regarding visitors (which often turn out to be additional tenants once the person gets a key). Put something in the lease having them state how many people/names, DOB are going to be living there. This gets tricky.

Ask them if they have renter’s insurance (it’s easy and cheap to get).

Don't ask - REQUIRE it.

Lastly, get copy of the movie "Pacific Heights" with Michael Keaton, (libraries have the DVD) and after watching it ask yourself if you REALLY want to be a landlord. Good luck!

Haven't seen it, but I can imagine!

 

[seniorjudge]

...


Haven't seen it, but I can imagine!


...

It took place in a foreign country...California.

 

[Zigner]

It took place in a foreign country...California.

I AM from California. But, it's set in San Francisco which is foreign to every one else in California!

 

[Alaska landlord]

Never rent out property if you are living more than a half hour away. You will be at the mercy of the tenant or the managing company.

Sell now.

 

[applecruncher]

Hey there Zigner,

As some can tell, I am a huge fan of that movie “Pacific Heights”. And it takes place in San Francisco, CA. Melanie Griffith is also in it. Talk about landlords being flim-flammed, LOL!

Okay, re:ID. I did a few minutes of research and can’t find anything saying one has to carry it (but saw something about efforts to pass such a law – but apparently there are privacy issues). But think about it – (esp since 9/11) providing ID is a part of everyday life. Heck, I’ve been on jury duty several times and had to show ID everytime I came in the courthouse. Also, it makes sense to have in case of injury, medical emergency (stroke, heart attack, etc.).

However, a landlord should make sure the person is who they say they are. I guess I don’t understand why a person would not want to have ID (unless they have something to hide or there are warrants outstanding, etc.).

As far as the application and discrimination, there are 5 protected classes: Sex/gender, race, religion, age, and handicapped. Easy to get a current/legal application online or from HUD or even a non-profit housing organization.

 

[Alaska landlord]

Without a valid I.D. you cannot be sure about the background, criminal or credit check of the applicant. or even who the applicant is.

I get applicants that refuse to give out their SS#. Since I cannot perform a complete background check without it, the application is refused on the basis of not completing the application.

 

[Zigner]

I am NOT saying that getting their ID was a bad idea. I think it's a GREAT idea. However, I see no reason that you should have to do it just to SHOW the apartment.
In any case, I was actually questioning the statement that ID *had* to be carried (that is not the case)

 

[Zigner]

Hey there Zigner,

As some can tell, I am a huge fan of that movie “Pacific Heights”. And it takes place in San Francisco, CA. Melanie Griffith is also in it. Talk about landlords being flim-flammed, LOL!

Okay, re:ID. I did a few minutes of research and can’t find anything saying one has to carry it (but saw something about efforts to pass such a law – but apparently there are privacy issues). But think about it – (esp since 9/11) providing ID is a part of everyday life. Heck, I’ve been on jury duty several times and had to show ID everytime I came in the courthouse. Also, it makes sense to have in case of injury, medical emergency (stroke, heart attack, etc.).
However, a landlord should make sure the person is who they say they are. I guess I don’t understand why a person would not want to have ID (unless they have something to hide or there are warrants outstanding, etc.).

Required in certain instances? Yes. A good idea to carry? Yes. Required by law? No

As far as the application and discrimination, there are 5 protected classes: Sex/gender, race, religion, age, and handicapped. Easy to get a current/legal application online or from HUD or even a non-profit housing organization.

True, but you said self made application was ok, and I disagree with that (unless it's been reviewed by an attorney of course)

 

[Alaska landlord]

For safety reasons, women should always request proper ID and either phone someone about who they are meeting with, or have the applicants ID stay at the office while you conduct the showing.

Me, I carry a 357.

 

[Zigner]

For safety reasons, women should always request proper ID and either phone someone about who they are meeting with, or have the applicants ID stay at the office while you conduct the showing.

Both are excellent suggestions.
But it doesn't change the fact that there is no law that a person has to carry ID (just for the sake of having ID)

 

[applecruncher]

Without a valid I.D. you cannot be sure about the background, criminal or credit check of the applicant. or even who the applicant is.

Exactly. Therefore, I wouldn't take it any further, and would not rent to them.

Required in certain instances? Yes. A good idea to carry? Yes. Required by law? No
True, but you said self made application was ok, and I disagree with that (unless it's been reviewed by an attorney of course)

Agreed. And I'll amend that for the future.


Caslerst – you’re getting quite an education here, aren’t you?

Questions for the more seasoned members – esp LLs. I mentioned insisting on seeing proof of income – which is usually wages, disability/retirement income, etc. but what are your thoughts about Investment income? Someone could have a minimal monthly income but could also have substantial investments; i.e., they supplement their income with other assets. And, most people don’t want to share their bank statements with a landlord. The argument could be made that they could sell/lose their investments next week. Sure, but they also could get fired or get mad and quit their job next week.

Also – what about accepting personal check for initial rent and sec dep? Do you recommend verifying funds and putting a hold on those funds or just take a chance? Or, do you required certified check/money order (or cash)?

 

[Alaska landlord]

There is nothing wrong with a self made application unless you screwed it up, or the tenant made it for you.

If you know what you're doing, then it's not a problem. The application process starts with the first phone call, and that's where you decide if you want to go any further.

No applicant has to have an ID, but there's no law I have to interview applicant that does not have one. Unless your practice deviates from your written criteria with the applicant, then it should be oK to send applicant home to search for valid ID.