On one hand, if you allow pets you’ll likely have far more interested potential tenants. On the other hand, you might have to deal with additional damages when your tenants move out.

Whatever you decide as far as pets go is entirely up to you…that is, until emotional support animals enter the picture.

There are a lot of mixed feelings and varied reactions to emotional support animals, so it’s important to know the facts, the laws, and your rights as a landlord. Let’s go over this issue now…

What Are Emotional Support Animals?

Emotional support animals (ESA) are companion animals that provide support to a person with a disability.

They are not service animals nor are they therapy animals (those are different).

ESA’s offer recognized benefits to those with:

• severe anxiety
• depression
• PTSD
• agoraphobia
• other mental health conditions

Animals, dogs in particular, have been used in therapy and to provide support for many years, although emotional support animals are a fairly new category of support animal.

Research in this area has produced mixed results. Animals in general have been shown to lower blood pressure and increase the abundance of feel-good hormones, and some evidence suggests that PTSD symptoms can be significantly reduced with a support animal. One study in particular, conducted by American Humane, revealed that therapy dogs can relieve anxiety surrounding cancer and cancer treatment in children suffering from the disease.

Saying that animals make people happy is a lot easier than quantifying the data according to the accepted standards in psychology, though. It’s notoriously difficult to pinpoint which animals are helpful, what quality or aspect is providing the benefits, and whether or not the person with the ESA really is receiving the benefits directly from the animal or if other factors are involved. And this difficulty to quantify leads to our next topic, accusations fake support animals…

Fake Emotional Support Animals

Because it’s difficult to accumulate hard evidence, the laws can be vague surrounding emotional support animals. This vagueness can lead to people taking advantage and pretending their pet is an emotional support animal when it’s not. This is terrible because it hurts those with disabilities who really need the ESA designation for their animal.

So there is this growing issue surrounding fake support animals, but that should not encourage you to believe that everyone who claims their animal is an ESA is lying. Most are genuine.

Many people follow the proper steps and are upfront with their landlords, so don’t let a few rule breakers give you a skewed view of those whose lives truly are changed with the help of an ESA.

What the Fair Housing Act Says About ESA

All that being said, opinions are irrelevant when it comes to the laws laid out by the Fair Housing Act.

As discussed in many posts on this blog, the Fair Housing Act protects against discrimination due to race, color, national origin, religion, gender, familial status, and disability. Emotional support animals fall under the disability category, as their intention is to assist those with mental disabilities.

According to the Fair Housing Act, landlords “cannot refuse to make reasonable accommodations in rules, policies, practices, or services when such accommodations may be necessary to afford a person with a disability the equal opportunity to use and enjoy a dwelling.”

Essentially, what this means is that as long as it does not cause unreasonable burden on you as the landlord, you can’t refuse to allow an emotional support animal, no matter what your policy on pets is. 

How does a tenant qualify for an ESA?

Now, this doesn’t mean that a potential tenant can declare that they have an emotional support animal and be done with it. Since the Fair Housing Act discrimination policy covers those with disabilities, the potential tenant applicant will first have to qualify. In order to qualify, they will need to prove:

1. That they have a physical or mental disability that impairs one or more major aspects of their life;
2. That they have a record of possessing this disability, or
3. That they are regarded as having this disability.

So, someone who is in perfect health in every way, shape, and form and cannot prove that they have any type of disability would not qualify.

Additionally, they must be able to show that their emotional support animal is, in fact, necessary to help them live with their disability in the dwelling. The animal has to have a demonstrated purpose that proves their owner cannot “use or enjoy” the home without their ESA.

What Your Rights Are As a Landlord

All of this might seem a little unfair to landlords, but remember that the law does leave room for you and your rights. Keep in mind that the wording in the Fair Housing Act specifies reasonable accommodation, meaning if it causes a significant financial burden or affects your property in any overt way, you have the right to refuse.

Examples of Reasonable vs Unreasonable Accommodation for ESA’s

For example, if you have a no pets policy simply because you don’t want animals in your rental home, making an exception for a single dog or cat is a reasonable accommodation that you should allow. I just had to do this last month on one of my “no pet” rentals. At first I was annoyed, but then I realized that it’s just a dog, and the dog may really help this person have a better life.

What would not be reasonable? If a potential tenant wants to bring in a miniature horse (which have been known to be used as emotional support animals) and your rental property is in a suburban neighborhood. I think we can all agree that keeping a horse in a home without proper horse facilities would be unreasonable.

What would be an unreasonable financial burden? An example would be if your insurance policy specifies that rates will be raised if a certain breed of animal lives in the dwelling (think Pit Bull or other dangerous dog). This is an unreasonable expense, and as long as you can prove that your rate would go up due solely to the presence of the ESA, you can deny the tenant.

ESA’s Should Not Disrupt Other Tenants

If you have already leased your rental home to a tenant with an emotional support animal, and that animal has been disruptive to other tenants or caused harm to anyone, you can evict the tenant. Emotional support animals cannot bother other tenants. It is not a reasonable accommodation to ask your other tenants to put up with disruptive or frightening behavior.

Types of Housing that can Refuse Emotional Support Animals

There are also rules set in place for certain types of housing that can refuse emotional support animals. The first type is a multi-unit building (of four units or less) with one unit occupied by you, the owner. The other is a single family home that you are renting on your own, without the use of an agent, if you own 3 or less single family homes (this rule doesn’t apply if you own more than three single family homes).

ESA Letter as Proof of Need

Additionally, there are some things you can ask for to verify if the tenant has the proper documentation. The first is an ESA letter. These letters can only be written by:

• Psychologists
• Psychiatrists
• Licensed counselors
• Licensed therapists
• Nurses
• Physicians
• Social Workers

This letter demonstrates that the tenant has seen a professional about their condition, and that professional has determined that an emotional support animal is necessary to help them in their daily lives specifically due to a mental illness.

Now, there have been cases where tenants have provided fake ESA letters, but there are ways to distinguish the real deal from something fabricated. Some tips to verify the legitimacy of an ESA letter include:

• Verify the license number of the mental health professional who provided the letter.
• Ensure the professional is licensed in the same state where the dwelling is located
• Look at the date of issuance as well as the expiration date (ESA letters expire one year after issuance)
• Check if the letter specifically states the name of the ESA and what services they provide, as well as how those services relate to the tenant’s disability

Landlord Cannot Contact the Mental Health Provider or Question the Disability

Keep in mind that you’re not allowed to contact the mental health professional directly or ask the tenant direct questions about their disability or accuse them of lying. You also cannot ask for proof that their animal has been trained or certified, as there is no certification or training process for emotional support animals. If you have concerns, be tactful about addressing them.

If the ESA is Legit, and not Unreasonable, Go with it

If you’ve verified the legitimacy of the ESA letter and don’t have a case for any unreasonable accommodations, you cannot legally turn the tenant away. You also cannot tack on additional fees, such as a pet deposit or higher rent. They must be treated like any other tenant, as is the spirit behind equal housing opportunities.

People with ESA’s are just trying to make the most of their lives

Getting an applicant with an Emotional Support Animal for your rental property can be tricky and a little unnerving. But remember the Fair Housing Act exists to help those who are at risk of being unfairly treated, and you must abide by it.

So sure, getting an ESA applicant might cause a little hassle to you, especially if you were adamant about a “no pets” policy.

But just remember that people with emotional support animals are not trying to take advantage of you or pull the wool over your eyes. They’re just trying to make the most of their lives, as are we all.

The post What Landlords Need to Know about Emotional Support Animals appeared first on Landlord Guidance.

You’re lucky that you’re here! Why? Because you need to list your property for rent, and in the article below I will show you the absolute BEST WAY to do it.

If you follow my simple steps below, you’ll likely get your property rented faster, and for more money.

I’ve been a landlord for 15 years, and I’ve been in e-commerce for 5 years. This gives me a special insight on what needs to be in an online listing for a rental property.

Remember, being a landlord is a business, even if you only have 1 property. And with any business, small decisions can have a large impact on your profit line.

Imagine if you have a sloppy online rental listing. Dark Pictures at weird angles, bad text description, boring title, no instructions. You will get very few leads, and very bad leads. Which means you get a bad tenant who ultimately may not care for your property and will not pay rent.

Contrast that bleak scenario to a listing with a catchy title, intriguing description, bright & attractive photos, and instructions with a button to “Click to Apply”. You will do so much better in attracting the best leads.

In the text below, you will find (click to jump to topic):

1. Step 1 – Choose the Right Listing Platform
2. Step 2 – Create a Stellar Rental Listing (Title, Description, & Photos)
3. Step 3 – Publish Your Listing and Promote it
4. FAQ’s about Listing Your Rental Property
5. Laws Regarding Listing Your Rental Property
6. Top 5 Free Rental Listing Sites (Table)
7. Listing Your Rental Property During COVID-19 Conornavirus

So let’s start at the beginning: Decide where, meaning what website, to list your rental property on.

Step 1 – Choose the Right Listing Website Platform

Here’s the current situation with rental listing websites. Lots of the rental listing websites have gotten together and decided to share listings with each other. So if you put your listing on one site, it will show up on certain other sites. They call this “syndication”.

What you want to do is put your listing on a site that will syndicate your listing to as many sites as possible. And they must be sites that make sense for you. For example, if you have a single family home that needs a typical 1-year lease, you probably wouldn’t put it on a vacation rental site like Airbnb, because that is for short-term rentals.

I personally like a site called Avail. Because when you create your rental listing on Avail, it will then show up on the following major sites:

• Zillow
• Truly
• HotPads
• Apartments.com
• Apartment List
• Walkscore
• PadMapper
• Zumper
• Realtor.com
• DoorSteps

Avail’s online software tools are also easy to use with the strategies I give you below when you create your listing.

Also with Avail, once your leads start coming in, all the leads will go into your Avail account, where you can then ask them pre-screening questions, schedule showings, and request rental applications, credit reports, etc. It’s a “one-stop shop” for getting your property leased. And the applicant (not you) pays for the screening! Sign up for that here on Avail..

And to make your life even easier, Avail offers additional tools that help you manage the manage the property, such as digitally signing a lease, collecting rent, etc.

You can learn more about Avail by signing up for a Free Account here.

Okay, now let’s make an awesome listing that will attract some great rent-paying tenants!

Step 2 – Create a Stellar Rental Listing that Stands Out

Notice that I didn’t write, “Create a Rental Listing”. I said a “Stellar Rental Listing that Stands Out”. That is because your listing is going to be better than all the boring listings. And don’t fret; It really only takes a tiny bit more effort to have a great listing vs. a boring listing. And it’s well worth it.

Your stellar listing is going to have the following 5 elements, and I’m going to take you through each one:

Title that Hooks the Prospective Tenant

Just like the Title of a Book, or the subject line in an email that you want to be opened, the Title of a Rental Listing needs to get the prospective tenant to click on it.

With a rental listing title, you want to achieve 2 goals:

1. Deliver the Relevant info about your property
2. Convey that you are a serious, professional landlord

The relevant information to deliver is easy. It’s simply:

• Rent Amount
• #Bedrooms/#Bathrooms
• Type of Space (House, Condo, Apartment, etc. + Neighborhood)
• Key Feature

Let’s do an example:

“$1,550 – 3 Bed / 2 Bath – House in Plano with Spacious Backyard”

Notice there is not any crazy sales language such as “AMAZING RENTAL!!!”. The crazy car salesman-like language conveys that you are an amateur.

To convey that you are a professional landlord that knows what they are doing, just keep the Title short and sweet.

The “Key Feature” at the end is really your only opportunity to get creative in the title, and it should only be 2-3 words.

Here’s another example of a good Rental Listing Title:

“$950 – 2 Bed / 1 Bath – Condo in Garland – Newly Renovated”

It quickly delivers what the reader needs to know, and throws in the best key feature, that it was just renovated.

Here is a Checklist for things to NOT have in your rental listing title:

• Misspelled Words – Bad spelling conveys you are not professional.
• Bad Grammar – Also conveys you are not professional.
• ALL CAPS – No need to use all Caps. It annoys people.
• Phone Number – Does not go in Title.
• Property Address – Does not go in Title.
• Calls to Action – Things like “CALL NOW BEFORE IT’S GONE!” do not belong in the title. This won’t help you at all. It just looks bad.

Now just for fun, I’m going to quiz you: Tell me what is wrong with this Craigslist Rental Listing Title:

Your answers should be:

• It is in ALL CAPS (very annoying)
• It is using 3 Exclamation Points !!! (are they trying to yell at us?)
• Does not say how many bathrooms (rental leads need to know this)
• Does not list a Key Feature (missed opportunity to attract leads).

Now you practice writing a Title. Write out the title to your property. You just plug in that key information, and think of the Best Feature of the property. If you can’t think of a best feature, then what about nearby attractions? Is there a park or shopping center nearby? If so, your key feature could be “Park Nearby”.

Clear Property Description

Once a prospective tenant clicks on your title, they will probably look at the pictures next, which we will discuss below. If they like the pictures, they will “invest” a few more seconds reading your property description.

Now these days, people are lazy and don’t like to read. And that makes your job here a little easier. So all you have to do is write 3-4 sentences that elaborate on your title. Don’t worry, there is a formula for this too, and I will share it with you now.

When you complete the formula below, try to add in a few descriptive adjectives to excite the reader. Here is the formula for writing a property description:

{Key Feature:}{#Beds, #Baths, Type of Space, Neighborhood.}{What is Nearby}{Another Feature of Property}{Pets, Rent Amount, Smoking, Application Fee, Contact Info}.

Let’s do one together now using the formula:

“Spacious Backyard: Light and Bright 4 Bedroom 3 Bathroom House in Central Plano. Close to elementary school, and walking distance to multiple parks and trails. Large Patio in Backyard, New Stainless Appliances in Kitchen. Pet-Friendly, $1550/month, No Smoking, $35 Application Fee, Call Mary at 555-555-5555.”

Easy! The only creative work on your end is thinking about what’s in the area (parks, nightlife, stores, etc.) and a few features about the property. You can do this! Now you try!

There are a few things that you MUST AVOID in your Rental Listing Description. Otherwise you may get sued: Do not EVER mention familial status, sex, disability, religion, color, race, or national origin in your listing. Sounds easy to avoid, but even something as innocent as “looking for a nice family with kids to live here” or “great for a single person” is a violation of the Fair Housing Act.

And my last rule for the rental listing description: No ALL CAPS OR EXCLAMATION POINTS!!! It makes your property listing look cheap and desperate.

You can find more examples of Poor vs. Great property descriptions in this article.

Great Photos that are “Light and Bright”

Without pictures, 95% of tenants won’t even bother with your listing. YOU NEED PICTURES, and the good news is that getting some great pictures is easier than ever.

What you need: A Smartphone Camera. Sure, if you are into photography and you have a DSLR Camera, go for it. But a smartphone camera will do the trick.

Get your property ready: I don’t recommend doing photographs when a tenant is living in the space, unless the space is really clean and looks great (usually not the case). So wait until the current tenant moves out of the unit. Then make sure you have one of 2 set-ups:

Option 1: Completely empty and clean. This is how I do mine. There are zero items laying around. It is just a nice inviting empty house. I do the pictures right after my make-ready cleaners are done, so everything looks clean and shiny.

Option 2: Staged. This means you bring in furniture and decor to help show prospective tenants what it will look like with their own stuff. If done right, staging a rental property can look great. And you only have to do it one time and you’ll have those pictures forever. The downside is that staging is expensive. There are usually professional staging companies that charge a few thousand dollars for this service. It may be worth it for a high-end rental catering to wealthy renters. And as a side note, you usually see staging done when someone is trying to sell a home, as opposed to renting it.

Which option should you choose? See what other listings in your area are doing. My units are in the $1,000 – $2,000 rent range, and I photograph them empty and clean. And they always get rented very quickly. That’s what I recommend to most landlords.

What Rooms to Photograph? In short, photograph all of them. But pay particular attention to the Kitchen, Bathrooms, and Living Room. Those are what sell people. Also, don’t forget at least one good photo of the front of the unit, and the backyard or any other exterior spaces. Here’s your room photography Checklist:

• Kitchen
• Bathrooms
• Living Room
• Dining Room
• Bedrooms
• Laundry Room
• Common Areas
• Exterior Spaces

Good Lighting. This is huge, and I cannot stress it enough. I have found that leads are attracted to the rental photos that show the unit as “light and bright.” I guess people want to be in the bright, happy, sunny, clean light as opposed to a dark, dank, moldy dungeon. Here is a picture I just did for one of my own rental properties– notice all the light:

So open all the blinds and turn on all the lights. Flood the rooms with as much light as possible before you take the pictures. Also pick a time of day where the sun is shining into the rooms you are focusing on. Play with your smartphone camera while your taking the pictures. Sometimes tapping at different places when you are lining up the shot can change the lighting for the shot. And don’t worry if the pictures are not coming out perfect because you can still lighten them up a bit when you edit them.

A cool trick for exterior photographs is to wait until around sunset, turn on all the interior lights, and then photograph the outside of the unit. It makes for a really warm and inviting look, like in this picture below:

Angles. Take the pictures from eye level, not up high or down low. It is best to stand in the corners of the room to get the widest angles. You can usually just get 2 walls of a room into a picture to make it look good. Maybe a sliver of a 3rd wall. Here is another picture from my latest listing, taken from the corner of a bedroom:

Editing. Go home and take a look at your photos. You want to pick the 12 best pics that cover all the rooms. If you know how to edit photos with an app, try playing with the brightness adjustment tool. You can usually brighten up the pictures even more to get that “light and bright” effect. You can also crop out anything weird, resize them, etc.

Always Be Honest: In presenting your photos, you want to strike that balance between putting your best foot forward and making your unit look great, vs. being deceptive. For example, a fishbowl camera lens, or heavily photoshopping a picture, can totally mislead a prospective tenant on what the property actually looks like. You don’t want to waste a prospective tenant’s time (or your own) by misrepresenting what the unit actually looks like.

Before posting them, do a final review with this rental listing photos Checklist:

• Are the images clear?
• Are they bright and not Dark?
• Is there no Clutter in the image?
• Make sure your reflection is not in the image
• Are the images rotated so they are upright when you upload them?
• Did you get all the rooms, or at a minimum the Kitchen, Bathrooms, and Living Areas?

A final thought on photos. Should you pay for Professional Photos? If you try the above and are not satisfied with your own work, consider that a professional property photographer may only charge a couple hundred dollars. You will end up with awesome photos that can be used over and over. It is probably worth it.

But whatever you do, DO NOT post a rental listing without photos! Now let’s take a quick look at how to get your listing in front of prospective tenants so you can start generating leads.

Step 3 – Publish it and Promote it

Now that you’ve picked platform such as Avail, got your Title, Description and Photos, it’s time for the fun part – activating your listing!

If you have typed out your title and description, you can just “copy and paste” it into the listing platform. And you can upload your pictures. Then review everything one last time and click “publish”. Your listing will go live and you can wait for the leads to start coming in. If you are using a listing site like Avail, the listing will start popping up all over the internet.

But don’t stop there. Share your listing on Social Media. Just by sharing it with your friends on Facebook, you’ll start to generate interest. You never know who knows somebody looking for a rental in your area. It’s free advertising and it only takes a second so do it!

If you are proud of the pictures, share them on Instagram. It only takes a second and this will also generate more interest.

If you know any realtors in your area, send the listing link to them. Just be aware that when a realtor brings you a tenant, they will want a fee, so be ready to negotiate with them.

Let’s check out some common questions around listing your rental property online.

FAQ’s about Listing Your Rental Property

Here are a few common questions that come up when creating a rental property listing:

How much does it cost to list my rental property for lease?

Answer: Most sites such as Avail are Free to publish the listing. Then there are other services you can purchase for a small amount, such as digital lease signing, rent collection, etc.

Do I have to add pictures to my listing?

Answer: You don’t have to, but these days, it’s almost a waste of time not to. A picture is worth a thousand words. The pictures are what get leads interested in your property.

What is the best time of year list my rental property?

Answer: Well, whenever you need a tenant! But based on data, you will likely get it rented the fastest and for slightly more rent if you list it from April to October.

Can I ban smokers and people with pets?

Answer: Smokers, yes, you can say “this is a no smoking property.” People with pets: yes, unless it is an emotional support animal. But I would not recommend banning pets, because you will eliminate a ton of leads. Americans love their pets! If you’re worried, you can charge a larger pet deposit, and even make it non-refundable. And if you’re really, really worried, then just say “no pets”.

Now let’s do a legal review to make sure you doing get into trouble by violating the law when you post your listing.

Laws Regarding Listing Your Rental Property

The Number One Law to think about when listing your rental property is the Fair Housing Act. It basically says that when listing your property (or doing anything related to housing), you may not ask or mention anything about the following:

• Race
• Color
• National Origin
• Religion
• Sex
• Familial Status
• Disability
• Sexual Orientation*

I added Sexual Orientation with an “*” because even though it’s not part of the Federal Fair Housing Act, it is part of many state and local housing laws. And I bet that it will soon be added to the Federal Act. Therefore DO NOT discriminate based on someone being gay, trans, etc.

And even if you follow this law when you create your listing, you can still get sued if you don’t rent to people based on the above categories. Or if you set higher standards for a prospective tenant who is in one of those protected groups.

But how would you ever get caught? The Department of Justice does this: They send 2 people to apply for the same home. One will be in a protected class, say for example a black immigrant, and the other will be a “regular” white, christian male native citizen. They will see if there are more difficult application standards for the immigrant. If the landlord is making it more difficult for the immigrant, then Landlord will be in some hot water.

So what can you discriminate on? Because Landlords do indeed get to choose their tenants, correct? The only things you can discriminate on in your rental listing are:

• Bad Credit
• Bad Rental History
• Smoker?
• Income Level
• Pets?

So follow the Fair Housing Act, don’t mention anything about those protected classes, and treat everyone fairly and equally!

Top 5 Free Websites to List Your Rental Property

Rental Listing Site	Cost?	Broadcasts to Other Sites?	Extra Tools?
	FREE	YES (12+)	YES
	FREE	YES (3)	YES
	FREE	YES (2-3)	YES
	FREE	YES (3)	YES
	FREE	YES (3)	YES

How Does COVID-19 Coronavirus Affect My Rental Property Listing?

Well, we all want to stay safe from Coronavirus. And that means you cannot have tons of people all at once looking at your rental property. Zillow offers 3D Home Tours so that prospective tenants can do a tour online. But we must admit, this is no substitute for the real thing.

Showings during Covid? When prospective tenants want to see your property, make sure they are already screened. That way you are not wasting your time and putting yourself at an unnecessary risk. If you have multiple applicants that need to see your property, make sure they wear a mask, and space them out over time (maybe 1 per day, or 1 every other day).

What about signing the lease? With all the lease-siting technology available, such as “contactless” digital lease signing from Avail, you do not need to sign a lease in person with the tenant. Avail will just email them a link and it is easily completed over the internet.

Collecting Rent? Just as easy. Don’t put yourself at risk by collecting rent in person. They can mail a check, use PayPal, or Avail has plenty of rent-collection tools that allow your tenant different ways to pay.
Check out this article to learn about “contactless” rent collection.

Maintenance Issues? With smartphones, tenants can send you pictures. No need for you to go over there. Avail helps you by letting the tenant open a maintenance “ticket” along with pictures, and you can decide how to handle it. If a plumber or technician must go onto the property, make sure they wear a mask, cover there shoes with booties, etc.

So as you can see, with the right digital tools, you can do a lot to avoid COVD-19 as a landlord.

Invest in Your Rental Listing and it will Pay You Dividends

When creating your rental listing, keep in mind that it is no different than maintaining your property itself. Once you create a good listing with good pictures and text, you can use it over and over again. A good listing will get a higher rent premium for your property, and a tenant that pays rent on time. It’s part of being a successful landlord.

I hope you enjoyed this article and found it helpful. I want to wish you success in creating your own awesome rental property listing that will bring you a solid, rent-paying tenant.

And remember, for your own sake, when you list your rental property, ALWAYS treat applicants and tenants with the utmost respect and professionalism, no matter what!

The post List Your Rental Property in 3 Easy Steps – with Checklists appeared first on Landlord Guidance.

And how you can avoid making the same mistakes!

If only we had the ability to see into the future and prepare for things we couldn’t anticipate under ordinary circumstances. But life doesn’t give us this loophole, and instead we have to do our best to roll with the punches and adapt to every situation.

There is a silver lining, of course. Experience offers wisdom, and those who are more experienced than we are often pass down the knowledge they have gained. So let’s learn from their mistakes!

Being a landlord is challenging, but it’s also incredibly rewarding (and not just in a monetary sense). To get started on the path to success, here are five things experienced landlords wish they’d done differently, and how you can learn from their mistakes:

1. ALWAYS Screen Your Tenants

Even if it’s a friend of a friend. This isn’t about mistrust; it’s about covering all your bases. If you had a friend who you knew never returned things they borrowed, how likely would you be to loan them something of yours? It’s the same concept, but in real estate the stakes are even higher. It’s an unfortunate truth, but you can’t rely on instinct alone or your belief in the goodness of others when you’re renting out your property. Instead, you have to look at the data and draw your conclusions from there. 

There are a few common practices when you’re screening tenants. These include:

• Using a Good Rental Application Form
• Asking about employment both past and current
• Verifying income
• Looking at previous rental experience
• Inquiring about evictions and/or late rent payments
• Running a background and credit check
• Optional: contact previous landlord(s) and employer(s)

Not every landlord will feel the need to go through all of these points, but if you want to have the most informed picture of your tenants and any possible hiccups that could occur down the road, each one is necessary. It might be more work in the beginning, but if you find out something that you only would have known through a thorough screening process, you’ll save yourself a lot of headache and expense in the future. 
If you’re not sure where to start with tenant screening, visit our tenant screening partner Avail here.

2. Make Sure You’re Prepared for Vacancies

As optimistic as you might feel, you should always be prepared to have vacancies. When you’re first renting out your property you’ll have a vacancy period of course, but many more can happen and they’re not always planned out. Unexpected move-outs, little to no notice, and evictions can all lead to longer periods of vacancy that you aren’t ready to deal with. 

Unless, of course, you prepare beforehand.

During a vacancy, not only will you not have rental income, you will also be responsible for utilities and upkeep if you weren’t already. See if you can find out the average vacancy rate for your area to get an idea of the potential yearly cost. This is part of budgeting for a rental property; if you can’t afford vacancies, this form of investment might be too high risk. 

To prepare for vacancies, set aside a separate savings account that acts as your emergency fund specifically for rental-related issues. You should already have this for general repairs and such, but keep enough in there for at least a three month vacancy. 

You can also look at things you’re doing that might extend the vacancy period, such as not including adequate pictures in online listings or charging too much. It’s all well and good to hold out for the right tenants, but if you’re charging way more than other landlords in your area, you’ll end up losing more than you could potentially make.

3. Read the Fine Print, Even if You Wrote the Rental Agreement

No matter what type of contract you’re signing, ALWAYS read the fine print. There is almost a 100% guarantee that something in there could come back to bite you. This applies to rental agreements as well, even if you’re the one who drew it up. If you have an issue with a tenant and they exploit a loophole you didn’t realize was there, you’re going to wish you had paid more attention. 

This is especially common when you find a template online to create your rental agreement from. Depending on the source, there might be a lot of legal jargon that you’re not sure you understand, or provisions you think will never be applicable to your situation. If you’re not sure what it means, do not include it. 

Reading the fine print also has an opposite point you should consider too; don’t let your agreement be too sparse. A one page rental agreement that says, “You’ll use this property and in exchange you’ll pay me this much in rent” is not a well thought-out document. At the very least, your rental agreement should cover:

• The agreed upon rental amount
• Late fees and on which date the fees will be applied
• Total move-in costs and how much of that is refundable
• Conditions for which the refund is applicable (what kind of damage will result in deposits being withheld, how the value will be assessed, etc.)
• A severability clause
• Rules regarding pets
• Rules regarding visitors and overnight guests

There are so many more important points to include, so do your research. We have an entire article devoted to lease agreements that you can check out for more information.

4. Don’t Rule Out a Property Manager

To make the most profit, you will probably decide against a property manager or property management company, at least early on. Many new landlords go into the process confident that they can handle a single rental property with ease, but sometimes it can turn into more of a day job than a side project. When this happens, don’t dig your heels in and refuse to even consider a property manager. 

There are factors to consider when deciding if one is actually necessary or just a convenience, and everyone will come to a different conclusion based on their situation. You might not mind a little stress and have more free time than other landlords to devote to your rental(s). Or, you might be a mess of anxiety and nerves desperately wishing you had never entered into real estate. 

If you fall into the latter category, a property manager might be exactly what you need to make real estate fun again. You will have to meet with a few property managers to find the right fit, and you want to ensure that the people you choose will represent you well and take care of your tenants just as you would. Many potential renters shy away from homes that are managed by companies because there are so many nightmare stories out there. If you choose the right company, however, you can potentially keep tenants for longer because their problems will be dealt with right away. 

So, if it can save you time, money, and mental health, a property manager can be a smart choice.

5. Rentals Are Businesses

There are a lot of activities that make good hobbies: reading, knitting, making model airplanes, etc. Owning rental properties is not one of those activities. If you want a side project that doesn’t take up much time and never leads to surprises, real estate is not the game you want to be in. When you commit to becoming a landlord, you’re essentially starting a business. 

This means you need to be keeping track of profit and loss, evaluating to determine how you can increase profit, and managing your customer service end (whether you’re customer service or a property manager is). If you treat it as a hobby, you will quickly be overwhelmed by all the details and could potentially lose a lot of money if you don’t work to find and keep tenants. Sure, you’ve probably heard stories about landlords who put in 10 or so hours upfront to get their property ready and find good tenants, then after that it was pretty much hands off other than minor repairs. These are the lucky cases, and they’re not all that common. 

As a landlord, you’re in charge of three areas: tenants, the property, and your finances. Each of these pieces can take up a lot of your attention, but they require balance. Don’t focus so much on finances that you lose tenants due to ridiculous costs, and don’t try so hard to please your tenants that your finances take a hit. Decide how much to put into each area to maximize benefits in all three, and you’ll have a successful business that brings in the money for years to come.

You can also take advantage of Online Property Management Software tools such as Landlord Studio, which helps you keep track of finances, set reminders for specific properties, and even screen tenants. 
Entering into the real estate realm is like stepping into a foreign country without a guidebook. You don’t know where to go, and you probably don’t even speak the language. In both cases, others are your greatest resource. By listening to advice and following the tips of those that are more experienced, you can continue on, confident that what you seek is right around the corner.

The post Top 5 Things Experienced Landlords Wish They’d Done Differently appeared first on Landlord Guidance.

You don’t just need any tenant for your rental property, you need the perfect tenant.

Your perfect tenant will pay rent on time and take great care of your investment property. A bad tenant will be a constant headache and cause you to lose money.

And these days, your perfect tenant is increasingly online, not driving around or looking at newspapers. So you need to list your property online. Not only will it reach better qualified renters, it will also reach a lot more of them than a simple yard sign.

And as you’ll see, many of the free online listing sites such as AVAIL incorporate additional helpful tools, such as the ability of the prospective tenant to apply online, and your ability to screen them with credit checks and background checks.

To help you decide which site is best for you, in this article I’m going to list, chart, and review what are currently the best, mostly free, rental listing websites for landlords. Many of them are grouped into “syndicates” which I will go over below.

Scrolling below you’ll find (click to jump to Topic):

1. Free Rental Listing Syndicates Explanation
2. Free Rental Listing Websites Comparison Table
3. Review of Each Listing Site
4. FAQ’s about Listing Your Rental Property
5. Law Regarding Listing Your Rental Property Online

So let’s do it. Take just a few minutes to learn the rental property listing landscape and you’ll be on your way to a great tenant. First thing: What the heck is a “syndicate” in this context?

Free Listing Site “Syndicates”. Sounds Shady.

Well, corporate consolidation has been happening in many industries, and Free Rental Listing Websites are no exception. As they have bought each other, they have formed groups or “syndicates.” What that means is that if you list your property on one website in a syndicate, they will publish, or “syndicate,” your listing on other websites in their group.

Some sites like Avail.com publish to multiple syndicates which gets you lots of exposure. (Avail says 12 plus sites).

To help your understanding, here are the major Free Property Listing “syndicates”:

• Trulia, Zillow and HotPads
• Realtor.com, Doorsteps, and Cozy
• Apartments.com, ForRent.com, ApartmentFinder.com, Apartementhomeliving.com, Apartamentos.com
• Zumper, PadMapper.com, and WalkScore.com
• Rent.com, Rentals.com, Lovely, ApartmentGuide

Okay, on to the chart…

Top 20 Websites to List Your Rental Property

Rental Listing Site	Cost?	Broadcasts to Other Sites?	Extra Tools?
	FREE	YES (12+)	YES
	FREE	No	No
	FREE	YES (3)	YES
	FREE	YES (2-3)	YES
	FREE	YES (3)	YES
	FREE	YES (5)	YES
	FREE	YES (4)	YES
	FREE	No	Not Really
	FREE	YES	YES
	FREE	YES	YES
	FREE	YES (3)	YES
	FREE	No	No
	FREE	YES	YES
	FREE	YES	YES
	FREE	YES (5)	No
	$299/year	No	No
	FREE	YES	YES (thru Avail)
	FREE	No	No
	FREE	No	Yes
	$499/year	YES (2)	Yes

Here’s my Review of the Top 20 Websites Where You can List Your Rental Property

1. AVAIL

Avail is one of the top sites on my list because they are easy to use, they syndicate your listing to over a dozen sites such as Zillow and Walkscore, and they have great tools to manage the applicants and even manage the property (signing a lease, collecting rent, etc.). It is geared for landlords with 10 properties or less.

One thing I like about listing your rental property on Avail is that when leads come in from the other websites that Avail has syndicated to, those leads will go directly to your Avail account (and your email). Then, directly from your Avail account, you can:

• ask the lead some pre-screening questions,
• schedule a showing,
• request rental applications and credit reports (at the applicant’s expense, not yours).

From that point, if you want to, you can take advantage of Avail’s other tools. This would include signing a digital lease with the tenant, collecting the deposit from them, and then collecting their monthly rent from them, all inside your Avail account. It’s really a one-stop-shop for property management. I wish this had been around when I started landlording about 15 years ago!

As an affiliate, I can tell you that these guys are very professional and try really hard to provide the best software for landlords. You can read more reviews on Avail HERE and you can post your rental property listing for free HERE.

2. Craigslist

Unless you’ve been living under a rock, you’ve heard of Craigslist. They started way back in the early years of the internet, 1995, in San Francisco. Craigslist still maintains it’s signature very basic Classified Website feel.

The good news for you, the landlord, is that’s it’s very quick and easy to post your rental property for lease on Craigslist. You just go to the “apts/housing” section and click “post,” then follow the prompts. Make sure you have your pictures ready.

Craigslist does not syndicate your listing out to other sites, but since it’s free and quick, you should still use it to supplement your search for the perfect tenant.

Scams? They can definitely happen. Be careful of fake messages, and be aware of the latest rental scams, but don’t let that stop you from getting your property listed. I have found many great tenants on Craigslist over the years. The point is that you get good and bad leads on Craigslist. So just be aware of that and weed out the bad rental leads, avoid scams, and call back the good leads.

3. Zillow Rental Manager

Zillow is one of the biggest real estate websites out there. It was founded in 2006 by a couple of Microsoft executives along with the cofounder of Hotwire.com.

For us landlords, the Zillow Rental Manager is one of the top places to list our rental properties. Zillow brags that 32 million rentals visitors are on their platform each month. So your listing will definitely be seen by lots of folks. Your listing will also syndicate out to Trulia and Hotpads getting you even more exposure.

Zillow also offers additional tools for a fee:

• You can collect Online Rental Applications from leads
• You can do your tenant screening through Zillow (credit reports, criminal background check, eviction check)
• You can collect rent payments

Kind of like Avail, Zillow is trying to be a one-stop-shop for landlords.

4. Trulia

Founded by a couple of Stanford students in 2005, and bought out by Zillow in 2015, Trulia bills itself as a home and neighborhood site for buyers and renters to find homes and neighborhoods by learning details about the neighborhood such as commuting time, crime, schools, churches, local businesses, etc.

Posting on Trulia is Free. If you are posting an entire unit or home from rent, it will direct you to the Zillow Rental Manager and syndicate the listing out to Trulia, Hotpads and Zillow (all 3).

If you are just posting a room for rent, your listing will appear on Trulia and Hotpads, but not Zillow.

Cool feature: They will give you a unique URL for your listing that you can post on social media, text to people, etc. This will help you spread the word about your property and help you land a solid tenant.

5. Cozy

Founded in 2012 and headquartered in Portland, Oregon, Cozy has been working hard to make renting more simple and bring integrity to the housing process. They are now owned by CoStar, who also owns Apartments.com.

For you as a landlord, it is free to list your property on Cozy. Your listing will then syndicate out to Doorsteps.com and Realtor.com, getting you lots of exposure. Cozy will also give you a shareable link so you can post your listing all over social media. Another cool feature is that there is a Built-in Rental Application in each listing, so interested leads can start the application process right away.

Optional Services by Cozy (for a small fee)

• Rent Estimate Report
• Collect Rent Payments from Tenants

Services the Renter Pays For

• Tenant Screening Reports
• Renters Insurance
• Pay Rent With Credit Card (extra fee covers the transaction cost)

Overall, Cozy was built for landlords, which makes it a nice fit for the small-time Landlord. Cozy also owns the blog Landlordology, which has many helpful articles about being a Landlord.

6. Apartments.com

Owned by CoStar, and associated with Cozy and Doorsteps, Apartments.com boasts 35 million renters per month coming to them looking for a place to rent. For you, this means lots of eyeballs on your rental listing.

Although named and geared for listing apartments, you can also list single family homes, townhouses, condos, duplexes. So pretty much any type of residential listing. It is Free to list your rental on their site, and they advertise that it only takes you 5 minutes.

Your listing will get pushed out to 5 different sites:

1. Apartments.com
2. ForRent.com
3. Apartement Finder.com
4. apartementhomeliving
5. Apartamentos.com

Apartments.com advertises their site across media channels (TV, billboards, radio, etc.) so renters from all different segments of society will go to the site and potentially see your rental. I would rank this as one of the top sites to get exposure to your apartment unit listing. But if I were leasing out a single family home, I would stay away because the branding seems to attract people looking more for apartments.

7. Rent.com

Founded back in 1999 and associated with the well-known Apartment Guide, Rent.com is known for catering to the transient millennial population.

When you list with them, 25 million visitors will view your listing across the following sites:

1. Rent.com
2. Rentals.com
3. Lovely
4. ApartmentGuide

They also offer extra tools such as Online rental applications, tenant screening and rent collection.

Depending on the number of units you want to list, it will push you to one of those partner sites to do the actual listing. For example, as a small-time landlord I clicked on 1-19 units and it took me to the listing page for “Rentals.com.”

8. Sublet.com

Sublet.com has an older feel to it, but is still worth listing on because it is free.

You can list any type of rental housing for free, not just subleases. That means short term rentals, long term rentals, furnished, not furnished, private rentals, or just rooms to rent.

Although it is free to list, you can purchase a Premium Listing and Tenant Database which they say will get you 50 times more leads.

The “Rental Tools” they offer seem to just be outsourced services and not directly integrated into their platform. For example their rental agreements are just something you purchase, download, and edit yourself. This is pretty old-school compared to the integrated system tools offered by sites like Avail.

9. Doorsteps

Owned by Move.com, Doorsteps is part of the Cozy.com-Realtor.com-Doorsteps.com Alliance. Sounds like an airline alliance doesn’t it?

So essentially, Doorsteps has “partnered with Cozy to allow landlords to list their properties, accept online applications, and screen their applications with background checks and credit reports.” And of course your listing will show up on Realtor.com, Move.com, Cozy.com also.

You can collect applications, and have the tenant-applicants pay for their own tenant screening (credit reports and background checks).

For this reason, I do recommend Doorsteps because it syndicates and gets you great tools.

10. Move.com

Founded way back in the infancy of the internet days, 1993, Move.com operates a bunch of real estate websites, some of which I’ve already talked about in this post, and the most powerful being Realtor.com.

Move.com has a longstanding relationship with the National Association of Realtors, a powerful trade group.

As of this writing, when you visit their website they just list all the brands they own. So if you want to leverage their reach I would just go list on one of their sites such as Realtor.com.

11. Zumper

What a funny name. Based in San Francisco (like any good tech company), Zumper has raised 90 million in VC funding. What does that mean for you, the landlord? Well hopefully it means that have built a robust listing network as well as tools to help you as the landlord. But it also means they have to make money from selling services so they can provide a return to those investors.

When you list with them, your listing will also be marketed on PadMapper.com, Facebook, and WalkScore.com.

Like a lot of these other sites, you can gather applications, screen possible tenants, and even collect rent (they use Stripe).

12. Oodle

Oodle is a big classified website like Craigslist, but they pull in classified listings from other sites like eBay.

It’s quick and free to list your rental, and prospective tenants can filter through listings.

You won’t get syndication or other landlord tools, but if you’re looking to spend 5 minutes expanding your listings reach, go ahead and list it here. Of course keep your guard up and be aware of the same kind of scams you can get with Craigslist or any other classified site.

13. Hotpads

And… back to the Zillow-Trulia-Hotpads Alliance.

When you go to Hotpads to list your rental, you are directed to list it on Zillow. This will cause it to show up on Hotpads, Zillow, and Trulia.

Hotpads was known for having an interactive map upon which users could search for housing. They were bought by Zillow in 2012, hence the alliance.

A lot of prospective tenants use Hotpads for the good information it provides, so I do recommend you make sure your listing gets pushed out to it.

14. Rentals.com

Rentals.com is almost the same as Rent.com above, and uses the same platform and sister websites to syndicate your listing. The only difference is that Rentals.com seems to be more geared for smaller landlords.

15. RentDigs

RentDigs was created by Landlords, so we have that going for us!

It is Free, and it will syndicate out to Oodle.com, Trovit.com, claz.org, Mitula.com and RentJungle.com (um, who?). The Syndication is nice, but keep in mind that none of these sites are as high-traffic or quality as some of the other sites reviewed above.

One cool feature of RentDigs is that you can see how often your rental advertisement is being viewed.

But a downside is that they do not offer the “plug-and-play” landlord tools like built-in tenant screening, lease agreement signing, and rent payment collection.

Should you post on it? Yes, because it’s quick, free, and will get more eyeballs on your listing!

16. People With Pets

Have a Pet Friendly Apartment Complex? Or want to target Pet Owners? This is a place to do that, but obviously not the only site.

“Celebrating over 75 years online” (in dog years, LOL), this site carved out their niche as a place where landlords can list pet-friendly homes for pet owners to find.

Their site shows a “Free Membership” but I can tell that you won’t get to list your property with that free option. So It looks like you’ll be paying $299 per year to list your property.

Is it worth the $299? That depends on how bad you want to target pet owners. For me, I would prefer non-pet owners, although I don’t discriminate (I just get a pet-deposit).

17. WalkScore

Owned by RedFin since 2014, Walk Score’s mission is to promote walkable neighborhoods. Walkable neighborhoods are one of the simplest and best solutions for the environment, our health, and our economy.

To that end, they assign a “Walk Score” to every listing, as well as help you understand the local neighborhood, crime rates, nightlife, commute time, etc. In other words, the prospective tenants can see lots of data.

How to list your property on Walk Score for FREE? Create free rental listings with Avail and your listings will automatically be posted on Walk Score (as well as many other sites).

18. Facebook Marketplace

Yes, you can list rental properties on Facebook. Facebook essentially built the functionality into their Advertising Platform. That got them in trouble recently because their Ads Platform allowed landlords to target ads to groups in ways that violated the Fair Housing Act.

So is it Free? Well, kind of, which is why it made my list. You can post the listing for Free, but if you want more than a few people to see it, you will likely need to run paid ads.

Facebook also does not have all the built-in Landlord tools that sites mentioned above have.

I personally would not start my search for a tenant on Facebook.

19. airbnb

I can’t write a post about Free Rental Listings without mentioning this big company. Airbnb is good for short-term guests. You will be a “host” and not a Landlord.

It is Free to list your property, but there is more involved than just handing over the keys. You need to do everything the way the Airbnb platform requires you to.

I’ve never been an airbnb host, but it definitely seems like an active job, and not a passive-income activity.

20. Vrbo

It stands for “Vacation Rentals By Owner”. Founded in 1995 as a service for homeowners to list their properties for short term rental, this site is similar to Airbnb. It’s now owned by HomeAway, which is owned by Expedia.

So when you list on Vrbo, you also get Homeaway, and vice versa.

Free? Not really, because you either pay a booking fee when someone books, or if you make rental income of more than about $7,000 per year, it makes more sense to pay the $499 Annual Fee.

That being said, Vrbo-Homeaway and Airbnb seem to be the top-ranked sites by owners for playing the short-term rental game.

Free Rental Property Listing Frequently Asked Questions (FAQ’s)

Question 1: How do I list my Rental Property for Free?

Answer: Simply go to one of the Free Rental Property Listing Websites I’ve written about above and get started! It will go much faster if you have pictures of your property ready beforehand.

Question 2: What is not allowed in my Free Rental Listing

Answer: Anything that violates the Fair Housing Act by discriminating against protected classes of folks. (see below).

Question 3: What do I do after I find an interested prospective tenant who wants to lease from me?

Answer: This is where the extra “tools” on many of these sites come into play. If you don’t know how to be a property manager (showing the property, signing the lease, collecting rent, etc.), these sites can help by providing the tools. They can help you collect rental applications, screen the tenants, sign the lease, and collect the rent.

Just make sure you still “show your face” to the tenant so they don’t only deal with an email address. They need to know you’re a real person who expects the rent to be paid on time.

Question 4: Do the Extra Tools on these sites cost money?

Answer: A lot of the tools are paid for by the tenant, such as the Rental Application Fee and the Credit and Background Check. And then there are optional tools the landlord can opt to use, such as digital lease signing and rent collection, that may cost you a fee depending on the site.

Question 5: Should I still put a “FOR RENT” sign in my yard?

Answer: The website Rentec Direct has a Great blurb on the Pro’s and Con’s of using “FOR RENT” signs. Essentially, a FOR RENT sign can help by getting tenants from the local area who are driving around looking. But it can hurt by inviting burglars, and generating a lot of annoying phone calls from unqualified leads.

Follow the Fair Housing Act When Listing Property Online

Want to get sued? No? I didn’t think so. So follow these rules when you list your property on these free sites. Don’t ask about, mention, or target renters based on:

• Race
• Color
• National Origin
• Religion
• Sex
• Familial Status
• Disability

Even though not part of the Fair Housing Act, there are many other laws protecting Sexual Orientation as a class, so definitely do not mention or ask about that either.

Also, even if your listing is clean, you can still get sued for simply not renting to people based on the above. An example would be denying that a rental unit is available, or setting tougher standards for someone in one of those protected classes.

How do Landlords get caught? The Department of Justice will call an apartment complex or landlord with a “foreign sounding” person and an “non-foreign sounding” person. They will see if the landlord treats the applicants differently, or if the apartment tells the foreigner that there are no units available, etc.

So what can you discriminate on when deciding whether or not to rent to somebody? Glad you asked. These:

• Bad Rental History
• Smoker?
• Bad Credit
• Income not enough for this unit
• Pets

Listing Your Rental Property Online is Powerful

In this article, we went over 20 websites to list your rental property online. Most are Free to post the listing, and many of them are part of listing “syndicates” or groups.

Many of them also offer extra landlord tools to help the landlord manage the property, making a seamless transition from listing, to applicant, to happy landlord-tenant relationship.

I want to wish you much success in getting your rental property listed online, and in landing a great tenant! And remember, successful landlords always treat their tenants with respect and in a businesslike manner no matter what!

The post The Top 20 Rental Property Listing Sites for Landlords in 2020 appeared first on Landlord Guidance.

So you’re looking for a Free Rental Agreement from TREC, huh? I did the exact same thing just a few months ago. I’m so used to the wonderful Free One to Four Family Residential Contract from TREC, and I surely thought our friends at TREC would give us a Free Texas Residential Lease as well. So… In this article I want to:

1. Show you some Free Lease Agreements, including the Free TREC Lease Agreements (which probably won’t work for you – sorry).
2. Explain to you what TREC is and it’s purpose
3. Go over the Free TREC Rental Agreement for Texas Landlords in case this is indeed what you’re here for

Free Rental Lease Agreements, Including TREC Residential Agreement

Below are some Free Leases that work for Texas. As I will explain below, the TREC leases are not Standard Residential Leases. They are unique leases for special situations where the Buyer of a Residential property will occupy the property for no more than 90 days prior to closing on the purchase contract, or where the Seller will stay in the property that they just sold for no more than 90 days. Therefore the TREC Leases will not work for a normal Landlord-Tenant Lease Situation, unfortunately. Below are the 2 TREC Leases, and some Standard Rental Agreements that might work for you: 1. TREC Buyers Temporary Residential Lease 2. TREC Sellers Temporary Residential Lease 3. Lone Star College Lease (Standard Lease) 4. Free Texas Rental Agreement from eForms (Click Here) 5. Free Standard Lease Agreements from Landlord Guidance (our site):

What is TREC anyway?

TREC stands for Texas Real Estate Commission. TREC is the Texas agency, based in Austin, that governs real estate practices in the great State of Texas. The Commission is made up of nine members who are appointed by the Texas Governor and are approved by the Texas Senate. Six of the members are licensed Real Estate Brokers and three of them are members of the public who are not.

TREC does the following tasks:

• Enforces Real Estate Laws and Regulations
• Issues Real Estate Licenses
• Renews Real Estate Licenses

As part of these Tasks, TREC promulgates a bunch of Free Real Estate Forms on it’s website (but not Standard Residential Leases – boo hoo).

TREC also serves as the state’s regulatory agency for:

• Real Estate Brokers and Agents
• Inspectors
• Appraisers
• Education Providers for Real Estate and Inspection Courses
• Residential Service Companies
• Timeshare Developers
• Easement (Right-of-Way) Agents

In my opinion, excessive regulation in general is bad, but some regulation of the real estate industry is indeed necessary, as there are lots of opportunities for bad actors to take advantage of naive consumers. So I’m glad TREC does what they do, I just wish they would give us a a few more free forms!

About the TREC Buyers Temporary Residential Lease

Sometimes a Buyer of a property will move into the property prior to closing (finalizing the sale). In this situation, usually the Seller will want to be paid for the time the Buyer is living there. They don’t get to live there for free, unless that’s negotiated as part of the agreement. So to solve the problem, the Buyer will sign a temporary lease will the seller, effectively becoming a renter (Tenant), and the Seller will effectively become a Landlord. To facilitate this situation, TREC came out with their Temporary Lease. This is a unique kind of lease that is for no more than 90 days. It should not be used as a regular Residential Lease, as it was not made for that and is lacking important provisions that a standard lease would have. If you are in this situation, and you need this kind of temporary lease, then make sure you have your lawyer or licensed realtor go over the details. It is a little trickier than doing a normal lease, because it’s being done as part of the sale of a property. They are tied together and need to be done correctly.

About the TREC Sellers Temporary Residential Lease

What if your are selling your house, and the closing date is in a week, but your new home won’t be ready for 2 more months?! Will you live on the streets? In a hotel? With your mother-in-law? I’d prefer the streets to this last option, but there is a better solution. Negotiate with the buyer to let you stay in the home. How? Sign a TREC Sellers Temporary Residential Lease. Signing this lease will turn you, the seller, into a lowly renter. Just kidding. We’re all renters at some point in life. You will become a Tenant in your own home (it’s not really your home any more), renting the house from the new owner for those 2 months. The new owner becomes the Landlord and collects rent from you. Like the situation above, this is a unique and temporary situation, and is for no more than 90 days after closing of the purchase contract. As I mentioned above, even thought you can get a Free TREC form to facilitate this situation, please do it with your Realtor or Lawyer. It’s tied in with the sale of a property, and everything needs to “jive” together. You don’t want problems when it comes to buying, selling and renting.

Final Thoughts about TREC Residential Rental Lease Agreement Forms

1. TREC does not “promulgate” or make a Free Standard Rental Lease Agreement for us to use.
2. TREC does however promulgate a TREC Buyers Temporary Residential Lease and a TREC Sellers Temporary Residential Lease
3. TREC licenses and regulates the real estate industry in Texas
4. There are other Free Leases available in Texas. You can Create a Free Residential Lease Here using the eForms form builder.

The post Residential Lease Agreement from Texas TREC appeared first on Landlord Guidance.

For many people, their pets are their children, yet it is increasingly difficult to find places that allow pets in a rental property. As a landlord, one of the decisions you will have to make is whether you should allow pets in your rental. Before you shout out a resolute “no,” there are actually several ways that renting to tenants with pets can benefit you. Don’t believe it? Read on, and become a believer.

Get a Free Lease Pet Addendum Here

#1 Pet rent, fees, and deposits can more than cover the cost of potential damage.

If your tenant has a pet, you can charge pet rent. Rent per pet can vary anywhere from $10 to $100 a month depending on the size and breed of the animal. In addition to pet rent, landlords are entitled to a non-refundable pet fee as well as a pet deposit. So besides the typical security deposit, you have the pet fee, pet deposit, and pet rent to cover the cost of any damages.

Even if the pets in your rental property do a little damage, you will likely have more than enough money stashed away from all these pet fees to make the repairs. Just be sure to check the laws in your state because some states don’t allow you to use security deposit funds to cover pet damages if you’ve also charged your tenants a pet deposit.

#2 Pet owners are likely to be long-term tenants.

If you’re renting to tenants with pets, chances are that they will prefer a longer tenancy. Why? It’s kind of difficult to find a place that allows pets in a rental property. Once your pet-owning renter settles in, it’s likely that they will want to stay put for a while. For a landlord, that means lowered vacancy rates and fewer expenses that you incur before a new tenant moves in, like cleaning carpets or painting walls.

#3 Being a pet-friendly rental means you’ll have more applicants.

68 percent of Americans own pets, yet it’s not too common to stumble upon a pet-friendly rental. By allowing pets in a rental property, you open up your customer base exponentially. Now, if you’re in a city with a shortage of rental properties, you don’t need more applicants, but if you’re in a small town with lots of rental vacancies, it might behoove you to rent to tenants with pets.

#4 Protect your property from unauthorized pets.

Even if you have a strict no-pet policy, you are bound to have a rebellious tenant or two who bring their pet anyway. By allowing pets in a rental property under certain conditions and guidelines outlined in the lease and pet policy, you reduce the likelihood of unauthorized pets.

By being a pet-friendly rental, you will have the financial safeguards in place (i.e. pet deposit, pet fees, pet rent) to repair any pet-related damages. Furthermore, if a tenant has money on the line (i.e. refundable pet deposit), they are more apt to ensure that their pet does not damage the property. However, if you’re not pet-friendly and a tenant’s unauthorized pet causes damage, you only have the security deposit to work with to make any repairs.

#5 Pet owners tend to be more responsible.

Though not true in all instances, pet owners tend to be more responsible than non-pet owners. I mean, they’ve willingly chosen to take on the responsibility of caring for an animal that can’t fend for itself. With a responsible tenant occupying your property, you probably won’t have to worry about late rent and noise complaints (besides maybe the occasional bark).

#6 Pet owners are happier than non-pet owners.

Everyone likes a happy person, and numerous studies have found that pet owners are happier than non-pet owners. As a landlord, it’s far easier to do business with a happy, laid back, friendly person than an angry, anxious, and nervous grump. Happy people are happy tenants, and happy tenants make for a happy landlord.

Many landlords are skeptical about allowing pets in a rental property, and the skepticism is totally understandable. Pets can damage your rental property. Sometimes they smell, and even the friendliest pup barks on occasion. Nevertheless, from a business standpoint, becoming a pet-friendly rental might be a wise move for many landlords. Think it over.

Author’s Bio:
Darlene Mase lives in Newnan, Georgia with her husband and daughter. She is a stay-at-home mom and works as a freelance writer for Zumper.com and other popular sites. During her free time, Darlene enjoys traveling, hiking, camping, cycling, gardening, caving, kayaking, or anything else outdoors.

The post 6 Reasons You Should Allow Pets in Your Rental Property appeared first on Landlord Guidance.

Nowadays, renters go beyond the aesthetics when talking about the words “attractive” and “rental property”. First, the property should be pleasant-looking. There is also a consideration of the location being convenient to work and/or school. Renters also look at the rates.

But the wisest decision of them all is affected by the security the property provides. To be honest, you can never blame tenants as over the past decades, incidents of burglary were on the rise.

With you owning rental properties that are ready to be occupied, how do you make it as attractive to renters? Consider installing home security systems. And what home security devices should you look into? Read on below:

Smart Locks

A secured door is your primary defense against burglars. But incorporate it with a smart lock, you have an advanced protection for your home.

A smart lock works just like your traditional lock and key. The difference, however, is that smart locks are more convenient.

Lost or forgotten keys will no longer pose as a problem. Duplication of keys is no longer a need as there is no physical key in the first place.

Smart locks make it possible for occupants to access the property through smartphones or any gadget that is compatible. Access can be granted remotely by the landlord or by sending renters their access codes.

Whether occupancy is for short-term or not, landlords no longer have to worry about regularly changing locks. Not only is a smart lock secure, but it is also cost-efficient.

Smart Lighting

A vacant property is always a good target not only for interested tenants but also for burglars.

As opposed to the usual belief, crimes do not happen just because those who commit them were just in the mood for it. A large percentage of crimes are meticulously planned before they are executed. This is the same with burglaries where criminals study the property prior to the break-in.

As a property owner, the worry peaks at times when nobody’s home. Installing smart lighting makes landlords worry less. This is because smart lighting can be programmed into making criminals believe somebody is home even when nobody is.

Occupants can orchestrate when lights can be turned off and when it can be turned on. In most cases,
lighting can also be controlled remotely using a smartphone or any gadget that’s connected to the system.
The development of smart lighting is far from over. In fact, recent models have the capacity to connect with the doorbell and have the lights turned on as soon as somebody rings it, giving an impression of a homeowner having been awakened.

Security Cameras

This is probably the most common of all security devices. Having a security camera installed inside and outside the rented area makes you capable of monitoring the ins and outs of the property. Technology has also made it possible for you to do the monitoring remotely through the use of a computer or a smartphone.

You may also be wondering if it is within your legal rights as a landlord to install security cameras at the property. The answer is yes, it is legal. It is just a matter of which part of the house the cameras are installed.

You should understand that tenants also require privacy and so cameras should never be placed inside the bedroom, toilet/bath, and similar places.

It would also be helpful if you make your tenants aware of the devices inside the property. For sure, they would understand your reasons knowing that these were installed for their own sake.

Motion Sensors

Ever heard of a passive infrared motion sensor? This is the kind of sensor that is becoming popular these days. To simplify how this works, a sensor, when programmed, will be able to detect movement within the property when there should not be. This would be extremely useful at times when nobody’s home.

A common disadvantage of motion sensors, however, is the possibility of false alarms especially for households with pets. Make sure that when choosing the best motion sensor in the market, go for the one that’s pet-proof.

Smoke and CO2 Detectors

Aside from burglars, there are still a number of threats a tenant must face. Fires and carbon monoxide poisoning, for example.

According to the CDC, there are about 400 deaths related to carbon monoxide poisoning. NFPA also reported that in the previous year alone, there were about 3,400 fatalities related to fire cases.

While most would be content with the traditional fire alarms, these are only useful when one is at home during the fire. Home security companies, however, have taken measures to a whole new level.

The latest models of smoke and CO2 alarms notify occupants remotely in cases of dense smoke inside the house, which can only be caused by a fire; or in instances when there is a high level of CO2.

Alfred Security App

While this may be an app and not exactly a device, this can be extremely useful in cases when you want to save on costs. You can make use of an old phone, something you no longer use but is still working. All you need is to download and install the Alfred Security App (for free).

Having it on your phone will make it possible for it to serve as your security camera at home. It can now be connected to the smartphone you are currently using for remote monitoring purposes.

There may be connectivity and coverage issues but the app can be useful for a small property and for those who intend to save on monthly payments.

C-Slide Webcam Cover

For just about $6, this can be a very good addition to your property’s security devices. Some of us may not put so much importance to it but it is easier than believed for another person to access a computer’s camera, take photos and videos of those invading your tenant’s privacy.

Your renters would be glad to have this easily slide into their computer’s camera to cover the lens when not in use; thereby protecting their privacy and giving them peace of mind.

Video Intercom

We’re all pretty sure everybody’s been told not to open the door to strangers. Doing so is never a good idea. In fact, even raising the curtain or peeking through the window just to find out who rang the doorbell is a bad decision. We all know a lot of characters in movies fell victim to villains just by doing this.

On another note, let’s all admit it. We could also sometimes be lazy enough to get out of bed just to check who is outside.

With the video intercom, these concerns are all addressed. The system enables your renters to see who rang the bell. Some systems even allow a two-way conversation with whoever is outside.

Flood Alarm

Is your property in an area likely to be flooded? You can do away with worries about damages caused by flood and water leaks by having this flood alarm device. It can easily be installed in places that are prone to leaks or floods.

How it works is that once water hits the device, an alarm is set off. You would be able to monitor your property, with or without any occupant. And once the alarm is triggered and you are notified, you would be able to do something about it before it causes more damage.

Security Alarms

No matter how sophisticated your security system is, nothing could be better than having an alarm that makes the loudest noise possible. Imagine a burglar just about planning to loot your property. As soon as the invader opens the door, an alarm is sounded; loud enough for everyone to wake up.

When having an alarm, however, make sure to regularly check and deactivate when not needed.

In summary, you as a landlord only want the best for your tenants and for your property. You may do away with some of these devices but you can also opt for maximum security and get everything that you need.

At the end of the day, you are responsible, as much as the tenants are, for the safety of their lives and the preservation of your property.

The post 10 Best Security Devices Landlords Must Invest For Their Properties’ Protection appeared first on Landlord Guidance.

Minimizing Your Risks From the Start

It is always best to take the least amount of risk whenever possible, especially when money is involved. Unless you are limiting your potential renting pool to friends and family, you will be dealing with total strangers. That means that you are trusting people you know very little about with your investment.

• Never rent to anyone (even family members) without looking at background information, perusing financial and employment history, and getting references. This is called “tenant screening” and experienced landlords will tell you to do it well.
• Check the references, including checking to see if these people are who they claim to be. A tenant can give a name to his new landlord claiming that the person was a former landlord. The person in question could be a friend of the tenant, not his former landlord, with no real former landlords vouching for the tenant.
• Constant job changes and frequent moves can be a red flag that someone is a problem tenant and may disappear without warning.
• Spell out everything in the rental agreement, making sure that everything is as clear as possible. In the initial interview, bring up anything that you feel could be a problem.
• Do not rent to anyone who seems to be rude or dismissive of you or who otherwise makes you feel uncomfortable.
• Make sure that the tenants know what to do if there is a problem, including a flood or fire. Ensure that there are smoke detectors and fire extinguishers in the unit and that the tenants know how to use them. Give them as many contact numbers for you as you can, and instruct them to call you in the event of a problem. Make sure that they know to call 911 in the event of an emergency.

Ignoring Your “No Pets” Policy

Despite your best efforts and a clearly written “no pets” policy in the rental contract, you suspect that your current tenants might be hiding something. Hopefully you’ve taken steps to minimize your risks during this situation and can proceed with your clearly laid out plan.

• Ask them directly in the interview if they have pets. If they do not say no right away or are acting evasive, it can be a red flag that they plan to sneak one in eventually.
• Be careful about “bending” your own rules. Some people will take advantage of this.
• Make sure your “no pets” policy is clearly noted in your lease agreement and that any violation of the policy will be considered a breach of contract. Clearly lay out how proceedings would go if a pet were found on the property whether that is issuing a warning, collecting a fine, or beginning eviction proceedings.
• Before they sign the lease, let the tenant know that you plan on performing quarterly maintenance checks on the property to make sure things like smoke alarms are working properly and HVAC filters are replaced. If they know you will be in their space this frequently, they will be less likely to attempt to hide a pet.
• If an unauthorized pet is brought to your attention, be direct and handle the situation professionally. Refer to your lease agreement and proceed with the consequences that you laid out.

Tenants Who Destroy Property

An agitated tenant who is angry about being evicted can turn that frustration toward your property. They can get destructive by doing things like tearing up carpet, punching holes in walls, or damaging appliances.

• If you suspect a tenant is destroying property, the first thing to do is to remain calm. You do not want to jump to conclusions and address the tenant when you are worked up if there is actually nothing to be upset about.
• Give the tenant 24-hour notice that you will be inspecting the property.
• Carefully document any damage that you see.
• If there is damage noted, then reference your lease agreement for how to proceed or if the tenant is particularly problematic, then consult a lawyer.

Tenants With Financial Problems

While you will see financial and employment records for the tenant, it might not rule out potential problems down the road. A tenant going through a tough time might be forgoing other obligations to keep paying his rent on time such as avoiding utility payments. While that sounds beneficial to you, that can lead to additional problems, including frozen pipes and flooded basements.

• If utilities are not included in the rent, make sure that the tenants are paying their bills on time.
• It is easier to offer a break in the winter months so that tenants can pay their heating bills than to deal with a flooded basement after the pipes have frozen and burst. If you come to the property and find tenants walking around with coats and gloves on inside, it is time to get an idea of what is going on.
• Be aware that not paying utility bills can also mean increased use of space heaters, candles, and other possible fire hazards.
• Make sure to clearly spell out the consequences for not paying utilities that keep the property functioning properly in the lease. That way you have precedent to reference if the tenant cannot keep up with their payments and you need to begin the eviction process.

Tenants With Legal Problems

Background checks might not reveal everything. Your new tenant with the sterling background may just hook up with the local drug dealer and begin engaging in some illegal activity on your property.

• Simple legal problems like illegal parking and noise ordinance violations can usually be dealt with by phone.
• Suspected illegal activity like running drugs can be more problematic. Some drugs carry additional risks, including environmental hazards and an increased risk of explosion and fire.
• If this tenant is hostile when asked to leave, you may need to involve lawyers and legal eviction proceedings. Collect all evidence that you can to support your case against the tenant.
• Be sure to state the consequences of such activities in the lease agreement that gets signed prior to the tenant moving in.

The lease agreement is such an important part of protecting yourself and your property as a landlord. In this document that the tenant signs, clearly note what activities you will not tolerate from your tenants and how penalties for those violations will be administered. This will be your best friend should any tenant situation turn sour.

The post Nightmare Tenant Scenarios and How to Handle Them appeared first on Landlord Guidance.

By the time you must evict your tenant, your relationship with that tenant is already at an all-time low. Remember that people in a bad situation may act irrationally, angrily, and sometimes violently. That is why it is imperative to take precautions during the eviction process to keep yourself safe from unnecessary harm and confrontation. Below are some helpful tips.

Tip #1. Avoid Non-essential Communication

Your tenant will frequently blame you, the landlord, for an eviction, so you want to avoid non-essential communication while the eviction is taking place.

You are not required to respond to every pointless contact from a tenant you are evicting. If they are contacting you to resolve the eviction issue, or for a real safety issue (not one they made up to mitigate the eviction), then you must respond professionally. Otherwise, do not get drawn into pointless conversations.

You also might want to tell your tenant, “From this point forward, let’s only communicate in writing.” This will slow down the pointless chatter and keep the communication to the most important topic.

Tip #2. Don’t Confront the Tenant In Person

Additionally, emotions run high throughout the eviction process, so avoid confronting the tenant in person once the eviction process begins. It can be very awkward and dangerous standing in front of the person you are evicting.

One time I was in a dispute over late rent with a middle-aged female tenant. She came to my office to pay the rent in person. In my office, she pulled up her shirt halfway, grabbed a big chunk of flesh on her belly, and told me she has cancer “right here.” I guess she wanted some sympathy, but it was weird and gross.

Again, the best practice is to communicate in writing. That way you document everything that is said. Communicating in writing will also force both parties to be more civil, which is very important when you may be leading up to a court case where a judge will see all your communication.

Tip #3. Do Not be Emotional

Also, try not to be emotional at all. An eviction is just business. Following the advice above will help you avoid emotions. But also make sure your written communication is not emotional.

I don’t do it anymore, but I remember getting into emotional shouting matches with tenants on the phone. Now I realize how pointless that was.

I called one tenant because the neighbors told me the police were at her house constantly. She began yelling at me that she had a right to call the police as much as she wanted. It didn’t occur to me that she was the one calling the police. Apparently she was calling them because she was in a physically abusive relationship. But regardless, things got heated, and I argued back that it’s my house, yada yada yada, probably creating some liability for myself, and essentially accomplishing nothing.

Tip #4. Speak Respectfully to your Tenant

Remember to speak to your tenants as you wish to be spoken to, with respect. Even if they are yelling and cursing, you need to be the bigger person and set the tone. Your tenants are real people with real lives and real problems, and they deserve to be treated with dignity. And treating them with dignity will reduce the chance of them acting violently.

When people are facing money problems, they will make the dumbest sounding arguments to you. You have got to resist the temptation to call them out on it. Don’t call the tenant an idiot for thinking it’s okay to work on a motorcycle in the living room. And obviously DO NOT EVER delve into racist, sexist, or bigoted remarks. It’s wrong, and you will get sued.

Just stay respectful and polite, and let the eviction notice do the talking. This will help keep you safe.

Tip #5. Do NOT be Present When Your Tenant Moves Out

As you may know, the last step in the eviction process is having the tenant removed from the premises (unless they leave voluntarily). A court appointed Bailiff or Sheriff will complete this step for you. A few states require you to be present, but it is best if you are not present.

Just imagine you standing there watching and commenting while the just-evicted tenants are moving all their stuff out in disgrace. You are definitely the “bad guy” in this situation, and no matter how “right” you are, you look like a jerk. A jerk who deserves to have something thrown at them. Stay safe and do not be there if at all possible.

Recap of Eviction Safety Tips:

1. Avoid Non-Essential Communication
2. Avoid Confronting the Tenant in Person
3. Do not be Emotional
4. Speak Respectfully to your Tenant
5. Do not be present while the Tenant is moving out

I wish you good luck as you go through the eviction process. Make sure you stay safe, and play by the rules. That way you will be successful, while still preserving your tenant’s dignity and your own!

The post 5 Tips to Stay Safe During the Eviction Process appeared first on Landlord Guidance.

A pay or quit notice is a form used to demand the rent payment that is overdue and payable. Your tenant has broken their signed lease or rental agreement that set the time at which rent is due. The pay or quit notice legally informs the tenant that you are about to begin eviction proceedings against him if the default is not corrected within a set number of days.

Usually receiving a pay or quit notice, also be called a “Notice to Pay Rent or Quit,” is enough to convince a late tenant into paying the rent if he is able to or quit the premises. Your tenant may call you immediately and promise to make payment arrangements to bring their rent current. Although it is great getting such a call, make sure they sign a Promise to Pay form agreeing to any terms you allow until the rent is paid up to date. Make sure they understand that if they default on the Promise to Pay, eviction will start immediately.

When to Use a Pay or Quit Notice

The best way to handle a delinquent tenant is to contact the tenant and to get them to pay their back rent. However, a non-compliant tenant often does not answer their door or phone, nor will they respond to text or phone messages. In this case, the pay or quit notice provides the landlord recourse to obtain the amount in arrears.

In order to help you understand when to use a pay or quit notice, we present two scenarios for your consideration.

Scenario #1 – Notice prompts tenant get current

A young couple was excited to move into their first home – a modest apartment in a family-friendly complex. Within a year, they had a child. A year later, the husband lost his job, one for which he had trained specifically. The area where they lived had few jobs in his field. However, both of them had family locally and wanted to remain where they were. The husband took temp jobs and did everything he could to continue providing for his family, which now included two young children. When Christmas came, he did not want to skimp on presents and overspent. Then his wife became ill and was hospitalized for three days. With no health insurance, large medical bills became a source of worry. The couple did not want their credit to be ruined, so they concentrated on paying their credit card and medical bills. Additionally, they kept the utilities paid. However, there just wasn’t enough for rent. It was late one month, then the next it was even later.

The property owner knew the tenants had fallen on hard time. They were responsive when he contacted them, explained why they were late, and assured him things were getting better and they would be caught up soon. The property owner decided he would wait and give them some time to catch up, but after three months when they missed rent completely, he issued a pay or quit notice. The couple borrowed from family, sold out-grown children clothes, and scraped up the money to become current on their rent. Shortly after, the husband got a permanent job and got back on track with timely payment.

Scenario #2 – Notice prompts tenant to vacate

A landlord had a tenant in one of his rental properties who was not paying rent. When contacted, the tenant at first made excuses, then became angry and defensive, and finally stopped responding at all. The landlord delayed taking action, but after the tenant was four months in arrears, he issued a pay or quit notice. Unfortunately, the tenant decided to quit is residence and the landlord lost four months of rent. Additionally, the tenant left the property with severe damage and moved out of state to avoid further contact with the landlord.

Scenario #3 – Notice prevent future defaults

An experienced property owner required his managers always to contact renters late or delinquent on their rent. As a result, seldom did a tenant actually miss a month’s rent. When they did, they immediately received a visit or phone call to set up how the rent would be brought current. Additionally, if the tenant was non-cooperative or the manager felt that payment was not forthcoming, the tenant received a pay or quit notice. As time went on, the need to do so decreased as tenants knew timely payment was expected.

Most often, tenants will pay when they receive a pay or quit notice. However, if they don’t your notice becomes the first step in a court action. Therefore, it is important your notice is legally correct. Judges often scrutinize the notice carefully. Errors can mean the loss of an eviction lawsuit and the landlord may end up paying the tenant’s attorney and court fees. Since you never know the response of a tenant and what action may follow, always make sure all notices are prepared and served correctly.

Contents of a Pay-or-Quit Notice

Although you should contact your local housing authority to obtain details about required contents of the pay or quit notice, as well as the procedures required to deliver the notice, the following general guidelines will help you get started:

• Write the title for your pay or quit notice across the top of the letter. In some states, the number of days you are giving is part of the title. For example, you may need to title the document “Three-Day Notice to Pay Rent or Quit.”
• If not included in the title, the number of days for the notice must be specified. This can be three days (most common) or more, depending on your decision and your state’s laws.
• Include the names of each of the tenants.
• Specify the address of the rental property.
• State the amount of rent the tenant owes you listed by due date and rent amount for each missed payment with the total amount owed at the end of the list.
• State clearly that if the tenant does not pay, he must move out of the rental property and forfeit his lease.
• Include a written demand that the tenant pay the full stated amount within a certain number of days as determined by your state’s laws.
• Include payment details: the mailing address if you are allowing payment by check, the address to which the tenant can deliver the money, or the need for a certified check or money order.
• Include a signature and date your pay-or-quit notice.

You cannot include other owed amounts, such as late charges, unpaid utilities, and reimbursement for damages. Additionally, you may not be able to include all the rent owed if some is older than one year ago.

Some Perceived Problems with Pay or Quit Notices

You may wish to avoid handing out pay or quit notices. However, the landlord who does so when necessary often finds a reputation of not putting up with late rent payments is desirable. If your tenants know you will take action when rent gets behind, they are much more likely to prioritize making their rent payment before paying other bills or spending their money foolishly.

Many landlords conclude that a pay or quit notice will lead to a court battle for eviction. However, the notice is a tool to get the tenant’s rent, not to evict them. Remember that your tenant probably wants to avoid the expense and inconvenience of a move. The fact is, the majority of tenants who receive a pay or quit notice do pay up within the number of days allowed.

How to Deliver the Pay or Quit Notice

Now that you understand the worst thing a landlord can do is not take immediate action, the question may arise, “How do I deliver the pay or quit notice?”

At the bottom of your Pay or Quit Notice, there is usually a space for Proof of Service information. Sign and date the notice and have it ready, leaving blank the method used. The reason for doing so is to allow you to use whatever method is most appropriate.

There are a number of methods for serving a notice to quit or pay rent.

Mail the Notice

Probably the simplest method, send the notice to your tenant by registered mail with a return receipt so that you have proof your tenant received the notice.

Personally Serve the Tenant

The landlord can deliver the notice or have the property manager, if there is one, do so. If the notice has led to tension with the tenant, this method may not be desirable.

Substitute Service and Mailing

Sometimes the tenant is not available for personal service. In this case, you may serve anyone of “suitable age” at the property. To be safe, make sure the person you serve is at least 18 years of age. After you have served the notice, follow up by mailing a copy to the tenant(s).

Post and Mail

If you cannot find the tenant or a substitute to serve the notice to, you may use “service by posting.” You affix the notice to the front door of the residence and mail a copy to the tenant’s residence.

Hire a Professional Server

If you choose to hire a server, find one with a record of timely serving notices and providing proofs of service.

Now that you know the methods of serving the pay or quit notice, which one should you use? The method you choose to use is dependent upon the situation and your personal preference. If your relationship with your tenant has become antagonistic, personally serving the notice may not be advisable. However, if you decide to serve the notice in person, the tenant is not available, but an adult “friend” of the tenant answers the door, substitute service and mailing will work. Property owners with multiple complexes or stand-alone rental units may find the services of a professional well worth the expense. Additionally, many property owners and managers prefer posting and mailing as they find it scares and embarrasses tenants into paying what is owed. Remember, to have your pay or quit notice signed and ready for you to specify the method of service used when you decide which method is best or actually deliver or post the notice.

The purpose of a pay or quit notice is to compel a tenant to pay back rent. The notice gives the tenant a certain number of days to either pay the rent he owes you or to move out. Once you have presented the notice, if your tenant does not pay you, you can begin the eviction process.

Remember, the worst decision you can make is to ignore late or unpaid rent. Timely communication about the problem and how it can be resolved is imperative and will frequently prevent the need for a pay or quit notice. If you do it correctly, a pay or quit notice is not that difficult.

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