What I need to know about being landlord

[bella26]

State: Arizona

I recently bought a beautiful 3000sq ft home, and I want to rent it out for extra income. It seems like everyone in the Phoenix area is calling saying they're upside down on their mortgage or have filed bankrupcy. I know that everyone makes mistakes, but can I still rent out the property to them? What should I ask for (questions/monies) to protect myself? Also, if they're upside down, does that mean they want to leave their current home and come to mine, and pay ME AND their outstanding bills?

I also just had a guy txt me saying he wants a "special" of free for the rest of the month (2wks), and he wants to pay right now only half the deposit (he'll pay the rest next mth). I don't care so much about the 2wks free, but the part about half the deposit scares me. I'm only asking $1100/mth plus $1100 security deposit.

I'm a new landlord and I don't know how to handle situations when everyone seems to have financial stories. Any advice would be appreciated. Also, I guess a credit check is unnecessary for those people because I already know they have bad credit and have gone under bankrupcy, right?

 

[Antigone*]

State: Arizona

I recently bought a beautiful 3000sq ft home, and I want to rent it out for extra income. It seems like everyone in the Phoenix area is calling saying they're upside down on their mortgage or have filed bankrupcy. I know that everyone makes mistakes, but can I still rent out the property to them? What should I ask for (questions/monies) to protect myself? Also, if they're upside down, does that mean they want to leave their current home and come to mine, and pay ME AND their outstanding bills?

I also just had a guy txt me saying he wants a "special" of free for the rest of the month (2wks), and he wants to pay right now only half the deposit (he'll pay the rest next mth). I don't care so much about the 2wks free, but the part about half the deposit scares me. I'm only asking $1100/mth plus $1100 security deposit.

I'm a new landlord and I don't know how to handle situations when everyone seems to have financial stories. Any advice would be appreciated. Also, I guess a credit check is unnecessary for those people because I already know they have bad credit and have gone under bankrupcy, right?

It might be prudent to have a property management company manage your beautiful home.

Otherwise a trip to the library to check out Renting & Leasing for Dummies might be the other way to go.

 

[justalayman]

You also need to learn the Arizona statutes concerning landlord and tenant relationships.

http://www.azsos.gov/public_services/publications/residential_landlord_tenant_act/residential.pdf

 

[Searchertwin]

State: Arizona

I recently bought a beautiful 3000sq ft home, and I want to rent it out for extra income. It seems like everyone in the Phoenix area is calling saying they're upside down on their mortgage or have filed bankrupcy. I know that everyone makes mistakes, but can I still rent out the property to them? What should I ask for (questions/monies) to protect myself? Also, if they're upside down, does that mean they want to leave their current home and come to mine, and pay ME AND their outstanding bills?

I also just had a guy txt me saying he wants a "special" of free for the rest of the month (2wks), and he wants to pay right now only half the deposit (he'll pay the rest next mth). I don't care so much about the 2wks free, but the part about half the deposit scares me. I'm only asking $1100/mth plus $1100 security deposit.

I'm a new landlord and I don't know how to handle situations when everyone seems to have financial stories. Any advice would be appreciated. Also, I guess a credit check is unnecessary for those people because I already know they have bad credit and have gone under bankrupcy, right?

No need to check credit, like you stated, you know it will be not good.
For the guy who wants 2 weeks free, will be the one that will cause you problems. He is taking control of the rental. You control your own property.
Do not accept 1/2 the deposit, if they can't afford the deposit and first month rent, they will probably can't afford the next month rent. Everyone will have a financial story. Check work history and previous LL. Call the previous LL and check court house to make sure that this LL is really the true owner of property. If it is a lie, than you will know.

 

[Who's Liable?]

State: Arizona

I recently bought a beautiful 3000sq ft home, and I want to rent it out for extra income. It seems like everyone in the Phoenix area is calling saying they're upside down on their mortgage or have filed bankrupcy. I know that everyone makes mistakes, but can I still rent out the property to them? What should I ask for (questions/monies) to protect myself? Also, if they're upside down, does that mean they want to leave their current home and come to mine, and pay ME AND their outstanding bills?

I also just had a guy txt me saying he wants a "special" of free for the rest of the month (2wks), and he wants to pay right now only half the deposit (he'll pay the rest next mth). I don't care so much about the 2wks free, but the part about half the deposit scares me. I'm only asking $1100/mth plus $1100 security deposit.

I'm a new landlord and I don't know how to handle situations when everyone seems to have financial stories. Any advice would be appreciated. Also, I guess a credit check is unnecessary for those people because I already know they have bad credit and have gone under bankrupcy, right?

This is a difficult time for rentals in AZ, and the rest of the nation. Especially since almost everyone is in the same boat.

Since credit checks are basically useless in an economy like this, you need to look at the personal and professional background. It is very plausible that a person who has a good paying job, and has been with the same company for 5 years has a bad credit score due to them walking away from their home.

Look out for bankruptcies as it is an indicator of poor money management. more so than walking away from a home loan.

I would stand firm on the security deposit, however it may be some time before people with that amount of money comes knocking at your door. If it were my decision, I would give them 2 weeks free if they paid the security deposit in full at the time of rental.

Make sure to get the first months and security deposit via certified check only, no personal checks!

In this state, you need to register your rental with the county, make sure to do it or it can come back to haunt you. Have a GOOD lease and have the tenant initialize EACH page at the bottom. Also CLEARLY write the monies owed for the various fees and any late fees.

Above all, do NOT let them dictate the terms or become late with rent every month.

 

[atomizer]

Renters asking for freebees are what I call marginal renters. They are barely making it and are living pay check to pay check. Take searcher twin's advice and wait for the right applicant.