Attracting and Retaining

Quality Tenants

User
Manual
5494113
FREE download of electronic version of user manual and forms for this
product plus useful home and business tips when you register your purchase
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Table of Contents
Welcome .........................................................................................................3
Deciding to Be a Landlord......................................................................................4
Making Your Property Attractive to Prospective Tenants ...................................................4
Setting the Rent and Security Deposit ........................................................................9
Advertising for Your Tenants ................................................................................. 12
Dealing with Inquiries from Prospective Tenants .......................................................... 17
Showing Your Property ....................................................................................... 19
Screening Your Prospective Tenants ......................................................................... 20
Accepting and Rejecting Tenants ............................................................................ 23
The Rental Agreement or Lease ............................................................................. 25
The Landlord-Tenant Relationship .......................................................................... 27
Further Information ........................................................................................... 32
The Forms Included in This Kit ............................................................................... 33

This product is not intended

to provide legal or nancial advice or substitute
for the advice of an attorney or advisor.

2005 Socrates Media, LLC

PK209-M Rev. 02/05

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Deciding to Be a Landlord
What Do You Have to Gain?
Your propertyeither part of your own home or a separate propertycan be a useful source of income.
A successful rental provides:

Reliable incomeRenting out a condo, apartment or house that you have inherited or bought can provide you
with a predictable and ongoing monthly income.

A practical solutionYou have the ability to make income from your property at times when selling is not
nancially viable, or practically possibly (for instance, if you are renting out part of your own home).

Long-term investmentWith responsible tenants, and good landlord management on your part, your property
will remain in good repair. This means that when you choose to stop renting and sell, your investment will not
only have brought you income, but will likely have increased in value (dependent on the current property market).

Tax advantagesAs a landlord you are entitled to tax deductions on mortgage interest and taxes that apply to
the property. You may also be eligible for other tax advantages.

Becoming a Landlord
Becoming a landlord can seem like a rather nerve-racking prospect. Many people are put off by renting a property they own
simply because they are worried about letting strangers into their property. They are worried that tenants will damage the
property or make noise. Also, there is the issue of nonpayers, evictions and all the legal hassle involved. Realistically, the worstcase scenarios people imagine are relatively uncommon, and you can do a great deal to minimize the likelihood of having
problem tenants by knowing just how to attract and select quality tenants.
Consider this sequence:

With the right system in place, you can be condent that the tenants you have chosen are suitable, responsible
people who will treat your property with respect and pay their rent on time.

If you conduct a professional landlord-tenant relationship, you can deal with any problematic situations that
arise in a professional manner, and will have ensured that they are very unlikely to happen in the rst place.

If you are known to be a responsible and considerate landlord, your tenants are likely to return the favor by
acting responsibly themselves.

Tenants rate customer service highly, so a good landlord-tenant relationship is important to retaining tenants
who enjoy making your property their home.

Long-term, reliable tenants means much less work for you.

With the right approach and the right tenants, your work as a landlord will run smoothly, which is why attracting and retaining
quality tenants must be central to your work as landlord.

Making Your Property Attractive to Prospective Tenants

It is important to take care in selecting the right tenant for your property, but do not forget that the prospective tenant is also
making a choice. You need to make sure that your property is attractive to potential renters. And that is not allremember,
tenants will not necessarily come to you; you may need to go out and nd them. Preparing your property for rental and
advertising its availability are equally important tasks.

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You need to put signicant energy into:

making sure your property not only complies with legal requirements, but is also of a standard that will attract
quality tenants;

targeted marketing; and

knowing how to select a suitable tenant from those who approach you.

You might think that simply setting a fair rent may be all you need to do to get a suitable tenant. Believe it or not, a fair rent
is not always a priority for prospective tenants. A realistic tenantand most often a sensible tenant who is likely to be reliable
and responsiblewill have other features on his or her shopping list when it comes to choosing the right property. You can do
a great deal to sell the property and what it has to offer. However, keep in mind that although you are simply leasing a property,
your prospective tenant is choosing a home.

Prepare Your Property for Rental

Before you begin to advertise for tenants, you want to make sure that your property is ready to be leased. There are several steps
you need to consider:

maintenance and repairs

interior decoration

improvements

cleaning

Maintenance and Repairs

Ensure that your property is in working order. If you have not used the property yourself recently, or if it has been
unoccupied for a while, it is particularly important to check that no major repairs are needed. Even if the property
is well maintained, you must make sure it complies with landlord-tenant law. If you have not leased the property to
tenants before, there may be quite a bit of work you need to do to bring it up to legal requirements.
Depending on the type of property you own, youor someone reliable who you appointshould do a thorough
inspection of the property to check for any structural or other signicant problems. Remember that legal requirements
may be stricter than the standards you might be happy with in your own home.
Conduct a maintenance survey to look at the exterior and interior aspects of the property. You can customize the PreLease and Post-Lease Inspection forms included in this kit. If your own inspection reveals obvious major problems,
have a professional inspection as well. It is also worth having a professional inspection if the property has not been
inspected for several years. You should have all appliances serviced, as well as check heating, air conditioning and
ventilation systems. The HVAC Inspection form included will help you to check these systems, in conjunction with
professional servicing, on a regular basis.
Essential repairs should be undertaken immediately, before renting out the property. Major repairs should be
completed before advertising the property for lease. Remember, as landlord you are required to undertake repairs to
maintain the property. Once it is occupied, it will be harder for you to undertake these without giving your tenant
notice that you wish to access the property. Emergency repairs are not only inconvenient for everyone concerned, but
will generally cost you much more money.
Even so, as a good landlord, you should also undertake a visual inspection of the exterior of your property every 3-4
months, and occasional routine inspections of the interior. You will need to give your tenant 24 hours formal notice
when you need to enter his or her home.
Legal requirementsLegal requirements for the condition of rental properties vary from state to state. Your property
must comply with housing codes for rental properties in your area. Consult your state or local housing authority for

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more information. In addition, there is more information on a landlords legal responsibilities later on in this kit, in the
section on the landlord-tenant relationship.
Interior decoration
First impressions are important. It is easy not to notice faded or dirty paint work when you are used to it, or not
living there yourself. However, it is very easy to notice when you are a potential tenant, walking around the property
for the rst time. A clean, presentable property in good decorative order will do a lot to sell itself to your prospective
tenant.
So consider whether it is worth giving your property a fresh coat of paint. For a relatively modest nancial outlay,
you can make a big visual difference. Because you are decorating a property that someone else will call home, it is
sensible to choose a neutral color scheme, with plain colors, rather than patterns or bold designs. However much you
like red walls or oral dcor, your potential tenant may not, and could actually be put off by the thought of having to
stare at your choice in paint color each night.
Some landlords offer tenants the right to repaint the property themselves, at their own expense. This has advantages
and disadvantages. On the one hand, tenants can do a good job and choose something that appeals to them. They
are far more likely to stay if they are keen to put in the work and decorate to their taste. On the other hand, you may
not like the results, or the quality. In the worse case, you may face the expense of having to repaint again after a
tenant has left if the quality or color scheme is unappealing.
If you decide to allow a tenant to repaint, information should be included in the lease that describes precisely what
the terms are, in writing. Normally, you should state that the tenant has to restore the property to a neutral color
scheme upon leaving.
Remember: Your property does not necessarily need to be decorated to luxury standards (unless you are intending
to rent it as such.) Tenants do not necessarily expect everything to be new, especially if your rent reects this.
However, you are required to replace worn or damaged paint and oor coverings, since they can pose both health
and safety hazards.
Improvements
Have a look to see if there are still aspects of your property that you can improve to make it more attractive.

Are the rooms small? Features such as a white or pale dcor, or mirrors on strategic walls can make a room feel
bigger.

Are some areas a bit dark? Again, a white dcor can help. Make sure that lighting is in good condition, and
install spotlights or brighter lights where appropriate. Bear in mind that most people do not like industrial
uorescent lighting, however bright it is.

Has the kitchen seen better days? Ensure that the appliances are clean and working, and consider investing in
newer appliances if appropriate.

Clean up bathrooms, especially faucets and tiled areas. Routine maintenance and a bit of simple home
improvement can really help.

Check furnishingsIf the property is furnished, make sure that all furniture is clean and presentable. Your tenants
may not be expecting brand new furniture (and you may be setting your rent accordingly), but a few new items
can make a difference.

Get rid of musty smells and strange odorsThis is particularly important if there have been pets or smokers in
the property. Make sure the property is freshened up, that furnishing and carpets are cleaned and install air
fresheners. If there seem to be more serious problems, have the plumbing checked by a professional.

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Cleaning
If the property has been leased, the vacating tenant should have cleaned thoroughly as part of the terms of his lease.
However, you will still need to clean again, especially if the building has been unoccupied for a while.
A thorough cleaning involves not only oors and surfaces, but also those corners and areas that a day-to-day clean
might miss. Be diligentbefore you advertise for new tenants, clear out the cupboards, and make sure that drapes,
furnishings and carpets are dry-cleaned and in good shape. Ensure that the kitchen appliances are cleaned, as well
as bathrooms. If your property has common areasfor instance a house with several separately rented rooms or a
condominium that you ownensure that all common areas are clean and well maintained. Remember, these will be
the rst areas that your potential tenant sees. A tenant is very much like a home buyer; he may have seen several
properties in one day. A clean, fresh property will make a difference. Hiring a professional cleaner before a new
tenant moves in is often worth the expense, although you may be able to do a very good job yourself if you follow
the included Cleaning Checklist.
Tip: Once your property is good to go, do a nal thorough check using the Pre-Lease Inspection form. You should use this form
in conjunction with the Post-Lease Inspection form when a tenant moves out.

Finding Your Propertys Strengths

You need to consider ways in which you can sell your property to prospective tenants, so that it is your property they wish to
rent. This is particularly important when there are many similar properties available in your area. So put yourself in the tenants
position for a moment and look at your property with an objective eye.
In preparation for writing your advertising material and talking to inquirers, it is a good idea to do a walk-through of your own
property, imagining yourself looking at it through a potential tenants eyes. What is attractive about the property and what
features are worth drawing attention to? There may be many aspects you can stress as good points when showing tenants
around, or when you write your advertisements.

Closet spaceMost tenants are very interested in having sufcient storage space. Older properties, in particular,
often offer ample closet space, so you can sell this as a feature.

Room sizeAre the rooms above average size? Again, many older properties have the edge here and can offer
larger rooms, with space for king-size beds or larger furniture.

UtilitiesIs heat, water or trash removal included in rent? How about central air? This is a big selling feature,
especially in warm climates.

Special featuresDoes your property have any features that make it stand out? For instance, wood ooring,
in-unit laundry, high ceilings, large windows (especially if they have a great view!), extra large bathroom or a
roof terrace? You may take these for granted, but a potential tenant may choose your property because of them.

Privacy and/or securityEspecially if your property is an apartment, is it a corner unit or on an upper oor?
Do you provide access to a security system?

Yard or deckA well-maintained garden may be very attractive to a gardener or a young family for instance,
while others might prefer the easy-maintenance of a balcony or deck.

ParkingDoes your property come with a parking space or garage? If not, is parking on the street easy and
free? Or, is the tenant entitled to a residential parking permit?

Sell Your Location

Prospective tenants with a long-term rental in mind are just as interested to know about the local neighborhood as someone
who is buying a property. You should never lie about what your property or neighborhood is like, but you can draw attention
to what it has to offer. Even if your property is not in a particularly desirable area of town, make sure to point out what is good
about the location. Find out about the kind of facilities the neighborhood provides, so that you can have your answers ready. In
general, there are various aspects of a neighborhood that nearly all tenants will be interested to know more about:

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TransportationIs the property close to public transportation? You may normally drive, but some tenants may
rely on the bus or train to get to work and will be specically interested in how convenient the location is for
this. Those who drive will be interested to know the propertys proximity to major highways. Proximity to an
airport can put some people off because of the noise, but on the other hand, it can help you attract tenants
who work there, or who need to y frequently.

Shopping/convenienceMake a note of any nearby shopping centers or malls, supermarkets and convenience
stores. Most tenants, families in particular, will be interested in being close to useful stores. Point out which are
near bus routes and which have good parking.

SchoolsEnsure that you know about schools in the area, and take note of any with a particularly high
reputation or a specialist area (e.g., sports, music). For those who do not know the area already, you can point
out award-winning schools (if you do not know, call the local schools and ask if they have won any awards, or
have a high reputation in any particular area). Statistics on SAT scores or on how many students generally go on
to college are always useful.

Parks, entertainment, and recreationFamilies will be looking for good local parks or recreation facilities.
Others, singles in particular, might be more interested in being in the heart of downtown with easy access to
restaurants, entertainment and nightlife. Seniors may be looking for daytime opportunities for recreation and
socializing, geared to their age group.

The feel of your neighborhoodIf your neighborhood has a good reputation for a particular vibe, take note
of this. For instance, it could be an arty, multicultural area, or a particularly family-friendly neighborhood with
many community activities. Your potential tenants may be attracted by the likelihood that they will t in to this
kind of neighborhood, although you should never suggest that it is their kind of neighborhood as this could be
regarded as steering.

Steering is a term used to describe a landlords attempt to steer people from a certain economic or racial group into living in a
particular locality. This is illegal, because it is discriminatory. Avoid discrimination in describing the neighborhood to a prospective
tenant. For instance, you should never suggest that the area is attractive to people of a particular color or nationality.
Of course, you may have to face the fact that your property is not in the best part of town. In some cases, it may simply be
reected in the fact that your rent is set accordingly, and of course that is also an attractive prospect for tenants in itself.
You can use the included Property/Neighborhood Features Checklist to make a note of what the neighborhood offers. You can
pass this information on to prospective tenants who have particular inquiries about the locality. Once you have a clear idea of
what your property and the neighborhood it is in can offer, you will begin to build a picture of the kind of tenant who is likely to be
attracted to your property. This will help you when it comes to advertising for tenants.

Consider the Competition

If you are in an area with a great deal of similarly occupied rental accommodations, you know that there is a market for your
rental unit. On the other hand, this does mean that you have competition. If you think you may have difculty renting your
property easily, consider what you can do to make your property stand out from the crowd:

If your property is in a condominium, be aware of any special facilities offered, e.g., a gym or sauna, cable or
Internet access.

Consider adding facilities like high-speed Internet access or laundry appliances.

Remember not to over-equip your property. If your property is in a modest area of town where other rental properties are
typically low-rent and basic, you are simply not going to attract a highying professional willing to pay a higher rent. In this case,
there is no point in making your apartment into a luxury residence.

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What More Can You Add?

Without spending much more money, you can add more value to your property by being exible in your policies or by modifying
your property slightly.

Handicap-AccessibleIf your property is specically equipped to assist people with disabilities, you could
point this out. You can also modify the premises to be accessible to disabled peoplebut take informed advice
on what exactly is entailed. Consider also that people without disabilities may, however, be put off by modied
premises.
If your apartment or house is handicap-accessible you can advertise for free via organizations that cater to
disabled people. You can list your property on the National Accessible Apartment Clearinghouse (NAAC) database.
Call the NAAC at 800.421.1221 or register online at www.forrent.com/naac.

Pets welcomeIf you are willing to allow pets, you will attract tenants who may not be able to rent
elsewhere. Pet owners often have difculties nding a rental property that will accept pets. Property owners are
understandably concerned about possible damage caused by pets, and by potential noise problems from barking
dogs, especially in an apartment or a shared building. However, your property may be well suited to pets, or
you may not be overly concerned about the risks of damage. When renting the property you can ask for a pet
deposit in addition to the normal security deposit that protects you against the costs of possible damage. See
the later information on security deposits for further information. You should make sure that you have a clear
pet policy as part of the lease (a Pet Policy/Residential Lease AddendumPets is included).
Important: If your property is part of a managed condominium you do need to check that pets are in fact
allowed. Sometimes the bylaws or rules of the community stipulate no pets, or impose a weight limit (to
prevent big dogs) or kind or number (only cats or only one small pet). On the other hand, some pet-friendly
condominiums even offer shared pet facilities, such as dog-runs or a pet-sitting service. Make sure you have
information to give prospective tenants.

Smokers permissibleMany landlords prefer to have tenants who are nonsmokers. If you do not mind tenants
smoking in your property (and are willing to address the cleaning and safety concerns involved) you might want
to make a point of allowing smokers.

Setting the Rent and Security Deposit

You will need to know exactly what rent you intend to charge before you start to advertise your rental property, since this is the
rst thing that most people will want to know. Prospective tenants will also ask about your policy on security deposits and any
other fees. You need to have consistent answers, as you cannot treat one tenant differently from another.

Setting the Rent

The best way to get an idea of the rent you can realistically charge is to look at other available properties in the area that are
similar to yours to see how much they are charging. You can also consult rental agencies and view online listings of properties
for rent. A small amount of research can give you a clear idea of what is a realistic amount to charge.

Make sure to consider all expenses that the rent may or may not cover.

If some expenses or utilities are to be provided as part of the rent, take these expenses into account.

Do not forget mortgage payments that you may be making on the property.

Factor in additional ongoing expenses such as building insurance, maintenance and repair costs.

Remember that the property may not be occupied all year round. You need to adjust the rent to cover for
periods when you have no tenants.

Your primary goal in renting your property is to make money from the enterprise. You should aim to set a realistic rent that is not
so high that your property will remain empty most of the time, but is not too low either.

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You can use the included Monthly Rental Calculator to help you calculate a realistic rent.

Rent Control
Some cities and localities in the United States have rent control laws, which mean that the amount of rent you can charge is xed,
or the rate of rent increases are regulated. Not all rental properties in these cities are necessarily bound by these requirements. You
should check whether rent control applies to your unit by contacting your municipal government. You can nd contact details and
Web sites for local and municipal governments by visiting www.rstgov.gov, and navigating to the area for Local Government.

Note: If your property is subject to rent control and you charge too high a rent, your tenant can often take legal action to get a
refund, sometimes up to 3 years after they have left the property.

Raising the Rent

Keep in mind that the same local laws that may cover rent control in your locality may also govern how often, and by how much,
you can increase the rent. In general it is not a good idea, or good practice as a landlord, to charge an initial low rent and then
try to raise it signicantly once you have a tenant. This kind of action is dubious, and often illegaltenants have signicant
rights when it comes to landlord actions, so be careful to act professionally.
If you raise the rent, it is courteous and advisable to explain to your tenant why you are doing this. It may be that your rent is too
low in comparison with similar properties or perhaps you have made signicant improvements. You cannot raise the rate by a
large amount without good reason.
The Notice of Change in Rent form can be used to communicate a rent increase to a current tenant. Normally, month-to-month
rentals can be raised with 30-day notice. With a xed-term lease (for instance, a 1-year lease) a rent increase cannot usually be
applied until the lease is up for renewal.
This kit should not be regarded as a substitute for obtaining expert legal advice on landlord-tenant law, which varies from state
to state. You should consult the statutes particular to your state for further detailed information.

Security Deposits
What Is a Security Deposit?
A security deposit is a payment made at the beginning of a tenancy, in addition to the rst months rent (or week, if you are
asking for weekly payment). You hold this money until the tenant moves out. It is intended to protect you against the costs of
any damages or repairs caused by the tenant and not paid for before she leaves, and also against any unpaid rent at the end of
the tenancy. You should never allow the tenant to treat the security deposit as the nal months rent, since you may need it to
offset the cost of damages.

How Much to Ask

The amount you can charge as a security deposit may vary according to your states landlord-tenant statutes. Some states leave
the amount up to the landlord, but it is often equal to one months rent. Some states require that you put the money in an
interest-bearing account and return it with interest at the end of the tenancy, less any deductions. There are some additional
types of deposits you can ask for, in addition to the security deposit, and these also vary from state to state.

When to Collect the Security Deposit

You should normally collect the security deposit, as well as any other deposits, at the same time that you collect a tenants rst
rental payment. This is often at the point at which the lease or rental agreement is signed, which can easily be on the day a

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tenant moves into the property. You should ask for cash or certied check, and you must provide a Security Deposit Receipt,
included in this kit.

Making the Terms Clear and Assessing Damage

When your new tenant signs the lease you should make him or her aware of exactly what kind of damage and breakage the
security deposit would be used to cover. Normal wear and tear is not normally something that you can charge for, but you can
charge for accidental damage. For instance, if the tenant lives in the property for several years, oor coverings are bound to
deteriorate somewhat and you cannot charge the tenant for that. But you can charge for a broken window if it was caused by
tenant carelessness.

How to Return the Deposit

When a tenant leaves the property you are obliged to return the security deposit, less deductions, within a certain period of
time. This period varies from state to state, but is usually between 1430 days. You can deduct for repairs and damages that go
beyond normal wear and tear, and for any unpaid rent. However, most states require you to return the deposit with a written
itemized account of all deductions made.

Pet Deposit
If a tenant is moving in with a pet, you can charge a xed additional sum as a pet deposit. This amount can only be used to
cover any damage caused by the pet, and cannot be transferred to other damage. If your tenant acquires a petwith your
permissionafter moving into your property, you can charge a pet deposit at this point. As with the security deposit, a receipt
should be provided, and the money should be returned at the end of the tenancy period, less any expenses, but, normally, with
the addition of interest for the period concerned.

Key Deposit
You can also charge a separate amount as a deposit for keys. In some cases, keys may be quite expensive to replace, in particular
keys to apartment blocks or condos and automatic garage door opening keys. Charge a reasonable amount that would cover the
replacement of one set of keys. Again, you should provide a receipt for monies received, and return this deposit when the keys
are returned.

Charging Other Fees

Move-In Fee/Move-Out Fee
Some landlords charge an additional, returnable move-in and move-out fee to tenants. This amount, paid in advance before the
tenant moves in, is to cover any damage to common properties caused by the tenant moving in furniture. This kind of fee is more
usual in an apartment block or condominium where the tenant might cause accidental damage, e.g., scratching paint work or
damaging doors in common areas. If no damage occurs, the fee is returned to the tenant promptly.

Application or Holding Fee

Some landlords and agencies try to charge a nonrefundable fee simply for having agreed to rent to the tenant. This is sometimes
referred to as key money, and is not to be confused with a key deposit. Landlords and agencies that charge this fee maintain that
without it, they cannot promise to hold the property for a prospective tenant. This is not good practice and is often illegal.
However, in some states, you can charge a returnable application fee or deposit to anyone who applies to rent your property
check with your local housing authority to see if this is permitted in your area. This ensures that a person who says she wants to
rent your property is serious and will do so if offered the tenancy. You can return the fee to unsuccessful applicants, and deduct it
from the rst months rent for the tenant who moves in.

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You can also charge a small fee to cover the costs of any screening checks you run on the prospective tenant. This is normally a
small amount ($20$25) to cover the costs only. You may decide that you are more likely to attract tenants if you do not charge
this fee up front, and simply absorb it into your administration costs. However, if you rent out many properties or units, and
attract many applicants, the costs can mount up.
Whatever your charges, giving each prospective tenant information on fees upfront will clarify your position.

Advertising for Your Tenants

Even if your advertising plans are simple, it is worth putting some considerable effort into your strategy. Advertising well is
central to attracting tenants successfullyif you do not tell people about your property, you will never manage to lease it!

Knowing Your Market

Your own assessment of your propertys strengths and the locations advantages will already give you an idea of the kind of
tenant you may be likely to attract, e.g., a couple, seniors, a family, a single or someone with children.
Do not waste time and money advertising for the wrong tenants; some people will be unlikelywhatever you doto choose
your property. You do not want to waste time and money trying to attract tenants who will not be interested. For instance, there
is no use concentrating your energies on families with children if your property is a small apartment or is nowhere near schools
or recreation grounds.

The Simple Approach

Put up a signYou can simply put a For Rent or To Lease notice in the window of your property, or
hang a sign by the fence. All you need to provide is your contact telephone number and basic information,
e.g., 1-bed ground oor apt, $1000/month. This works well in areas where people are likely to drive or
walk by the property.

Tell peopleLet your friends and relatives know about the property, and ask them to pass the information on
to anyone they know who might be in search of a property. You may be surprised at how successful this can be:
not only will your friends pass on information about your property, but they will tell people about you too. Most
tenants want a landlord who will be responsible and concerned for their comfort and well-being, and will be glad
to learn about you from people who know you.

Advertise
Unless you are lucky, you are probably going to need to post an ad (advertisement) describing the property. Whatever kind of
advertising you choose will need to include information on the following:

contact details and the best time to call you

rental charge

utilities included (or which are not)

any other signicant features (e.g., pets welcome, no smokers, includes use of gym)

the date the property is available

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What Not to Include

Remember, anyone will be able to read your advertisements. For security reasons, you may prefer not to list your own name and
address in full in the ad, or even the full address of the property to rent. This is particularly important if the property is currently
rented; unsolicited visits from prospective tenants could be viewed as harassment by the current occupants.
It is sufcient to provide a rough idea of where the property is located. If someone contacts you for further information, you can
then tell him or her exactly where the property is and arrange to show it.

Wording Your Ad
The wording of your ad depends not only on what you are offering, but also on who you are targeting. Consider these three
factors in wording your ad:
1.

Property

2.

Location

3.

Likely tenant

Display Ad
A display ad in a local newspaper can really sell the features of your property that you have noted as attractive to renters.
However, you probably will not want or need to run into the expense of a display ad, unless your property is renting for a
considerable amount or is in a locality where you have lots of competition.
Affordable Family Home
Spacious 3-bedroom family home near good transport links.
Backyard for the kids and good shopping nearby. Rental $1,000
a month + utilities. Call 555.1234.

Pet-Friendly Apartment!
Cable TV, Internet and a balcony for you and Fido in this
cozy 1-bed apartment. All mod-cons. Your own parking
space completes the package. Rental $1,000 per month, all
utilities included. Call 555.1234.

If you are designing a display ad, pitching your ad in this way can be helpful. It will make your advert eye-catching, especially
if your headline sums up the kind of property you are offering. You can be as imaginative as you want, as long as your wording
relates truthfully to your property and is not discriminatory (see below for more information). Many local newspapers will provide
a simple design for you.

Classied Ads and Listings

If you are advertising in a small classied listing, your ad needs to be brief. Start with the property size or location as an initial
point of reference. Most people know what they are looking for and will spot your property if it ts the bill.

3-bed affordable family home, near bus and rail, shopping. $1,000 monthly + utilities. Call 555.1234.

1-bed downtown apartment. All utilities included. Pets welcome. $1,000 monthly. Call 555.1234.

Also, model your ad to similar ones in the publication, and use common abbreviations to save space.

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What You Cannot Say in an AdHow to Avoid Discriminatory Language

Once you become a landlord, you are bound by the terms of the Fair Housing Act. The federal Fair Housing Act prevents
discrimination based on race, color, nationality, sex, handicap, or whether someone has children. As a landlord you are not
allowed to say that you will only lease to people in a certain group. You cannot even ask how many children are in a family or
what their ages are.
Remember, that rule applies to all kinds of advertising, from a professional display ad or TV announcement to a handwritten ad
on a free bulletin board. It also includes any spoken information you may volunteer to a prospective tenant and when choosing a
tenant to lease to.
In order to comply with the Fair Housing Act, you have to be very careful to avoid certain wordings when writing your ad (or
speaking to prospective tenants). It is quite easy to accidentally discriminate, so here are some examples of what you can and
cannot say:

Race or nationalityObviously you must not specify any race or nationality in your ad, even if you think you
are being helpful.

Profession or classYou should be particularly careful here. If in doubt, avoid wording that might be seen
as discriminatory, such as professionals only or no students. You also cannot say that the area is a select
neighborhood, or anything else that implies that some people are excluded from living there. But you can say
that the area is desirable or in a sought after area, if that is the case.

Religion or religious referencesYou cannot specify that you want people of a particular religion to rent your
property, or that you will not rent to people of a certain religion. If your property has a religious legal name, for
instance if you are renting out an apartment in a Jewish seniors community, you must conrm in your ad that the
complex does not discriminate on grounds of religion, as this is illegal.
A note on religious symbols or picturesavoid pictures of religious symbols or signs in your ad, although you can
point out that the apartment complex has, for instance, a chapel or a resident chaplain.

Gender or sex, sexual persuasionYou cannot stipulate that you only want tenants of a particular gender
or sexual persuasion. But, there is no problem in using widely accepted terms for describing the layout of a
property, like bachelor studio, mother-in-law suite or master bedroom, as these do not really refer to gender.

Family statusYou are not allowed to specify no children or families only since this is discriminatory. You
cant specify the age of the children, or ask for married couples only. Similarly, you must not say no single
parents. Although you may be worried that your luxury apartment is unsuitable for young children, or that your
large house would be unsuitable for a single person to live in, you have to accept that this may not be the case.

DisabilityAlthough you are not required by law to make your property suitable for disabled people, you cant
specify that your property is not for disabled. But you can specify anything that your property offers such as
wheelchair access or adapted bathroom.

Smokers and pet ownersIt is ne to say that you want nonsmokers only or no pets are allowed. This is
not regarded as discriminatory.

Suggestion: If you are concerned, it is wise to include a disclaimer in your advertising materials. Include wording that explicitly
states that you do not discriminate on grounds of race, nationality, gender, religious persuasion or family status. This is usually
not necessary in a short classied, but might be advisable if your ad is more descriptive and could be misinterpreted in any way.
Important: Although the tenant is always protected by the terms of the federal Fair Housing Act, you should also check for any
additional laws or regulations that may apply in your state or municipality.

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Where to Advertise
It can seem as if advertising is an expense you could do without, especially when you do not have rental income yet. But, as
with repairs and maintenance, an initial outlay can ensure a smooth-running tenancy. A well-written and marketed ad will
attract more interest. The other thing to remember is that not all advertising opportunities cost money. Some of these advertising
opportunities may be obvious, but others may surprise you.

Local Newspapers
Many prospective tenants will have a very good idea of where they want to live, and will be hunting for available properties in
the local newspaper. You can put a small ad in the local paper, as a display advertisement or as a classied listing. Classied ads
are inexpensive and are sometimes even free.

Bulletin Boards
There are often free bulletin boards at community centers, senior centers or centers for disabled people. Other good places
might be at your local grocery store, hospital or church. Remember, even free bulletin boards sometimes ask you to obtain
permission rst.
If your property is near a local college or university and is relatively low cost, it will be attractive to students. So if you wish to
attract students, it is worth placing notices on college bulletin boards, which are often free.

Internet Listings
Many people look for rental properties by searching the Internet. They are often busy, working people who do not have time to
browse local publications, so they are unlikely to see local advertising quickly. Instead, they prefer to search online Web sites that
list information on property to rent.
There are many online listing services for property owners to list their property on. Some ask for a fee, others are free, and some
offer a free service for a limited period. Usually it is very easy to post your listing, and full instructions are provided.

Craigs List (www.craigslist.org) is a well-known free listing service that covers North America and beyond.

You can use an Internet search engine like Google to search for keywords that will likely give you the Web
sites of some listing services.

Consider looking at Web sites for relocation services such as Relocation Central (www.relocationcentral.com).
These are for people moving from one state to another, and they may well have a listings section that you can
post your details on.

ForRent.com, Rent.com and Apartments.com are other national resources.

Warning: Some listing services are better than others. Beware of any service that seems to have very few listings, does not load
easily in your Web browser or has too much pop-up advertising that might annoy the user. Never pay for a listing that asks you
to book an advertisement for more than a week at a timeafter all, if everything goes well, you could have rented your property
within a few days.

A Web Site
You or a Web-savvy friend could design your own Web site to advertise your property for rent, or you could pay someone to do
this. Bear in mind that a Web site on its own will not attract tenants, since tenants will not know that it is there. It is better to use
it in conjunction with Internet listings. Here are some tips for making your Web site more useful in attracting tenants:

Use your Web site to give full details of your property and provide a few photos.

Most people are extremely interested in the oor plan and dimensions of a property, especially if they have
larger furniture or need to work or study at home.

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You can include a link to a map of the area, or to a mapping Web site like Mapquest
(www.mapquest.com).

It is not a good idea to list the full street address of the property on the Web site or any other online services.

Tip: If you give an e-mail address for people to contact, it must be one that you read regularly! If you do not use email regularly, list a phone number instead.

Accommodation Bureaus

Your local university or college likely has an accommodations ofce and a register of available accommodations
for students to search.

Phone your local hospitals to ask if they have a similar register for nursing and medical staff needing rental
accommodations.

If there are any large employers in the area, call them to see if they have a register of accommodations for
relocating employees.

If your property is near an airport, consider contacting the airport personnel ofce to see if they have a bulletin
board or register for airport staff seeking rental accommodations.

If you would be happy to rent to short-term tenants, you may be able to attract business people who are temporarily in your
area on assignment. Contact local banks and large corporations. Keep in mind that this kind of clientele is most often looking for
accommodations that are very well-equipped and near to downtown or their place of work.
Other short-term tenants who may be less fussy about the quality of the accommodation include actors or musicians who
are playing in short-run theater shows, perhaps only for a few months. Others might include visiting professors or staff at a
university or college, or visitors from overseas. You can contact theaters, concert halls and colleges to see if they have a list of
temporary housing.
If your property is in a large city, it is likely that people relocating there permanently might be looking for temporary
accommodations. You can contact relocation services that are based in your city (look in the Yellow Pages or online.)

Advertise in Local Stores

Many people looking for a new home in a new town will look around the neighborhood to see if they like it or can afford it. They
will visit local stores or the local laundromat. Put an eye-catching sign in these locations and on supermarket community bulletin
boards. Small stores will often let you post a sign for free or for a small fee. If you are happy to have pets, post a card in your
local pet store.
Write your ad on a postcard or sturdy paper, or make a sign on your computer. It will help to provide a row of tear-off copies of
your phone number, so that interested people can easily take the details. If you do this, include both your contact information
and what is for rent, as people can forget what the tear-off was for.

Brochures or Flyers
For most people, this is unnecessary. However, if you have several properties to rent, or if you really want to describe your
property more comprehensively, you could create a property description brochure. Include interior photos and a full description of
all facilities and have it printed at a local print shop.
Some real estate agents also offer lists of rental properties. If you use this service, they will take the work off your hands, but you
will have to pay them to do it for you. The same applies to rental agencies.
Important: Avoid advertising only in specialist publications so you are not accused of being discriminatory (even if you did
not intend to be). It is a good idea to advertise to as wide an audience as possibleyou may be surprised to nd how wide an
appeal your property has.

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Check your ad. Before your ad goes to press, whether online or in print, check it thoroughly to make sure there are no spelling
errors or mistakes. If in doubt, ask a family member or colleague to look it over and see if it makes sense. It is very easy to forget
to include an essential detaillike your phone number or the rental amount, for instance.

When to Advertise
The best time to advertise your property is when it is available to rent. You may feel that there is no bad time to advertise, since
you want to start renting as soon as possible. But, if you take out paid advertising at a period when few people are looking, you
could be wasting money.
Assuming this is the rst time you have rented the property, you might want to start advertising when more people are looking.
Parents with school-age children may be looking to move in over summer vacation, or students may be hoping to move in at the
beginning of the school year, in August or September.
Keep track of where you have advertised, as well as the costs. You will not need to advertise in all the places listedjust choose
the ones that work best for you.

Dealing with Inquiries from Prospective Tenants

Once your advertisement is placed, whether in newspapers or simply as cards posted on local bulletin boards, you will begin to
get inquiries from interested people. How you deal with these can have a signicant effect on your success. If you do not respond
quickly and professionally to inquiries you are likely to lose quality tenants who will simply go elsewhere.

Phone Inquiries

If you are out, make sure your voicemail message makes it clear you will call back promptlyand do so.
Alternatively, advise callers that you will be available to answer calls at a certain time. The latter is preferable if
you do not want to have to return long distance calls.

If someone else is likely to answer the phone, e.g., your spouse or child, make sure they know what to say. Ask
them to take a message, and make sure they take the callers name and number.

If your rental property has been rented, remember that you will still get a few inquiries from people who have
seen your ad. It is courteous to explain that the property is no longer available and to thank them for their
inquiry. After all, they may contact you again in the future!

Remember, not all callers call you back. Some will nd properties elsewhere, or may change their mind. Other callers may say
they are very interested, but will later prove unsuitable. Some will arrange a meeting with you to see the property and simply fail
to show up. You have to be prepared to take this in stride.

E-mail Inquiries
If you have advertised your property on the Internet and given your e-mail address, it is likely that you will receive a
signicant number of inquiries via e-mail. In many ways, this is the most convenient way for both you and potential tenants
to communicate.

If you have provided an e-mail address for contact, it is very important that you respond quickly to messages.
People generally expect a quick response.

Give e-mail inquiries exactly the same amount of attention as telephone inquiries.

You should send a personalized message in response to the persons questions and give the same information
that you would over the phone.

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Information You Should Provide in Your Responses.

Provide information on when you are going to show the property or, if more appropriate, invite the person to
make an appointment and suggest times.

Include prepared information that will answer most general questions, including the rent, details on what is
included and what is extra.

Address any particular questions that have been asked.

Provide the full address of the property to rent.

Although your ad may have contained nearly all of this information, it is a good idea to provide it again in both telephone and
e-mail responses. The people contacting you may have only seen the ad in passing, or have been told about it by someone else.
Even if prospective tenants do have the details, they may be approaching several landlords and have a lot of information to
digest. They may forget to ask obvious questions, so volunteer information on:

the type of tenancy (long-term or short-term)

the exact date the property is available from

whether the property is furnishedmost tenants prefer unfurnished properties but some (students in particular)
may prefer furnished accommodations

what you require in terms of a security deposit and references

You can also ask inquirers what date they are looking to move into a property and if they are currently renting. Their response
will give you a good idea as to their seriousness. Some people will be making speculative inquiries, since they have not given
notice to their current landlord yet.
The included Response to Inquiries form will help you to tailor your responses. You can also use this form as a phone script when
responding to callers. The Rental Information Memo is also a good way to keep a note of what you are offering. Refer to it when
you are answering queries.
Some advice: Do not respond to an e-mail inquiry with a form letter response. Most people will value a personal response and
are far more likely to consider you as the kind of person they would like as their landlord.

What If No One Responds?

If you have done your market research well and advertised, you are likely to get at least some inquiries from serious
prospective tenants. But what if no one contacts you at all? If this happens you need to consider the following possibilities:

Have you advertised in the wrong place or at the wrong time? Advertising in a monthly glossy magazine will
not attract local students, and advertising during holiday periods may not be effective if people are busy visiting
family or on vacation.

Perhaps you have set the rent too high or too low? Both can work against youlow rent looks suspicious to
someone who assumes that there must be something wrong, while a high rent is off-putting for those who
know the going rate.

Is the market saturated? Are there already too many rental properties of this kind in the area? If so, there is little
you can do except continuing to advertise, and setting a realistic rent. Improvements and extra features may
make your property more attractive, but beware of making your property too fancy for the area. You may need
to wait, or even consider selling your property and buying to rent elsewhere.

Did something go wrong? Mistakes can happencheck that the ad you placed actually did appear in the paper
or online. Perhaps there was a mistake in your phone number or contact details? If so, contact the advertiser to
get your money back or to place another corrected ad.

Have patience. You may well get instant inquiries, but be prepared to wait a couple of weeks before your ad reaches your market.
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Showing Your Property

Once you have received inquiries from interested potential tenants, you need to arrange to show them the property. Most people
are looking to move quite quickly and will expect to see a property within a few days. There are various ways that you can
approach showing your property. The one you choose will depend on the type of property, whether it is currently occupied and
the way in which you wish to approach interviewing and screening potential tenants.

Open HouseYou can invite all those who contact you to come and look at the property at a xed time,
perhaps a couple of hours on a Saturday or Sunday, when more people will be available to come. This approach
works well if you have many inquiries, and want to whittle them down to a few serious applicants. Keep in mind
that maybe not all these people will turn up.

AppointmentsA more productive approach is to arrange individual appointments with potential tenants,
preferably on the same day in half-hour slots, for instance. Many people will be working during the day and
weekends and evenings are probably the best times to suggest.

If you are nervous about meeting so many strangers, or perhaps you are concerned about your personal safety, it is a good
idea to work with a friend, family member or an assistant. However, as landlord, you are the person who needs to respond to
questions, and you will need to collect information from your potential tenants.
You will need to cover the following:

Conduct a short walk or tour of your property.

Invite questions.

Explain your screening process.

Explain the terms of the tenancy.

Indicate when you will be getting in touch.

Conducting a Tour
Provide a brief tour of the property to rent, giving people time to look at each room. Make sure they are aware of closet space
and any special points (for instance a working replace or Internet connection socket). Point out appliances, heating and any
other features.
It is a good idea to have a measuring tape, since some people may want to gure out if their furniture would t. You should know
the approximate dimensions of rooms, and should also provide a oor plan, with measurements, for people to take with them. If you
provide measurements, include a disclaimer that indicates that all measurements are approximate.

Explain the Terms of the Tenancy

You should make sure that everyone who comes to see your property knows the following:

when the tenancy is due to start (this may be exibleyou should explain to what extent)

what kind of security deposit you require, and any other deposits required (pet; keys)

your rental policies (no smokers, no large furniture, water beds)

What Your Prospective Tenant May Ask

Do not be surprised or show annoyance if prospective tenants ask for information you have already provided. They may
want conrmation or have simply forgotten. Answer questions courteously. If you do not know the answer to an unexpected
questionis there a place to compost kitchen waste? or can I keep my bicycle in the garage? for instancesay that you

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will nd out and call with the information, and do so. Do not forget that a prospective tenant is not only assessing how suitable
and attractive your property is as a home, but will also be concerned about having a good landlord who will look after the
property and deal with tenants in a professional manner.

How to Deal with Awkward Questions

You should avoid answering any outright or leading questions about race or nationality, or any other potentially discriminatory
issues. If specic questions arise, you should answer by simply saying that there is no discrimination in your rental policies. If
someone persists, you should politely say that it is against the Fair Housing Act to answer questions about racial origin. You
should under no circumstances suggest that the person speak to local residents or consult census bureau informationdoing so
can look as if you are helping someone behave in a discriminatory way.

Explain Your Screening Process

You need to know relevant information about the people who are interested in renting your property to ensure that you rent the
property to a quality tenant who will pay the rent promptly and not cause any problems.
When you show prospective tenants around, you can ask for information that will enable you to check credentials. If they do
not have the information with them, you can ask them to call you later that day with it. If they are genuinely interested, they
will do so.
There is more information on the ways in which you can screen prospective tenants in the next section.

Contacting Applicants
At the end of your meeting with prospective tenants, ask each if they are still interested. Some will say outright that the property
is not for them.
For those who are still interested, collect contact details and screening details. It is a good idea to make your decision quickly and
contact everyone within a day or sootherwise you stand the chance of losing a quality tenant to someone else.

Note: The person you choose may decide not to rent your property. If you have been polite and courteous to all concerned, you
would stand a better chance of interesting one of the people you turned down initially if you need to nd a replacement.

Screening Your Prospective Tenants

When you meet with each prospective tenant or group of tenants explain that you will be requiring references and a rental
history, or whatever procedure you have decided on. If someone is reluctant to give you sufcient information or provide the
names of references, you have good reason to doubt that the person would be a quality tenant. If a group of people are applying
to rent together, all adults need to be screened.

Rental History
The best way to screen potential tenants is to nd out about their rental historyhow they conducted themselves as tenants in
other properties.

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To do so, you need to ask for a reference from a landlord. Basically this means speaking to prospective tenants current and
previous landlords, either by letter or, more usually, by phone. The kinds of questions you ask can really help you to decide
who would make a quality tenant.

You should ask for the name and address of the current landlord and, if possible, a previous landlord.

If you are renting to a group who have not previously lived together and will be sharing the rentfor instance,
a group of studentsyou should obtain a rental history for each.

You should prepare questions that will give you a clear indication of peoples suitability as tenants.

You can use the Request for Rental History Verication letter included to help you word a request for a letter of reference, or as a
telephone script.
Once you have information from the previous landlord, consider the responses carefully, with these issues in mind:

If the person did not pay rent on time, or still owes money, he is not a quality prospect.

If the tenant mistreated the rental property, other than unavoidable wear and tear, you should be concerned.
You should also ask if the person damaged common areas like the laundry or garage areas.

If the persons current landlord has reason to withhold some of the security deposit when he leaves, you have
cause for concern. However, ask questions since accidental damage may be unfortunate, but not necessarily a
sign of a bad tenant.

Be concerned if the prospective tenant violated the terms of his lease. In particular, if there are complaints on
le of unacceptable behavior, such as loud noise or criminal activities, you should be concerned.

If the answers to your other questions indicate problems, you have good reason to be concerned. However, also
consider that the person may have been part of a group. Make sure that it was the tenants specic behavior
that was problematic.

Watch Out for Inappropriate References

If the potential tenant has given you the name of a friend or relative as a reference, that person will not be able to provide an
objective, unbiased opinioneven if with the best intentions. If someone has been living at home until now, she may provide a
parent as the referencebut this not suitable. Ask instead for an employer or college professor reference.
Also consider that a persons current landlord might give a good reference, simply to get rid of the tenant. If you suspect this
might be the case, ask for an additional reference from a previous landlord who is not the tenants current landlord.
Bewaresome less scrupulous people may lie, and give a friends name as a previous landlord in order to mislead you. This
person will tell you that the person was a wonderful tenant. When you phone a previous landlord, always ask for the exact
address the person rented.

Rental Application
A formal written application from each prospective tenant is not always needed, especially if you are simply renting a room in
your own home. Whatever your approach, it is a good idea to interview prospective tenants separately, and ask them to ll in a
short questionnaire.
If you have many interested potential tenants, and especially if you will be collecting screening fees, you should ask them to ll in
a Rental/Credit Application form. You may need to justify why you rejected someones request to rent, and the application form
will provide a record of the details.
If you decide to use a Rental/Credit Application, make sure you use the same form for all prospective tenants. Remember that
you must get authorization for any credit checks or criminal record searches.

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Even if you do not feel a full application is necessary, ask for:

personal information and contact details

employment details

rental history

references

any criminal convictions

Some Points to Note

personal details

photo ID (to verify the person is who he claims to be)

employment
Not all tenants are employed, but you will need to know that the person has a way of paying the rent regularly,
and on time. If you are willing to rent to people receiving benets or on a student grant, you still need to be
condent they have the ability to pay the rent. You can protect yourself by asking for a co-signer. A co-signer is
someone not living at the rental propertyoften a parent or relativewho has agreed to cover the rent if the
tenant proves unable to meet the payments. Use the Co-Signer Application included to formalize this when you
accept the prospective tenants application. You will also need to do a credit check on the co-signer.

previous landlord

Criminal Convictions
You will likely be unhappy about the prospect of renting to someone who may have a criminal background. In particular, and of
understandable concern to landlords, are terrorist offenses or sexual misdemeanors.
Important: You can ask if someone has been convicted of an offense, but you cannot ask if someone has ever been arrested for
an offense. Arrest does not prove that someone is guilty, and could be construed as a leading, discriminatory question.
Indeed, someone may lie to you about his or her criminal record, either on the form or during your interview. If you nd out later
that this was the case, you will have clear grounds for eviction. Ideally, however, you want to be condent that your tenant has
not been convicted of a criminal offense.
If you have real concerns you can in many but not all states obtain more detailed information on someones criminal record.
There are agencies or bureaus that you can pay a small fee to run a criminal record check, many of which have Web sites listing
their services in full. However, this service can take a couple of days to complete.

Credit Report
You can also pay a small fee to a credit reporting agency to ensure that the person has a good credit record. A credit report will
also provide information on the persons address, payment history and any bad debts. You need to be aware that the Federal
Fair Credit Reporting Act governs how and why information on someones credit history can be obtained and to whom the
information can be disclosed. Using a reputable credit reporting agency will help to ensure that you comply with the law. The
three main agencies are Equifax (www.equifax.com), Experian (www.experian.com) and TransUnion (www.transunion.com).

Obtaining Consent to Undertake Credit Checks

It is important that you obtain the prospective tenants permission to undertake credit or criminal record checks. You should
obtain this in writing from each person you want to check, using the Authorization for Credit Check included.

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No Credit History
Some people may have no credit history because they do not regularly use a credit card. Do not assume this makes them bad
tenants. Instead, ask if you can contact the utility companies they used to nd out if they paid bills on time. Also ask for copies of
their latest utility statements.

Are References Really Necessary?

You may feel that after a few calls, you have enough proof that the person is employed and able to pay the rent. There is no
legal requirement to obtain references or to run any kind of checks, but you will be relying on this person to provide you with
regular income, possibly over a long period of time. If she fails to pay rent, you could fall into debt and even have to sell your
investment property.
In summary, remember you are not evaluating the prospective tenant for a job or as a potential friend. You are simply looking to
check that she is likely to be a reliable and responsible tenant who will pay rent regularly and on time. So do not fall into the trap
of feeling that only people who are like you make suitable tenants.

Be exible and open-minded.

Try to second-guess your own prejudicesfor instance, the thought of renting only to people your own age
or gender.

When to Screen?
You can do some screening before deciding on whom to accept as a tenant. In a situation where you have many applicants for
a property, this may be the easiest way. Collect screening fees up front with the application materials. You can accept a tenant
subject to references and credit check, or by whatever procedures you have chosen. In both situations you must receive the
persons written consent to screen as part of the application, and you must indicate at what stage screening will take place.

Accepting and Rejecting Tenants

Assuming that you have more than one suitable person interested in the property you are renting, you will then have to make a
decision. You will also need to inform all the people who were seriously interested in your property, including those you rejected.
You should do this in writing, although a friendly phone call rst is always courteous.

Accepting a Tenant
Contact the person you would like to accept rst and as soon as possible, so that he or she does not nd somewhere else to live.
Once you are assured this person would like to rent the property, you could obtain an application deposit, or arrange to complete
the leasing paperwork. You can also modify the included Rental Acceptance Letter to include your information.

Note: Go over your rental policies in detail again with the person you are accepting, preferably in person. Make sure he or she
is in agreement with everything and that there are no misunderstandings. You can sign the lease and accept payments at this
point, or on the day he moves in.

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Rejecting a Tenant
Grounds on which you would reject a potential tenant include:

criminal convictions

negative references from previous landlord

history of nonpayment of rent

poor credit

previous evictions

The above grounds are self-explanatory, but you can also choose to reject potential tenants on grounds such as insufcient
income to meet the rent, orfor exampleif a tenant wishes to move in large furniture or appliances that you feel would cause
problems in your property. However, you must make your policies known to all prospective tenants, so that you apply the same
policies to all.
Remember that you are much more likely to attract tenants if you are not rigid in your policies, and are willing to make things
work within reason.
Hint: Normally, someone should expect to pay up to approximately 3540 percent of his or her income as rent. This gives you
a ballpark gure to determine if your prospective tenant is likely to be able to meet the rental amount. But do not assume that
someone on low-income benets cannot be a reliable tenantif your other criteria are met, he or she may well turn out to be
perfectly suitable.

The Law on Credit Reporting Information

Important: If you are rejecting someone as a result of information obtained from a credit report, the Fair Credit Reporting Act
requires that you give the person certain information:

The name and address of the credit reporting agency that provided the information used in your determination.

You must tell the person he or she has the right to obtain a copy of the report from the agency within 60 days.

You must explain that you, rather than the agency, made the decision to reject the person.

You must tell the person that he or she has the right to dispute the accuracy of the credit report.

This requirement also applies if you accept a person as a tenant but, because of indications on their credit report, require a
higher security deposit than you would of other tenants. All requirements apply only if you have engaged a credit reporting
agency or a screening service to do the credit search.
These requirements do not apply to other aspects of screening, such as previous landlord references, employer references or
simply your inherent feeling toward the person. You are under no obligation to explain all your reasons for not offering someone
your property, unless the prospective tenant asks for this information in writing. You are then normally expected to respond
within a reasonable period, usually 60 days.
Included is a Rejection Letter-Bad Credit that you can adapt to send to an applicant who failed a credit check. It contains the
information you are required to include, by federal law. Also included are two rejection letters that you can use where you did
not do a credit check: Rejection Letter-General and Rejection Letter-References.

How to Choose
It may be that several people are interested in your property, all check out as perfectly suitable and you cannot choose among
them. In this situation, it is fairest to go with the person who contacted you rst and to inform everyone of this.

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Remember, you cannot reject a person on grounds that are discriminatory. You should be very careful not to choose or reject a
person on grounds of national origin or ethnicity, disability, gender or marital status.

The Rental Agreement or Lease

The rental agreement, or lease, is a legal document that lays out the terms for renting your property and the conditions the
tenant must meet with regard to payment. It also describes your responsibilities as landlord as well as the tenants rights.
Normally, a lease is for a xed period, usually 1 year, renewable on a regular basis. You are under no obligation to have a written
agreement with your tenant, but you should be aware that a written agreement protects both landlord and tenant. If you provide
a clear rental agreement or lease, your tenant will be far more condent about his or her position.

The Difference between a Lease and a Rental Agreement

Broadly speaking, a lease usually stipulates a tenancy for a xed terma specied period of time, often 1 year. You cannot
normally increase the rent or change the terms of the tenancy until the lease expires. Leases are more likely to encourage longterm tenants who are looking for a secure period of predictable rental payments.
Rental agreements are often on a month-to-month basis. This means that both you and the tenant can terminate the agreement
with 1 months notice. You may be less likely to attract a long-term tenant on this basis, but it does give you much more exibility.
Both leases and rental agreements lay out the obligations of both tenant and landlord and explain the terms of the tenancy.
The terms and policies in a lease or rental agreement are somewhat up to you. You should make sure that any policies you wish
to enforce are clearly listed. In addition, you must follow any local laws that apply in your area (consult your local library or
housing authority for more information).
You can adapt the included Residential Lease or the Monthly Rental Agreement to suit your needs. You can add your own
policies or clauses, providing they do not discriminate in any way or contradict the law.

Note: The forms in this pack may need to be adjusted to comply with local statutes in your area.
You should include extra policies as additions or addenda. An addendum does not need to be a complicated document. A Satellite
Dish/Antenna Addendum is included, as well as a Lease Agreement Addendum that you can modify easily for various circumstances.

When to Have the Lease or Rental Agreement Signed

Until your prospective tenant signs the lease or rental agreement, he is not legally bound to the agreement and can choose to
lease another property instead.

It is best to sign the lease as soon as possible, which gives you both security.

When your tenant comes to sign the lease (either before or on move-in day) ask him or her to bring photo
IDfor example a drivers licenseand Social Security card.

Your tenant should bring the balance due (rent and any security deposits), ideally in cash, money order or
certied check. You should provide a receipt for all monies received, and keep records of all subsequent rental
payments made during the tenancy. The Rent Receipt included is sufcient to acknowledge payment, although
you may wish to send your tenant a monthly Rent Statement. This will remind your tenant of the amount owed,
and provide both of you with a written record.

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Tailoring the Lease to the Tenant

You may attract tenants to your property by showing some exibility when it comes to the duration of the lease. Some tenants
may prefer a lease that is less than a year in duration. For instance, students may prefer a 9-month lease, so they can move out
and go back to their parents home at the end of the school year. At the other end of the scale, temporarily reassigned executives
or, for instance military personnel, may also prefer shorter leases so they can move out without signicant penalty.
You could consider offering one of these options:

A lease that is shorter than 1 year.

A 1-year lease with the option for the tenant to terminate the lease with 30-day written notice under certain
circumstances. (Normally a tenant on a 1-year lease has to pay all rent until the end of the lease, unless the
landlord nds a new tenant.)

If you choose the second option, you can decide as part of the tenancy what circumstances allow a tenant to terminate the lease
without penalty or with a lesser penalty. You can also charge the tenant a fee for early termination of the lease. Although you do
not want to put yourself at nancial risk, it can pay off to be open to discussion.

Clarify Anything That Could be Open to Dispute Later

Allow your tenant plenty of time to read the lease and to ask any questions. Make sure that nothing is confusing or likely to be
misinterpreted. Clarify important points, especially regarding the terms of payment and cancellation, and also the security deposit
and what it covers. It is a good idea to read these clauses with the tenant and leave no room for dispute.

Offer Tenant Perks

Although you may not be in the situation of a large property management service, which can offer nancial perks such as airline
miles to tenants, there are small perks you can provide or suggest. These can go a long way to building tenant loyalty and will
help you to retain tenants who feel you are a good landlord. For instance:

Offer a small discount on rent to tenants who are willing to take care of the yard or garden. In particular, if you
are renting a shared house to several tenants, one of them may particularly enjoy the chance to garden and
make a modest amount from it.

Offer a discount to a tenant willing to act as cleaner for the common areas of the property.

Offer a bonus or special payment if a tenant who is leaving nds a replacement tenant who is suitable.

Allow tenants to redecorate their part of the property. Be careful hereyou do not want a dcor that will
turn future tenants away. Make your redecoration policies clear and put them in writing in the lease or rental
agreement. Normally, a tenant should restore a property to its original condition upon leaving.

Note: As landlord, you are still ultimately responsible for the condition of your property, so you need to act in a supervisory
capacity to ensure the work is done to standard. Also, make sure that any perks are explained in writing to avoid confusion as to
how much rental discount there will be and what needs to be done to earn it.

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Itemize Exactly What Is Included in the Rental Payment

All leases or agreements should list precisely what utilities are included, either as part of the lease document or as an addendum.

Tenant Installed Services

If Internet and cable are not included, you might want to put in writing on what terms a tenant can install these (i.e., at the
tenants own expense, and that he or she is entirely responsible for any installation costs, ongoing costs andimportantlyfor
terminating and closing the account when moving out).

Storage and Parking

You will want to list storage and parking if included. If parking includes a paid reserved space, you will need to itemize this
charge or factor it into your rental charge. Normally, you would not charge extra for parking unless you are liable to a charge.

The Terms of Payment

If you are willing to be exible with the lease, you need to ensure that your tenant keeps his or her part of the bargain in turn.
Make sure the tenant understands the terms of payment and put these in the lease. Specically stress that:

The tenant cannot apply any of the security deposit or advance rent toward any charges you make for early
termination. You need to keep that full amount until the tenant leaves the property in case you have to use it to
cover for damage or breakages.

Unless you agree otherwise, the tenant must leave at the end of a month and is not entitled to any return of
rent if he or she leaves in the middle of the month.

In particular, if your property is an apartment or in a shared building, make sure that the tenant is aware that
deductions to the deposit will also apply if there is damage to common areas, such as laundry facilities, hallways
or storage lockers.

The tenant is responsible for paying rent on time. Specify any charges that you will make for late payments
and implement them if need be.

Arrange how the rent is to be collected. You should avoid visiting the property to collect rent in person, if
possible, since this could be seen as a disruption of privacy, and in any case is not really necessary. Ask for postdated checks when the lease is signed or arrange for the tenant to mail you rental checks. Alternatively, you can
use one of the many services that will process electronic rent payments, allowing the tenant to pay you by credit
or debit card.

The Landlord-Tenant Relationship

From the moment your new tenant signs the lease to rent your property you have a responsibility to him or her, and can also do
a great deal to retain him or her long-term. Fullling your duties as a landlord, and doing so promptly and efciently, should be a
priority in your mind. This is the way to retain quality tenants. Tenants value a good landlord-tenant relationship just as much as
landlords are glad to have reliable, prompt-paying tenants in their property.

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Your Legal Obligations

The legal requirements of a landlord vary from state to state. To nd out exactly which laws apply in your state or municipality,
you need to contact the housing authority for your area. As a landlord, you have certain legal obligations to your tenant. Leasing
laws can vary from state to state, but in general you are normally required to:

Comply with safety and health regulations for rental properties in your area.

Keep the property in good repair; attend to maintenance in an ongoing manner, and deal with emergency
repairs and other urgent issues immediately. This includes any common areas that you own.

Maintain electrical, plumbing, heating and air conditioning xtures. Make sure that any permits or regular checks
are undertaken.

Provide garbage containers and arrange for garbage collection. (This normally only applies if you are renting a
property of four or more separate units.)

Provide adequate hot water and heating (if you are including it as part of the rent).

You should also respect that after moving into your property, it becomes your tenants home. You do not have
the right to breach his or her privacy, andexcept in emergencyshould give at least 24-hour notice if you
need to enter the property. Use the Intent to Access letter to inform your tenant, but try to follow-up with a
phone call to check that he or she would not prefer a different time.

Tip: Be considerate to tenants and give more than 24-hour notice if possible, and keep your visits to ofce hours unless your
tenant specically prefers another time. You are visiting someones home, and you should respect this. Although you do not need
to give prior notice unless you need to enter the premises, it is common courtesy to inform tenants if you are coming around to
inspect the exterior or undertake landscaping or yard work, for instance. A bit of thought really pays off, and will gain you more
respect from your tenants.

Your Responsibilities Regarding Repairs and Maintenance

There are certain basic legal requirements with regard to adequate light, electrical wiring and ventilation in particular. Other
regulations, which differ from one locality to another, cover issues of heat, weatherproong, and general habitability. Fire safety
is a legally enforced consideration in nearly all parts of the United States, and the installation of smoke alarms is a requirement
in most situations.
Since the precise regulations can vary not only from state to state, but from one city to another, it is important that you consult
the regulations for the authority in which your property is located. Make sure that you are aware of any state or local housing
codes and what you must do. There are penalties for failing to comply. For more information, contact your local housing authority
or ask your public library for copies of the statutes that concern landlords.
Remember that if you do not maintain your property within the legal requirements for a rental property, you may not only be
open to nes and other penalties, but your tenant may even be entitled to pay you less rent. The cost to you will always be far
more than simply ensuring that the situation does not arise. Although the various rules and regulations may seem fussy, they are
essential to ensuring a safe and habitable living environment and sanitary conditions. They will also help maintain the value of
your property.

Watch Out for Lead Paint and Asbestos

Federal laws cover landlord responsibility regarding both these environmental health hazards. You need to ensure that you
comply with the regulations, even if this means signicant cost in order to bring your property into compliance.
Lead poisoning from paint work in older properties has caused signicant health problems. For this reason, the Residential LeadBased Paint Hazard Reduction Act was instituted in 1992 (often known as Title X (10)). Before commencing a rental agreement,
all landlords are required to give the tenant the booklet Protect your Family from Lead-Based Paint in Your Home or a state-

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approved booklet on the same subject. You and the tenant have to sign an Environmental Protection Agency (EPA) form that
discloses any known lead-based paint in your property. However, it is far better to eradicate any traces of lead-based paint by
repainting your property with modern materials. Since lead poisoning is a serious matter, landlords who do not disclose the
presence of lead-based paints can face signicant nancial penalties. If you renovate a currently rented property, you may have
to provide hazard warnings to tenants if this involves disturbing lead paint.
Copies of the booklet and disclosure statements are included in English and Spanish on the CD. Remember that in addition to
federal laws, your state may have different requirements. There are also certain categories of housing that are exempt from the
regulations, usually because the complete absence of lead-paint was certied on construction. You can nd more information on
lead in the home at www.hud.gov/ofces/lead/.

Why Go the Extra Mile?

Consider these three scenarios:
1.

A poor landlord will be slow to arrange repairs and maintenance and may fail to adopt required safety
procedures.

2.

An adequate landlord will ensure that nothing of major signicance is wrong with the property and will comply
with all safety requirements, but will put off ongoing maintenance and ignore worn or shabby dcor.

3.

A good landlord will take pains to ensure that the tenants are comfortable and living in a well-maintained
property that complies with all regulations, and will respond promptly to tenants concerns. He or she will also
upgrade aspects of the property or appliances on a regular basisnot just when repairs or breakdowns occur.
This landlord will never interfere with the tenants privacy, and will always give as much notice as possible when
entry to the premises is essential.

If you act as a considerate and concerned landlord from day one, you will win your tenants over immediately and gain their
loyalty. A recent survey by the National Multi-Housing Council indicated that renters rate customer service highly when
considering whether to renew their lease and stay in a property.

Moving In a New Tenant

When your tenants move in, be there to greet them and do a walk-through. If you have not already completed the leasing
paperwork with them, this is also the time to do that and ensure that they understand all the terms. You should also collect the
rst rental payment and all security deposits if you have not done so already.

Walk-through or Initial Inspection

You and the tenant should ll in the Pre-Lease Inspection form. For a furnished property, in particular, you may want to verify
an inventory.

Conduct a walk-through with the tenants, lling in the inspection form as you go.

Make a note of any damage or wear, and invite the tenant to point out any he or she would like noted. For
instance, the carpet may be stained or there may be scratch marks on the kitchen work surfaces.

When you and the tenant have agreed, you should both sign the form to acknowledge what has been indicated.

Check the inventory with your tenant before moving his or her belongings in, going through each item in the
property and checking it off the list.

Do not be embarrassed to list everything, from spoons to sofas.

If the property is unfurnished, you can simply combine the inspection and inventory.

You and the tenant should sign the agreed upon inventory.

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You can also provide a welcome letter, providing your contact details, and any other details that will be of use to the new
tenant. For your own purposes, you can keep a Tenant Information Sheet, which is particularly useful if you manage more
than one property and need to keep track of several different tenancies. You can record information such as pets in the
property, any special circumstances or agreements and storage and parking details. Use a separate Tenant Payment Record
form to keep track of payments.
Once you have all the paperwork completed, you should send the tenant a copy of everything, normally within a legally required
period of time (this can vary from state to state, but is normally within a month or less).
When your tenant moves out, you will need to have your copies to check the inventory again. On the day the tenant leaves, you and
the tenant should complete the Post-Lease Inspection form and compare it to the Pre-Lease Inspection you lled out together.

Communicating
Perhaps the most vital aspect of the landlord/tenant relationship is good communication. If your tenant feels that you have
explained the terms of the tenancy clearly, he or she is likely to behave reliably. You should always act in a professional and
friendly manner when communicating with tenants. Be careful not to become too friendly however, as you need a degree of
distance in order to keep things professional. It will be difcult to deal with a problematic tenant who feels you have crossed the
line between landlord and friend.

How things workWhen your tenant moves in, spend some time helping him or her get to know the
property. Once the paperwork is complete, spend some time explaining how things work. For instance,
demonstrate how the microwave, washing machine or any other appliances operate. If possible, provide
appliance handbooks. Also explain emergency and re procedures, and make sure the tenant knows exactly
how to contact you in case of need.

Your policiesGo over your policies regarding use of common areas, storage and tenant appliances. Make
sure there are no confusions, and answer any questions. Make sure all policies are also explained in your rental
agreement or lease.

Ongoing communicationAs a landlord you will need to communicate with your tenant from time to time.
Explain how you will do this and in what circumstances you would need to enter the property. Explain that you
respect the tenants privacy and will provide 24-hour notice, except in an emergency.

Contacting youAlso assure your tenant that you are happy to be contacted with queries or concerns. Make
sure he or she has your contact information and knows the best time to reach you.

Note: Once you are a landlord, you, or someone you appoint, must be available for contact 24 hours a day to respond to any
emergency inquiries from your tenant. Make sure your tenant knows whom to contact if you are away.

Deal with Complaints about Problem Tenants Effectively

If your property is one shared by several separate tenants, for example a shared house or several units of a condo, you need to
make sure that problem tenants do not cause your quality tenants to vacate. This can be a signicant problem, since frustrated
tenants who see no action from their landlord can decide that it is easiest just to walk away and move to a more comfortable
environment. So while this kit is mainly concerned with how to attract and retain quality tenants, the way that you deal with
tenant activities that are annoying to other tenants is also important.
The main problems with tenants that will affect other tenants in the same building are:

noise

inconsiderate behavior

criminal activity

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Noisy tenants may not realize they are causing a problem with their loud music or raucous barbecues. Similarly, an
inconsiderate tenant may simply need reminding that bicycles, for instance, cannot be left in the hallway. Initially, contact these
tenants with a letter explaining that there has been a complaint and asking them to comply with the policies outlined in their
lease or rental agreement. If this does not resolve the problem, you will need to institute any nancial penalties outlined in
your policies and eventually, initiate eviction proceedings.
The Excessive Noise letters are examples of rm letters alerting a tenant about noise issues. You can only deal with complaints
that directly violate the terms of the tenants lease. If you allow smoking, but neighbors are complaining about the smell of
cigarettes from the tenants balcony, there is very little you can do about it in legal terms. As a good landlord, you can try and
provide a solution. If you are renting a condominium building, perhaps you can offer the tenant a different apartment, for
instance.
A tenant engaged in criminal activity can be subject to immediate eviction. But be careful; you cannot assume that someone is
acting in a criminal manner simply on another tenants information. You should report your suspicions to the police and ask them
to investigate. Never try to deal with a potentially dangerous situation yourself.

Eviction
If you need to commence eviction proceedings, you need to obtain a court order since under the Rent Act of 1977 you cannot
evict a tenant without legal grounds. At this point, you should take legal advice on your course of action.

What if Tenants Choose to Move Out?

If your quality tenants decide to move out and do not want to renew their lease, you should ask them why. When they give
their written notice of their intention to leave, send them a friendly acknowledgement, but also use this as an opportunity to
ask why they have decided to leave. They may of course have reasons completely unrelated to the propertya job move or
a change of family circumstances. But if it appears that tenants do not feel motivated to stay in your property long-term, you
need to know why.
Inviting tenants who have given notice of moving out to complete a short questionnaire can be helpful. You are more likely to
get a result if you are friendly and brief. Provide tenants with a Move-Out Reminder letter that reminds them of their duties when
it comes to moving out. But also enclose a Move-Out Survey, to encourage feedback on your landlording skills.
You may be surprised to nd that there are aspects of the property that need improvement. For instance, it may become
apparent that the decorative state of the property is considered out-dated or depressing, or people nd the property drafty, or
the heating is noisy. These kinds of problems may be easily rectied, and you should consider offering to x them so that the
tenants reconsider their decision. The expenditure involved may well be worth it in order to retain quality tenants for a longer
time. If in doubt about the expenditure, consider the money you will lose if your property is consistently empty for several months
of the year.

Conclusion
Attracting quality tenants and keeping them for the long term pays off in many ways. Finding new tenants will cost signicantly
more than retaining existing tenants, not to mention the peace of mind that can come with having tenants you know and are
comfortable with.

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Further Information
You can nd the laws that govern the landlord-tenant relationship in the U.S. Code. This can often be found in libraries and is
online at the Cornell Law Library at http://assembler.law.cornell.edu/uscode/.
The U.S. Department of Housing and Urban Development Web site (www.hud.gov) can give you detailed information on the Fair
Housing Act, and any exemptions that may apply to you.

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The Forms Included in This Kit

Co-Signer Application
HVAC Inspection
Monthly Rental Agreement
Notice of Change in Rent
Pet Policy/Residential Lease AddendumPets
Pre-Lease/Post-Lease Inspection Form
Rent Receipt
Rental/Credit Application
Residential Lease
Security Deposit Receipt

Other Forms Included (on CD only):

Authorization for Credit Check
Cleaning Checklist
Excessive NoiseFirst Warning
Excessive NoiseSecond Warning
Lease Agreement Addendum
Monthly Rental Calculator
Move-Out Reminder
Move-Out Survey
Move-In Letter
Notice of Intent to Enter
Property/Neighborhood Features Checklist
Rejection Letter-Bad Credit
Rejection Letter-General
Rejection Letter-References
Rent Statement
Rental Acceptance Letter
Rental Information Memo
Request for Rental History Verication
Residential Inventory List
Residential Rental Application

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Response to Inquiries
Satellite Dish/Antenna Addendum
Statement of Security Deposit and Itemized Deductions
Tenant Information Sheet
Tenant Payment Record
Unconditional Quit NoticeExcessive Noise and Drug Use
Federal Lead Based Paint Hazard Disclosure Requirements
Protect Your Family from Lead-Based Paint in Your Home Booklet
Lessors Lead Paint Disclosure Information
Spanish Version-Protect Your Family from Lead-Based Paint in Your Home Booklet
Spanish Version-Lessors Lead Paint Disclosure

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