Property Managers: How to Properly Rent out to Potential Tenants

Property manager’s work for property owners who want their apartments, duplexes or single-family homes filled with paying tenants. However, it is important for a property manager to find the right tenant and to do so without violating fair housing laws. What are some ways to go through process in a legal and timely fashion?

Create Objective Renting Criteria

It is illegal to reject an applicant because he or she has a child or because of that person’s race or ethnicity. However, it is legal to ask how many people will be staying in the apartment and to collect contact information for all adults. It is also possible to submit applicants to a credit check and to ask that a security deposit and other fees be paid upfront. Taking these steps can help a property management company find tenants who are likely to pay their rent and otherwise abide by community rules.

Make All Necessary Disclosures during the Lease Signing Process

When a tenant comes to sign the lease, be sure to go over any disclosures related to lead and asbestos abatement. They should also be notified of their rights as a tenant under local, state or federal law. There should be a few minutes set aside during the lease signing to answer any questions that a tenant may have.

The Lease Should Say If Subletting Is Acceptable

A property owner has the right to decide whether a tenant can sublet or not. Subletting occurs when a tenant transfers the lease to another person for the remainder of the lease period. While this increases the chances that the rent gets paid, it can also result in people living in an apartment who haven’t been vetted. Ideally, the lease will clearly state whether this is allowed or not.

Landlords Should Understand Their Limitations

After a tenant takes possession of a property, he or she has the right to privacy. While a landlord can enter a property, the tenant is entitled to proper notice. In most cases, that means 24 hours before the landlord or property management representative arrives. Furthermore, arrangements should be made to show up when it is convenient for the tenant if possible.

Property management companies are obligated to follow applicable laws related to renting properties. In addition to avoiding lawsuits, being good to tenants makes it more likely that they will stay. Ultimately, that can reduce vacancy rates and increase revenues for the property owner.