Lease Terms

You may want to allow a shorter lease term or offer an early termination clause (you can charge a higher rent or require a cancellation fee). This works well for corporate transferees and relocating families who plan on purchasing a home. They also can be good tenants as their move is often subsidized or they have cash from the sale of their home.

Getting Creative

Offer a step-up lease for a desirable tenant who is unsure of the rent. A step-up lease starts at a lower rent and increases after a six month period. You may want to include verbiage that the tenant can cancel the lease without penalty at the end of six-months if he is unwilling to pay the rent increase.

-Be flexible about allowing small pets (with an additional pet fee or deposit).

-Allow the tenant to pay the security deposit over a period of several months.

About Credit Challenged Prospects

Due to the loss of a home and other issues arising from this economy, many prospective tenants will have damaged credit. You may want to be flexible on credit standards as many of these people have money and will need a home; it makes sense to try and find a way to work with them.

-Do not let a tenant with a poor credit history spread out his security deposit over several months.

-Be sure to perform a detailed background check.

-Set the ground rules going in. For example:

* The rent is due in full at the first of the month.
* The late fee goes into effect on the 4th.
* The eviction process starts on the 8th.
* If they vacate by the 15th, leaving the unit undamaged and broom-clean, their security will be returned, otherwise you will file suit.

I have been listing rental properties here in the Stuart area since 2003 with few problems. But I have had several evictions over the past year, largely due to the recession. That said, as a landlord it is important that you perform your due diligence and enforce tenant rules.

Recently I was asked to draw up a lease where the landlord required the tenant to pay electronically. I submitted the request to our lease attorney who provided the following reason why we should not have such a clause in the lease:

“In the event of an eviction if the tenant has access to owners or property managers bank account and the tenant deposits money after the eviction has been filed it would stop the eviction and cost the owner or property manager more money. Also, that bank account would become part of the exhibits during an eviction action.”

A real estate attorney can explain all the ramifications of accepting direct deposits into your account but the “long and short” of it is that if the tenant deposits money into your account after you initiate an eviction, it can cause you to have to start the process all over or worse.

Under the best of circumstances being a landlord (especially an accidental or out of town landlord) can be a challenge. Working with a qualified rental agent will help you minimize the pitfalls of being a landlord and procure the best tenant, in the shortest possible time and with the least amount of stress.

Stuart, Florida Realtor Eric Slifkin, serves South Florida’s Treasure Coast. You can reach me at 888-288-1765, or visit my main Web site at www.TreasureCoastHomeSales.com.

As your resource for information on new or resale homes and rental homes throughout the Treasure Coast, please be sure to contact me with your needs or for information concerning any home you may find on the Web, yard sign or ad. I will be pleased to research the property, arrange showings and handle all the details.

In the current real estate market, many home sellers out of necessity have become landlords. If you are considering renting out your home, getting your property “rent-ready” as quickly as possible is essential to success in maximizing your rental income and finding a quality tenant in the shortest time possible.

When it comes to rental homes, you should consider the following:

-When leasing a property you only get one chance to make a good first impression. It is essential that the home look as good as possible before marketing of the rental begins.

-A rental in good physical condition will attract better quality tenants, who will pay higher rent and present fewer problems.

-Vacancies are expensive! Some maintenance costs can be recovered, but not vacancy – once it’s gone it’s gone. A lost month’s rent cannot be recovered.

In preparing your property for rent, inspect the home and note any repairs that may be needed. This includes appliances, plumbing and A/C systems, which must be up to code and in good working order. Broken windows, doors, cabinets and fixtures should also be repaired or replaced. Next you will want a fresh coat of paint followed by a thorough cleaning including floors and rugs.

Curb appeal is as important in a rental as a sale, so make sure the lawn is cut, shrubs trimmed and outside repairs completed. Patios, sidewalks and driveways should be power washed and the roof inspected by a professional roofer.

If there is a homeowners association, make sure to complete any required forms and obtain an application along with a copy of the rules and regulations for the tenant. You will also want to make sure you have gate clickers, garage remotes, pool and mailbox keys ready to go. If you are working with a Realtor®, he or she will need these items with the signed rental listing agreement.

Getting your rental property “rent-ready” will ensure you procure the best tenant, for the most rent in the least amount of time!