On paper, rental leasing is straightforward: someone takes an interest in your property, asks to rent it, you say yes and they sign the lease. But the reality isn't so straightforward. There is a few hurdles which can leave most people with a leasing process that's far from perfect.
Read on to discover rental leasing best practices that can streamline your property management and rental agreements.
Use a Comprehensive Screening Process
Smooth leases happen with reliable tenants. So, strengthen any existing screening process to make it more comprehensive. It should include:
- A credit score check
- Income proof, such as payslips
- A criminal background check
- Previous rental history
This will prevent you from leasing your property to a bad tenant. Having reliable tenants in your property means you are less likely to run into leasing problems like eviction notices.
Draft a Detailed Agreement
Don't cut corners when drafting a lease.
Remember that it exists to protect you and your investment, so ensure it's comprehensive and easy to read. Cover rules that matter for your property, like no-pet policies or reporting maintenance issues. If something isn't clear after the first read-through, chances are your tenant will miss it.
Maintain Excellent Communication With Tenants
Keeping communications open with your tenants will help you build a stronger relationship and prevent lease issues from escalating. Always ensure your tenants have someone they can contact 24/7 and are open to discussing any issues or questions about the lease.
Keeping excellent tenants happy can also increase your chance of a lease renewal.
Use Automated Processes
You don't want to spend hours each month on admin jobs like rent collection, especially when you're a busy real estate investor. So, look to automate as much as you can. An online payment portal is a simple and easy way to collect rent without having to do any chasing or reminders from your side.
Schedule Property Inspections
Schedule regular visits in the calendar to give your tenants plenty of notice before visiting the property for an inspection. Use this time to check key systems like the electric and air conditioning to ensure everything is in good working order. Regular checks can reduce the chance of a breakdown.
Familiarise Yourself With the Law
Landlords can accidentally find themselves with lease issues because they aren't familiar with laws like tenant rights.
You must take steps to familiarise yourself with laws and check that your lease is legally sound. If you aren't sure about the legalities, hire a real estate attorney to review and update your lease contract on your behalf.
Rental Leasing Best Practices
Use these rental leasing best practices on your next property. They'll help you create a more streamlined process and will save you from the risk of things going wrong.
You should also consider getting a helping hand from the experts. Metro Residential LLC has almost 30 years of experience in real estate and tenant management, meaning we are the go-to team for anyone in Fort Lauderdale who needs an expert, professional approach. Find out more about our services here.
