You've decided to rent out your house. Ask these 10 questions first.
Are you thinking of renting out your home? In that case, you need to ask these 10 questions to anyone wanting to rent your house:
1. When are you planning to move in?
This is the question that shapes the rest of your engagement with the potential tenant. The answer here will help you determine whether or not the tenant’s timelines synchronize with yours. If, for example, a tenant wants to move in a month from now but you want to rent it out sooner than that, then there is no point in engaging the person any further.
2. Why are you relocating?
If the tenant is moving into your property after falling out with their previous landlord, you need to know what led to the fallout. Was it because of dishonoring their rent obligations? Was it because of neglecting their other tenant responsibilities as per the lease agreement? The answers they give will tell you whether or not to let them rent your property. In the same vein, ask them how long they have lived in the previous apartment and how long they intend to live in yours. If you establish that they have a habit of hopping from one apartment to another within unreasonably short durations, politely decline their application.
3. Have you ever been evicted for any reason?
This question seeks to clarify the #2 question even further. Maybe they weren’t evicted in their immediate former home, but you cannot conclude that they have never been evicted in the past. Ensure that they give you sufficient details about their journey since they started renting.
4. How stable are you financially?
If they are unstable, chances are that they will give you problems with the rent. Experts say that a good tenant is the one whose monthly rent doesn’t exceed 40% of their total monthly earnings. That is to say that if you expect the tenant to pay $1000 in monthly rent, they should be earning at least $2500 per month. And because monthly income isn’t a perfect indicator of financial stability, make a point of running a credit check to determine how much debt the tenant is in. If your new tenant is in the Gig economy, you might want to ask more questions if they are financially stable.
5. How many people will you be living with?
The last thing you want is to rent your house out to an individual, only to realize later that he brought in his extended family and some of his friends to live with him. There is nothing wrong with housing a needy friend or relative, except that more people mean more wear and tear to your property. Besides, overcrowding in homes is listed by most fire departments and health professionals as a major health and safety risk.
6. Do you own any pets or support animals?
If yes, how many do you have? This is important to know if you have a renting policy that doesn’t allow pet ownership. If you have a set monthly/annual deposit for pets or a limit as to how many pets a tenant can have, make it clear to them beforehand.
7. How clean is your criminal record?
As a tenant’s credit history is significant to your property’s financial future, so is their criminal history to your - as well as your other tenants' - security. Don’t underestimate the number of ex-convicts looking for rental homes in the US today. In 2015, a tenant screening by SmartMove showed that at least 22% of all tenants-to-be had a criminal record. Even if you don’t have a problem renting out to an ex-convict, having this information with you is necessary when planning your rental unit's overall security.
8. Are you prepared to pay all moving costs upfront?
Some landlords require tenants to pay a security deposit, one month rent deposit, and first month rent in full upon signing the lease. If you are such a tenant, or if there are other moving costs attached to your house, then let the tenant know beforehand.
9. What kind of a neighbor can you describe yourself as?
A new tenant can be so unruly that they force their neighbors to end their lease earlier than intended. If they like to play loud music or bring home too many friends, you need to know so that you can append a rule within the lease that will keep their unruly behavior in check.
10. Do you have any follow-up questions?
This sounds obvious but it is very important. You need the tenant as much as they need your property, so you will be wrong not to give them the chance to ask you the follow-up questions they could have. This presents you with the opportunity to appeal to the tenant.