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What do landlords look for in tenants? The number one quality most landlords look for is the tenant’s ability to pay rent on time and in full. Yet you also want someone who will take excellent care of your property and also be a good neighbor. While making a list of your preferred qualities in a tenant is one thing, finding quality tenants can be a challenging process. That often means filtering through a sea of potentially bad tenants just to find an exceptional one. To find renters who are reliable and trustworthy, it is smart to go through a series of steps - from advertising your property to tenant screening. The following information will give you an idea of what steps you should take to ensure your property is rented to an excellent tenant. Improve Your Rental Property To attract the perfect tenant, you want a property that will grab their attention. It’s nearly impossible to land ideal tenants, or even bad ones, if your property is in poor condition. That could mean replacing old carpet or adding new flooring, repairing or replacing run-down appliances, lawn maintenance or simply applying a fresh coat of paint throughout. Also, it’s always best to give the property a thorough cleaning, especially before taking photos for a listing or a property showing. Quality Photos Once you have your property in quality condition you’ll want to be sure and advertise it by showing off the improvements and best features of the home. Unique, attractive pictures will add to the legitimacy of the property which will be pivotal to finding quality tenants. It will show that the landlord or property manager has high standards when it comes to the effort they put forth in their listings. Be sure there is good lighting and that the photos of the property are clear. Include any special features like a fenced yard, storage, decorative fireplace or any other unique qualities that will grab someone’s attention. Advertise With a Detailed Listing It’s important to get your listing on as many sites as possible. Some of these include real estate websites, which may charge a small fee for a listing, and social media sites. But simply posting the property with a price and photos is not enough to attract the best tenants. You will want to be sure to include any or all of the following in the description, if applicable: • Number of bedrooms and bathrooms • Square footage • Balcony or patio • Fenced in yard • Outdoor storage • Hardwood, vinyl or carpeting • Pet restrictions, if any • Amenities included • Central heat and air • Washer/Dryer connections or on-site facilities Rental Applications The best way to collect as much information as possible for a prospective tenant is through a rental application form. When using this form, be sure and ask for the following details: • Names of applicants • Phone numbers and email • Children or other occupants information (if any) • Prior addresses • Landlord’s contact information • Sources of income and amount • Employer’s contact information • Driver’s license numbers • Social Security Numbers • Personal References and Emergency Contact Some states will allow you to charge a non-refundable application fee. This will help with paying for services needed to do credit or background checks, as well as ensure the applicant is serious about applying. *Keep in mind you must comply with the Fair Housing Act and any fair housing laws in your state when reviewing sensitive information provided by the applicant.* Tenant Screening Once you have received all of the applicant’s information you will need to confirm its accuracy. This is a critical step in finding an exemplary tenant. Screening a tenant usually involves checking their employment history, credit score, rental history, criminal history and references. They will need to provide proof of income or you can verify it yourself through their employer’s contact information. Ideally, you will want to find a tenant whose monthly income is at least three times the rent. You can also verify rental history through the landlord’s contact information. It may take some research, but you want to be sure you are getting an accurate rental history from a legitimate company or owner. Once you contact their previous landlord(s) you can determine if they have good or bad rental history by checking the following: • Consistency in paying rent on time (or any late payments) • The condition the property was left in • Any lease violations committed • Any evictions • Security deposit refunded You should also ask for any additional information that the landlord would like to provide to help you determine whether or not they would be a worthwhile tenant. If the tenant always paid on time, never caused any disturbances, left the property in great condition and received their security deposit back in full then that would be an excellent rental history and an applicant worth considering. Checking their credit score and payment history on their credit report is also a great indication about whether they are financially responsible and will pay rent on time. Finally, be patient. The right applicant may not be your 1st, 2nd, or 3rd application, and it can feel like a waste of time to wait for an applicant to come in, but it is worth it! Settling for a less-than-ideal tenant can lead to problems like evictions, late payments and property damages. These will all cost you more than waiting for the right tenant. Ensure Payment Before Handing Over Keys When renting a property it is standard procedure to ask for first month’s rent and a security deposit before allowing the tenant to move in. Before handing over the keys, though, be sure that the payment will go through either by asking for payment through money orders or cashier’s checks or waiting for any personal checks to clear. If the tenant is required to pay utilities, be sure to contact the utility companies for confirmation that the tenant has turned them on in their name before the tenant moves in. In Conclusion… Flournoy & Calhoun Realtors know that finding good tenants can be a challenge if you are new to the process. By following the tips provided, you will be able to narrow down your applicants to the best possible tenant for your property. This includes making improvements on your property if necessary, advertising in great detail to attract potential tenants, having them fill out an application and screening the applicants carefully. Flournoy & Calhoun Realtors are experts in these areas and being a family oriented company, we always consult with each other to determine if an applicant meets the standards of an outstanding tenant and in doing so, we are confident in our results. Remember to trust your instincts and never hesitate to ask for a second opinion! -Written by Ashton Black

Hiring a property management company can add substantial value to your rental property investment. Having a company to manage your properties for you will help find the right tenants, keep your property in better condition long-term, handle legal issues and give you more free time and less stress. Here are a few reasons why hiring a property manager is worth the investment: High-quality and Long-term Tenants Tenant screening can be a complex process. A good property management company has a reliable and verified screening process that will help select tenants who will: • Rent long-term • Pay their rent on time • Minimize the wear and tear of the property • Cause fewer issues across the board By utilizing the services of a company with years of experience, you will have access to the warning signs on an application that may indicate the applicant would not be the right tenant. You will also have protection against lawsuits and scams caused by doing the screening process inconsistently. All of this will help you save more money on your investment. Less Legal Issues Experienced landlords know that one difficult tenant can cause extreme financial and legal issues. A skilled property manager knows important changes to laws between landlord and tenant and can guarantee you’re not exposed to potential lawsuits involving any of the following: • Tenant Screening • Evictions • Safety and Conditions of the Property • Inspections • Lease Addendum • Terminating Leases • Managing Security Deposits • Rent Collection Avoiding just one lawsuit can help you save a great deal of money and time spent in court proceedings. Shorter Vacancy Periods A property manager can assist you with performing tasks that will have a large impact on vacancy gaps: • Improving and getting the property ready to be rented- They will be able to suggest valuable ideas to enhance your property and increase your rental revenues. • Determining the optimal rental rate- If you set the rent too high it may take too long to find tenants, too low and you may be losing money each month. It’s crucial to have a local knowledge of the real estate market, data on similar units and access to professional rental rate tools. • Effectively marketing your property- Those who have been in the industry for a long time will have a lot of ads and an understanding of what is important to include in a listing to get a large volume of applicants in a short time frame. Because they manage many properties they can probably get better deals on advertisement both online and offline. They also know the ins and outs of sales and have a skill in closing deals successfully. More Organized Rent Collection A timely monthly rent collection is vital to maintaining consistent cash-flow. You should make it clear to tenants that it is non-negotiable. Sometimes you have to be careful of tenants who may try and take advantage of you. By hiring a professional property manager, the landlord puts a barrier between themselves and the tenants, allowing them to be the ones who have to listen to tenant’s reasons rent is late, collect rent, and handle evictions if necessary. Property managers can deal with it easily because the tenants know that it is just part of their job and they have no choice. Eviction process laws exist and are different in each city or state. The laws that regulate the eviction process are strict and doing it the wrong way can be a big mistake. The right company knows the laws and has a clear process of how to get the best possible outcome out of the circumstances. Not having to handle a potential eviction yourself is a very compelling reason to hire a specialist. Lower Repair and Maintenance Costs Having efficient maintenance keeps your tenants happy, not to mention that by doing so you also preserve the value of your investment. If you can take advantage of hiring a highly qualified property manager, you will also have access to professional maintenance and a network of licensed, insured and bonded contractors. These vendors are trustworthy and have been vetted for quality work and fair pricing. This can save you a substantial amount of money that you would end up spending hiring an independent contractor yourself. Companies get discounts due to the volume of work they order and also know how to supervise that work. Increase Your Property’s Value A property management company will be able to provide preventative maintenance as a way to detect issues early on before they become an expensive hassle. Inspections of the property and maintenance checks can help the company give you advice and suggestions for possible upgrades and modifications. They will also be able to explain how these changes will impact your property’s rental value, maintenance cost and insurance prices. Personal Benefits for Owners A strong deciding factor for some property owners when making the decision to hire a property management company are the several personal benefits: • Less Stress- You won’t have to deal with emergencies in the middle of the night, tenants who damage the property, chasing down rent payments, scams and extensive paperwork. • More Freedom- You don’t need to be near your rental property at all times, so you have the option to spend time on other things like hobbies, vacations, and investing. You don’t even need to live in the same state as your rental property. Simply collect your check every month without having to step foot on the property. • More Free Time- Without having to worry about managing every detail of your investment property, you would be able to focus on other business opportunities and generate more revenue for yourself. And, of course, you will have more time to spend with family and friends. To Put It Simply… The benefits to hiring a property management company are extensive. There will be experienced professionals who choose great tenants for you, deal with any maintenance or legal issues that arise, generate more advertisement for the property, and give you the free time to pursue any other interests you may have. -Written by Ashton Black

IS RENTERS INSURANCE WORTH IT? The short answer is YES! Absolutely. Not only does renters insurance cover a wide variety of unforeseen circumstances, but it is also more affordable than most people realize. Some renters may think it is an unnecessary expense. Some mistakenly think the landlord will pay for their losses if anything happens to the property and their belongings. It is a difficult and sometimes very costly, inconvenient mistake to make. Hopefully, with the following information on renters insurance, more renters will have an understanding of the benefits and peace of mind that comes with having coverage even if you don’t think you will need it. What does renters insurance cover? *HOTEL COSTS AFTER A DISASTER If the home you are renting has a fire or a pipe burst and major repairs are needed, don’t make the mistake of assuming it is the landlord’s responsibility to pay for your hotel stay. Your renters insurance includes “additional living expenses” if your place becomes uninhabitable for a period of time while repairs are being made. *PERSONAL PROPERTY Personal possessions damaged due to fire, smoke, theft, vandalism, water and other disasters can be included in your policy and will be reimbursed or replaced. Depending on your coverage you may need to pay a deductible, but the cost would be significantly less than if you had to pay to replace the items yourself or pay for any damages out of pocket. *LIABILITY This part of your policy would cover any lawsuit damages, legal expenses or medical expenses you may incur. Some examples include guests getting injured in your home, your pet biting a stranger, or a candle being knocked over causing a fire that could affect an entire apartment building. These issues could lead to multiple lawsuits that your insurance would help cover. How much should you expect to pay for renters insurance? Depending on the area you live the rates will vary, but the average cost of renters insurance is about $14 a month. Most auto insurance companies have the option to bundle renters insurance with your auto policy so be sure to check with them to save even more. For less than a dollar a day you could be potentially saving thousands on stolen items, damage to the home, hotel stay or lawsuits and medical expenses. THE BOTTOM LINE… It is in your own best interest to obtain adequate insurance. Unexpected events happen all the time and it is always best to be prepared. Check with your auto insurance and see what your options are for bundling renters insurance. Call around for the best prices and coverage for you. Policies will vary from place to place and from case to case, but at the end of the day it is up to you to protect yourself with renters insurance. By Ashton Black