I Agree 👍!!! Since I hired a property manager my business is running Much better!!!! I'm not Good at screening these tenants!!!! I Fired myself!!!! Smokers are Absolutely the Worse!!!!!!
You are young but knows a lot with confidence. Explain very clear, easy to understand and point very well. I took a lot of memo for my future tenant. I appreciate all !!
I inherited my parents home and I thought I might rent it out. The first woman I showed it to told me she could put two beds in the attic and one in the basement. I listed and sold the property.
Mandy, you are so real!! My dad has a property manager that really doesn't do things thoroughly... or at all without us having to remind her. We're thinking of shifting the responsibility to myself, and your videos have been so helpful. Everything you share is realistic and practical -- exactly what I need. Also, you have such a kind and gentle personality! Thank you for being you and sharing your wisdom!
I have some tips and tricks, but your video is very well put I've been a landlord for 42 years and I'm still learning After somebody wastes money with a bad tenant your points are are very good, as a landlord you're never through learning until you die. Thank you for your video😊
One thing I advise landlords to stay away from is this advice on RU-vid where they tell you to “look to see if they have a dirty car”… Your screening criteria need to be “objective” and “measurable” … Now, before I go into my explanation, I’ll let you know where I’m coming from… unlike these RU-vid content creators, I’m not a small landlord. Instead, I come from decades of working at the large national and statewide property management organizations. I’m noticing a lot of advice being given to small landlords that would never fly over at these big companies. Most of the small landlords are similar to what I call the “Bob’s auto sales” level. I come from the Toyota and Chrysler side of things if you will to large national management companies. Now with that said, you want to stay away from saying things like must have good credit, or must have good rental history. What the heck does good credit mean? Instead, you need to actually be specific as to what you’re looking for in the credit report or what type of things you’re looking for in the rental history. So for example, you need to be saying things such as “must not have been late on rent more than two times in the past 12 months”. That is objective and measurable having “good rental history“ is neither measurable nor objective and therefore puts for the image that you are evaluating applicants on a subjective means. So when I hear small landlords say “if they have a dirty car” … A “dirty car” is neither “objective” nor is it “measurable”. This again would indicate that the landlord is evaluating the applicant on “subjective” means and is just looking for trouble. When I hear landlords giving advice to other landlords, such as this, it raises red flags to me that this landlord doesn’t know what they’re doing. I cover things like this along with a whole bunch of other do’s and don’ts when it comes to processing applications. jppropertyconsulting.com.
Mandy, my wife and I are just about to shift from a property management company to handling the rental process ourselves. Your videos are a great source of reality-based information. Thank you!
love your videos! I have 48 units and your videos are more informative than bigger pockets. More helpful information in 3 of your videos than 25 BP videos. keep up the good work.
BP book called managing rental properties is gold. I'm not defending BP or taking credit away from Mandy, she is good. BP is my goto but I also branch out to see if anyone has other ideas, perspectives.
Good presentation and clarity Mandy. I really appreciate it as my wife and I are technically now Landlords/Property Investors. Every little bit counts.
You hit it, Mandy! Background check should be the PRIORITY of landlords. The worst part of skipping this step is getting your property be seized by the government if the tenant turns out to be a law violator. Civil forfeiture is real, and this may happen to any landlords if they do not take screening seriously. Drug-related and money-laundering related crimes conducted by tenants in your property may lead to civil forfeiture, and this will surely cost you lots of money to prove your innocence.
Google your state and rental agreement. There should be free (aka boiler plate or generic ones available in every starte. Your local "Realtors" association or your local real estate lawyer can help you get one as well. Also, EzLandlordForms has state specific forms and they commented above.
I give potential landlords references for my pets - One from my current landlord and one from my vet stating that the cat(s) have no pottying problems or destructive behaviors. That helps to demonstrate that I am a responsible pet owner and the pets are well-looked-after. I recommend the same to other pet owners.
That’s a really good idea! We stayed in an Airbnb once with our dog and the host added that she was really well behaved and did cause any problems in the review. I’ve always been really thankful that she did that Incase we travel with our dog again.
Great advice. Tenant screening, in my view, is the most important part of real estate investing with making sure the numbers work after getting bids prior to purchase of the property. I totally agree with your points especially on the ones regarding wanting to move in quickly and prior evictions. Being a new investor at the time I was nervous about having the house vacant while costing me money, so I was happy when someone wanted to move in within a week. I also believed the story from one about a prior eviction. It has come to burn me big time. Since then I have used a leasing agent to find me tenants. They have the time to do more thorough checks, no emotions are involved, and they just look at the hard facts. Those properties cashflow consistently. I may lease some myself now that I have learned a bit more, but one must be very skeptical.
Well yeah the money matters most because everything works on cash. She is just all about herself and taking advantage of poor people more often than not. Who would rent rather than own for themselves with rare exceptions. I can't blame her but still DAM* HER, FU*K HER SELFISH ASS!!!!!
@@EVNL576 the agent I used back then is no longer serving my area. Just an FYI, I used another agent for three tenants last year. I have had to evict two and possibly the third. It's important that you vet your agent as well. Some will just get someone in to get the fee. Some will help falsify documents. I'm about to start leasing myself again. I'd suggest if you want to do the same you watch some videos from Ernie the lawyer or join a good REI group like Lifestyles Unlimited. They have excellent training even at the basic level.
I always take a look inside their car. It doesn't matter if its older, but if its full of trash and a mess inside I never rent to people like that. They will treat your house the same way.
Many smokers, regardless of weather, smoke outside. Some smokers even think that smoking inside is nasty. One of my tenants had a pack of cigarettes on her counter. I told her it was a smoke free apartment. I’m hoping she’s smoking outside.
I'm always amazed at the applicants who ask if I would make an exception for their beautiful well-trained, well-behaved, above average dog, cat, bird when I've already listed that "Pets Are Not Allowed".
When I advertise I use the phrase "Absolutely No Pets". Once in a while I get that question, but adding the word "Absolutely" seems to have helped. I do sometimes get the calls about a service animal. More often than not, it's just a doctor's note that "little Johnny" is nervous and the animal helps keep him calm. That alone does not turn a pet into a service animal.
On the pet topic. I prefer to say "no pets", as simple as that. I'm surprised you didn't mention implementing a monthly pet fee or pet deposit...or combination. The property I just purchased already had tenants in place, one tenant was allowed 1 pet which was a chihuahua as per the lease. When I did the pre-settlement walk through. They had 2 chihuahuas, a pit bull, rabbit, guinea pig and numerous fly strips hanging from the ceiling Yeah...they won't be staying long.
Screening is so critical!! I've seen some people skip steps and face the consequences for it. You really want to be thorough. Dot those i's and cross those T's. Great video though thank you!
Great video! I’m about to buy my first rental property and I’m trying to learn as much as I can so I can make as least mistakes possible! I’m in NY and the laws changed so we can’t choose not to rent to someone based on their previous eviction history.
That's an awful law. Why would they protect people who have been evicted? That's the last thing that should be protected. Luckily you can still screen for income and credit, those factors would automatically rule out most people who have evictions on their records.
Brace yourself, if New York State passes the Good Cause Eviction legislation, it will bury many small landlords that have one or two rental properties. It will allow a problem tenant to remain on the property in perpetuity after the lease expires, unless you petition a court and get a judge's signed order.
But during cov, some people didn't pay and then got evicted. NY is the most tenant friendly. I wouldn't try to screen without an agent the first time especially now. They're better off buying in a neighboring state
@@ItsMandy An eviction shows on your record regardless of the outcome in court. Even if there was a misunderstanding and the case was dismissed, or you agreed on a settlement to the landlord's liking and were allowed to continue living there with no other problems. The only information future landlords see is that someone was taken to court. Simply being charged with a crime and actually being convicted are two different things. That's why it's unethical to automatically reject any applicant with an eviction or unlawful detainer on their record. It's not black and white.
I might add one: people who want to pay a year or more up front. In my state, your tenant could be the worst ever, but if the rent is paid, it is next to impossible to get them out. I don't need that much cash right away. I'm happy to get it every month. People who have that kind of cash laying around, but are NOT buying a place of their own, are sometimes into dirty stuff. I also NEVER accept a personal check as move-in rent and deposit. I take cashier's checks, because I know it will be good, and they have a record that they paid me. Win-win.
We rented a guy who pre paid 6 months. Worst renter ever. His dogs were aggressive and bit one of our neighbors. I had to hire a lawyer to evict him because the renters allowed the kids to keep letting the dogs out.
I was trying to rent in New Jersey in 2017. Landlords were taking deposits & fees like 50x more than they had units avail. Like a yr & a half out! I ended up leaving vs having my deposit forfeited. I mean a yr & a half out they call u. "Ur apartment is ready." Ur in a tent by then in another city or something 🐒
If they want to pay with a personal check, "Let's meet up at your bank" - cash the check there and then, and wire the money to yourself if you don't happen to have an account there.
I have and I do require that they tell me where they live and they agree that I can come through and do an inspection of the property. In one property, the daughter wanted to move in next door to her mother in a duplex of mine. I was reluctant but got the interior inspection and allowed her and her cat into my duplex, and after about 3 years I helped her and walked her through buying her own home Doing a walk-through inspection of a rental Can tell you whether you do want them or don't want them Your screening criteria is one thing that should be posted in multiple places inside of the unit in the window and on the back of the application if they don't sign that for me, that file is not considered your video is great
3 times the rent income is senseless. What if the tenant started making 3x the rent initially before moving in and lose their job months later… or what if they lied about other incomes.. where is the income going to come from to pay the rent when that happens? A good credit score/ history is all I need to know if the tenant is going to pay their bills or not. Not making 3x the income..
REFERENCE SCREENING !!!! .... beware, a landlord wanting their tenant gone will tell lies to you, lol. And tenants will set up fake references, friends who will lie.
My tenant had poor record of on time payment. I thought I would give them a chance, but they started paying late every month right after a few months they moved in while they bought 2 new cars during the time. It never charge them 10% late fee per contract. It has become later and later. I have not received half of previous month rent yet. People way of thinking can be hard to change.
I disagree with the previous landlord references part. There are lots of slum lords out there that lie and only care about money even though their place needs repairs.
@@Fanta....You can ask but the problem is verifying the information. It's not like you can call their place of employment and ask their boss how much they make without violating HIPPA laws.
I had to move out of the current apartment I was in because a cocaine dealer that was giving kickbacks to the current landlord threatened to have me murdered. However, I do agree that a tenant trying to pressure you into a decision is a red flag.
In talking about pets, you cannot refuse to rent to people who have service animals. Also, under the Fair Housing Act, emotional support animals are considered service animals. You also can't charge a per fee for them.
I took notes in case anyone wants it: discrimination 7 things cannot deny for: race, ethnicity, religion, age, familiy status, disability, citizenship status don't ask how many kids or ages DO ask: how many occupants living in unit keep standard, same contract every tenent fills out. questions are standard to avoid anything considered discrimination never consider anyone who hasn't filled out application, to protect yourself have list of your personal criteria, in case someone claims discrimination, point out list if they didn't meet criteria for tenent Red Flags if they do not have 3x income gross (I might raise this to 4x or whoever has the highest) if they smoke or vape, EVEN if they say only outside because winter is cold and they could lie. it stains walls do not have more than 3 pets (might use 2 instead), if they have more than that do not rent to them. younger than 6 months, they are not potty trained if they ever had an eviction, no exceptions bad rental history, no excuses, call old landlord and if they didn't pay rent on time and left place trashed, don't give them second chance if they need to move in immediately, same day as showing, shove money in your face. do not let anyone move in same day as showing they don't have money to pay deposit, they want to defer it and pay in increments with their rent monthly, or they want you to lower deposit amount. no exceptions for deposit, it's your security they will take care of property. if they don't pay deposit or very small deposit no incentive to take care of place. if they say ok half now, half next month you'll probably never see other half. they're basically asking you for a loan and if they couldn't get it from a best friend or mom or brother or sister why should you trust them , you don't even know them
Ask the tenant to see the last 6 months. Of rent receipt? From previous landlord. And make sure that tenant name is on the rent receipt. And not someone Else You could also call the local housing COURT. To check for previous Invictions at that address.
Great info. Keep it up. All info is good info esp your practical knowledge of how you dealt with various management issues. Can you explain how to do background checks, namely credit checks, criminals checks, etc. Thanks.
Can't screen for eviction history unless tenant sticks it through all the way to the end of the eviction process, most likely tenant will not...thus no eviction record.
Condos and the benefits and the negative examples expensive HOA fees monthly u don’t even see any work being done and they slam u with ridiculous assessment fees for 3 years and theirs nothing we can do . If lead I can’t be only one in this situation thanks in advance found u today randomly and honored to be here from miami , Florida
I understand where you are coming in this video,at the same time I once was that young potential renter with limited finances just trying to find my way in the real world.I needed someone to give me a chance to figure it out & thank god I did, I was really lucky,that 1st landlord not only took a chance on me by renting to someone with no rental history & allow me to pay the security deposit slowly over 6 months but she also ended up giving me a much better job than the one I had when I moved in.That was 40 years ago & I’ve never forgotten her kindness. I do my best to pay it forward & help others where I can,but that’s just me.
Hi there, I know landlords who do not perform tenant screening, as long as the tenant has the rent and advance. I also know landlords who perform thorough tenant screening before deciding on the right tenant, yet none of them have ever had any rental collection issues whatsoever, am I missing something valuable here? Can you please give me your thoughts, these are landlords who had no issues throughout the pandemic. Thanks for the great videos
It was just their lucky day if they didn't screen. This is the equivalent of playing Russian Roulette for landlord. 2nd it's too stupid to be a landlord. Screening tenants is the most important part of the professional landlord's job.
I agree with luis. Nobody plans to have an accident when they set out on their drive every day. but theyre sure glad they had the foresight to protect themselves with insurance when they run into bad luck.
@It's Mandy Thanks for the helpful points here. I'd like to know how you filter through properties to acquire. What do you look for and what are red flags that help you reach your final decision?
To add on to this: Are there any certain types of amenities that it should have, what locations work best (in a micro sense of the word), and any types of fixtures, flooring, electrical/water/gas systems that you avoid or desire? I realize this can be a complex topic and may be more content than for a single video.
Only thing I disagree with here is the same day move in. I was in a situation where I moved states and was staying with a friend and told him I'd find a place within 2 weeks and it had been almost a month of sleeping on his couch so I was desperate 😂 I still made over 25x rent and had great history just nothing was decent and available until I found my last rental before buying my house. Other than that, great info!! 😁
Then why didn’t you rent an airbnb or a long term hotel? Why move without even searching for apartments?!? That makes ZERO sense, the only case where it would is if someone was renting from a place where the landlord had an unfavorable situation, and wanted to move once their lease was up.
You do have the right to asked Pay stub if rent the Property. I know from my lawyer. You have the right to ask how people living the property. Some states have very Strict lives on the property. If the property has 4 people the family has 6, etc. Can't rent. Check for Eviction too.
So helpful, thank you! New sub here :) I am planning on renting out my first home so I've just been researching and your channel is great! For the people who applied but did not pass the criteria, do you let them know or just kinda leave it alone? Also these red flags, are they aware of them before filling out the application so they don't waste their time or....for when you mentioned that you can show them the list of things that they did not meet if they are claiming discrimination? Thank you in advance Mandy!
Thanks! Anyone who I have had direct contact with or have shown the house to I let them know that it has been rented. I also mark it rented/"sold" on the Facebook listing and on the Cozy app so that others will know. I put the red flags that make sense to add in the listing like no smoking or no pets, but generally the more you can add to the listing the better.
You sound really paranoid. Not that it matters but you inherit property from your parents? You sound way too young to have all these over the top requirements
@@ItsMandy do you add the red flags to the tenant lease? Also, do you use a website or provider for the tenant applications? And for the screening process?
Mandy you said that you will not rent to someone with an eviction. You cannot tell someone that had an eviction ten years ago that you will not rent to them you are setting yourself up for a lawsuit.
@@georgewagner7787 Why is that a frivolous lawsuit? Something that happen ten years ago to someone or would she not rent to black people who may have an eviction ten years ago?
Very nice . I need copy’s of your lease. Go over every line of your leases. Thanks. What about late fee. How do you get money after they leave and they trash your house? I need help!
I'm going through this right now too. Probably going to end up taking them to small claims court. In my state if I win, I can garnish their wages but not all states allow that. If they don't have a job or any assets, unfortunately you probably won't ever see any money from them.
What do you use to screen tenants? I'm a long term landlord, normally use property managers, but I have a home with a separate unit that I will rent out on my own this time. I agree with everything you said, especially when someone is practically throwing cash in your face and wanting to move in immediately, that's a huge red flag. Different than you suggested, I just wrote an add saying 'must have Covid vaccination cards and no kids under 12, and maximum 3 people, no pets, no smokers'.
It worked well for me. I had a renter throw $900 in my face and wanting to move in immediately but he backed out due to job problems. I kept the money because that's what lease said was going to happen.
@@crand20033 bragging about taking someone’s money and not giving it back after they just lost their job but didn’t even finish the process and move in yet is a pretty screwed up thing to do. Don’t you think?
@@jasonconcepcion4116 Not really, because I had to re-advertise my room and try to find someone else after waiting for this guy for a few weeks after he promised to move in. It could have worked the other way around where I waited for a few weeks for someone who promised to move in, gave me no money, then I was forced to re do my ad and wait again - - - and possibly again so I make nothing. A contract is a contract. It says you don't get the money back if you don't move in. Same thing happened to me when I went to buy a house, I put down $2000 earnest money and didn't buy it so lost it.
What I don't like is landlord will charge you the application fee and get to write off the expenses in relation to screening you so it's pure profit for them. There needs to be a law where landlords are forced to refund the application fee if they deny you the rental.
Question for the community...I have a friend that received a 30 day notice to vacate (after she submitted a complaint of possible mold in the apartment). She found a condo for rent and the new landlord wants to contact the current landlord as a reference but the current landlord refuse to assist the tenant. They have ceased ALL communication with the tenant. Is this legal? What other options does the tenant have in this situation? Any recommendations and suggestions are greatly appreciated!
Great info. Question Mandy are your properties long distance, if so how do you get the keys to tenant? Fedex? Lockbox with code that changes via wifi? A real estate agent? That was a good video BTW.
If you run a credit report through a “third party provider “. You may not charge them for the report. This is through the fair credit reporting act. If you charge them, you must provide them a copy of the report. Now, that said… be sure to check what your particular state’s law say that you are allowed to charge for an application fee. For example, I’m in Wisconsin.. here a landlord can only charge the applicant the “actual cost” of obtaining the consumer credit report (and it has to come directly from one of the “big three” agencies-TransUnion, Equifax or Experian) . And this charge cannot exceed $25 (again, here in WI) …. Most landlords here misinterpret this and think that if they use a “third party” application processing company (such as AppFolio, Rent Prep, etc.) and charge the applicant for $25 of the cost of having AppFolio process the application-which is NOT in accordance with state law. Now, that said, I don’t recommend using those third party services anyway, because they typically don’t have as thorough of a screening process as they should. I come from decades of working at the large national and statewide Property Management organizations, where we teach our leasing agents proper ways to do things. Many of these RU-vid advice channels are simply small landlords giving advice to other small landlords. I teach landlords the business practices that are used at ghettos large organizations.
Hey Mandy! What do you think about using a comprehensive software, like DoorLoop or Zenplace, to do tenant screening as part of a bigger application process?
