New Landlord Needs Advice

[DK1]

What is the name of your state (only U.S. law)? NJ

I just finished renovating a property that I will be renting out in a nice / sought after area. This is my first rental property and I'd like to know some starting advise on how to get the place rented out.

What is the typical screening process for tenets (credit history, past renting history, ...) ?

What type of insurance I should have to protect myself if someone gets hurt or renter's property gets damaged?

Any links to NJ state guidelines for landlords that I should look over before renting it out?

Where to get a solid lease template?

I was considering using a real estate agency to find a tenet and manage the property but it doesn't seem to be recommended.... What are the standard fees for this and what would they provide? Any other thoughts on this would be appreciated too.

 

[Banned_Princess]

What is the name of your state (only U.S. law)? NJ

I just finished renovating a property that I will be renting out in a nice / sought after area. This is my first rental property and I'd like to know some starting advise on how to get the place rented out.

congradulations.

What is the typical screening process for tenets (credit history, past renting history, ...) ?

yes all of that, you can charge the appicant to have the reports done. (actual cost.) credit and public records regarding lawsuits. -make sure the reciept is clearly marked application process fee.

What type of insurance I should have to protect myself if someone gets hurt or renter's property gets damaged?

You should discuss this with your insurance agent. theres plenty of awsome coverages for landlords, on rental home coverage... including loss of rent in case of home damage. (think fire) Increase your homeowners and rental property liability limits to between 1/2 million and 1 million.

Any links to NJ state guidelines for landlords that I should look over before renting it out?

uh, yes.

LSNJLAW - I Rent My Home

Please note that in NJ in order to evict a tenant, there has to be for an acceptable reason. make sure you review the link and sublinks throughly.

Where to get a solid lease template?

your local bookstore. where you should also pick up a book about renting propertys. or you can write one yourself being carefull to abide by the requirements listed in the above site.

I was considering using a real estate agency to find a tenet and manage the property but it doesn't seem to be recommended.... What are the standard fees for this and what would they provide? Any other thoughts on this would be appreciated too.

sorry, I have none, call them and ask them.

 

[DK1]

Thanks for the response!

How do you go about getting credit history and credit and public record regarding lawsuits?

 

[concerned1977]

try SmartMove by TransUnion. You can get the background and credit check.

https://www.mysmartmove.com/

 

[atomizer]

Renting in NJ is like navigating through a mind field. You need to know your state landlord tenant act and how it will apply to your decisions concerning renting. Buy a few books on property management and join a local landlord association. They can help supply you with a lease and direct you to an attorney in your area. There are typical behaviors that will identify bad tenants. These can be acquired by reading, experience, and with the help of fellow landlords.

Generally, NJ, NY, and CA are not a landlords first pick

 

[Andy0192]

Renting in NJ is like navigating through a mind field. You need to know your state landlord tenant act and how it will apply to your decisions concerning renting. Buy a few books on property management and join a local landlord association. They can help supply you with a lease and direct you to an attorney in your area. There are typical behaviors that will identify bad tenants. These can be acquired by reading, experience, and with the help of fellow landlords.

Generally, NJ, NY, and CA are not a landlords first pick

Quoted for Truth. Fixing up the property is only 1/2 the job.

Get educated up front, or pay for your education in the end.

 

[atomizer]

Here's where you begin, but you may change your mind and will rather sell than rent it out.

LSNJLAW - Tenants' Rights in New Jersey Chapter Index

 

[DK1]

Quoted for Truth. Fixing up the property is only 1/2 the job.

Get educated up front, or pay for your education in the end.

Here's where you begin, but you may change your mind and will rather sell than rent it out.

I kind of realize this and went through the debate of just flipping the house but decided to stay the course rent it. To both of you, would you recommend a property management service since I am new to this?

Is there any one book that you recommend?

Thanks again to all the responders on this!

 

[atomizer]

The problems with management companies is that they tend to nickle and dime you to death. You also need to research them and examine your contract carefully.

As for books, Nolo puts one out that is pretty good, but there are many others out there. I don't have access to my library right now so I can't offer the ones I would like to recommend.

 

[applecruncher]

Hi DK1,

There is a site landlord.com which has good information

Aside from that, here's something I put together myself:

First and foremost, know who you are renting to.

Don't be fooled by smiles, "nice" demeanor, sob stories, talk about trust funds 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. Tell them come back if/when they do have it. But no guarantees re: availability.

2) Have them fill out an application (you can get a current, legal application online, from HUD, or even from a non-profit housing organization). Ask for rental references (although some landlords lie just to get rid of a tenant). And, a 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, retirement income, a disability award letter, etc. Some people work at more than 1 job. That’s fine, but ask to SEE proof.

Save yourself 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.

You can search something called Court View on the website of your local county municipal court. Things like evictions, judgments, criminal history will usually show up.

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 – usually costs less than $10/month). In fact, I would insist that they carry it and ask to see verification that the policy is in force..

Lastly, get 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

 

[DK1]

Great advice.. especially the Pacific Heights part.

 

[tranquility]

Join your local apartment house association. They will have information, classes, forms and a service to run the credit checks. Go to a few of the meetings and network too. There is nothing like asking an experienced person a question when problems develop. And, problems always develop.

 

[FarmerJ]

The first month a tenant is with you when they pay you , you can require CASH , you dont have to accept personal checks, your also free to insist they use your bank and purchase certified check made out to you.( they can even meet you at your bank to do this ) But remember any form of payment other than cash or them buying cashier check infront of you at your bank can bounce ,its also good idea to not only get first and dep but last month too this way your lease can spell out when near the end proper notice must be given to not renew and first time tenant doesnt pay rent by the time it is due your able to address it.

 

[atomizer]

Few tips;
1.Do not install a garbage disposal unit in your sink. If you do, you will repairing them more often than it's worth.
2.Do not install ceiling fans or expensive amenities in your rental. They will generally disappear with time or experience extensive wear and tear.
3.Washer's and dryers should be left up to the new tenant to install. Otherwise, you will be repairing them often.
4.Do not rent to anyone that does not have the full rent, and deposit on hand. Do not accept checks this first time, but if you do, cash them immediately(their bank) and make possession dependent on your ability to do so.
5. There is a tendency for new landlords to want to befriend their tenants, to do so will be a mistake. The friendlier you are to them, the harder it will be to protect your interests. In all your dealings with your tenants, use the K.I.S.S. rule.

 

[aldaron]

To me drug history is important, also rent cannot exceed 30% of NET income. If it does they cant afford the rent. If cops raid the place and drug deals are going down you can lose the place due to it being confiscated.