What You Need to Do Before Your First Tenants Move In
Having your first tenants move into your newly renovated property is probably one of the most exciting steps of the whole income property project. However, it takes a lot of effort to get to this stage and, even when you get here, the work doesn’t just end. There are plenty of things you need to do before having your first tenants move in and you’ll come across a few tasks during and after the move-in process as well. With that said. Here’s what you need to know before your first tenants move in!
#1 Always Screen Your Applicants First
The whole process of renting properties would be a lot easier if you could just let anyone in. However, you can’t just pick any random tenant to occupy your unit. Unless you’re willingly signing up for trouble. Irresponsible tenants are likely to be late with rent payments and they can even cause serious damage to the property. Dealing with these issues leads to evictions, which are never an easy problem to tackle. Hence, it is important to do your research before letting someone live in your rental property. This is known as the process of screening tenants and it includes looking into their employment history and income, checking their rental history and references, as well as making sure their credit information is clean. The easiest way to collect this info is to request potential tenants to fill out a rental application, which will allow you to narrow down your choices.
#2 Have a Pre-Move-In Checklist
Once you’ve selected the right tenant or tenants for your property, you will move on to the final prep. This is where I suggest using a pre-move-in checklist just so you stay on track with all the little tasks on your to-do list. From getting the property ready to the slightest detail to communicating with the tenant, you’ve still got a couple of things to take care of. Your pre-move-in checklist should include cleaning the property, creating and signing the lease agreement, changing the locks and creating an extra set of keys, giving your contact info to the tenant, collecting the security deposit and first month’s rent, doing the final rental inspection with the tenant, testing lights and appliances, providing condo rules if necessary, etc.
#3 Get Ready for Paperwork
Many newbie landlords are terrified of the idea of doing paperwork. Renting a property requires a lot of administration as it is a business relationship between you and the landlord. Hence, there are many landlord-tenant laws to be followed. Once you familiarize yourself with the law to ensure you’re not making any breaches, create a Residential Lease Agreement to set the rules for the residential tenancy. Consider getting help from a local attorney during this process. Keep in mind that this agreement protects you from liability and prevents confusion over rules and other terms. It also protects the tenant’s rights so it is a win-win kind of deal.
#4 Know Your Responsibilities
If it’s your first time renting out a property, make sure you’ve done your homework and learned what your responsibilities as a landlord are. This includes complying with building codes, making sure the property is safe and sanitary, maintaining the infrastructures for plumbing, electrica, and water, as well as following the responsibilities listed in the agreement. The tenants, on the other hand, have their own set of responsibilities, including following the terms of the agreement, paying rent on time, complying with rules and properly disposing of trash.
#5 Be Ready for Maintenance and Repairs
Last but not least, get ready for the biggest responsibility of all - handling maintenance and repairs of the property. Even after you finish the renos and have a tenant move in, you are still expected to handle bigger maintenance issues and jump in whenever the tenant needs help with something of that sort. This can include anything from a broken dishwasher, fridge, or toilet. It is important to take care of such issues in a reasonable timeframe. Hence, you have to be ready to respond at any time. If you’re not really keen on handling maintenance, you can always hire a property management firm to handle all of this for you.