Ideas to obtain a reliable tenant

[flavor]

Hi. We want to rent out our house and we're not sure how to go about it.
What should we do to get a reliable tenant. How can we do a background check, varify employment and bank accounts, how much for a security deposit, etc.

We live in IL.

Any help would be appreciated.

[disneysteve]

I would speak to a local realtor. They can probably handle all of that for you for a reasonable fee.

[snafu]

We've asked prospective tennants to bring a letter from employer, on letterhead, verifying position, start date and generalization on annual income. These are mostly from HR department so I also request a letter from immediate superior. Letter from their primary bank's loan officer on official stationary confirming the a/c functions in satisfactory manner since X [starting date]. We call past three landlords and ask if they paid according to lease, had any issues, any complaints from neighbors or police. I also ask and call three people whose names have been offered as reference.

I have the tennant sign an important looking lease but I know full well it isn't really worth the paper it was written on if the lessee is a jerk. I am super careful because I pay the utilities and charge less than other housing on my street.

[momof1in150]

I agree with Steve about talking to a REALTOR. They can screen potential tenants and have the resources to get it done more quickly. For a year's lease we charge 8% of the total lease.

[simpleyme]

we use a property manager

when we first started we used a small local one,big mistake
we next used the largest one great idea! all the local deadbeats that do not pay rent are in their data base and they will not rent to them , when people ask if my houses are for rent I tell them to call The company and they frown and say "they wont rent to me, "

check rental references not just the last place but from the place before,their current landlord may be desperate to get rid of them and wont tell you they do not pay rent

good luck ,I like the property manager as I really want my rent and do not have to worry about hearing hard luck stories and excuses

just a sidenote ,make sure anyhouse you use as a rental is affordable to you so much so that you can go 6 months without a tenant and it will not harm you,if not I would sell it

[flavor]

Thank you all for your replies.

We did contact a realestate leasing agent that is familiar with our area, and she'll come by this week to see our house. I like the idea of keeping a data base info of tenants, but how can we find a good leasing agent?

Our house is paid off, no mortgage, and we'll be renting it because we're purchasing a new one. We'll be putting down between 20-30%, and the mortgage will be completelly covered by the rent.

[Seeker]

Originally Posted by flavor

Our house is paid off, no mortgage, and we'll be renting it because we're purchasing a new one. We'll be putting down between 20-30%, and the mortgage will be completelly covered by the rent.

Hopefully, you also have other means to pay your mortgage, because there may be times that your rental is empty.

Life happens, regardless of anyone's "reliability."

[Shewillbemine]

Easy, practical clause: don't lock renters down into yearly contracts. By signing them into a "monthly contract" you reserve the right to kick them out if you have to. And when you find good tenants, treat them well!

[PetMom]

Also a caveat: do not rent to friends or friends of friends or the worst: distant relatives.

Even if they appear to be paying their rent at their old place you would be surprised how quickly they try to pay you all their hard luck stories
and excuses.

check your eviction laws in you state.

Also photograph your property inside and out to show what it looks like and the current condition and when they leave you have a record of the condition of the property or any malicious damagtes done.

[cicy33]

Originally Posted by flavor

Hi. We want to rent out our house and we're not sure how to go about it.
What should we do to get a reliable tenant. How can we do a background check, varify employment and bank accounts, how much for a security deposit, etc.

We live in IL.

Any help would be appreciated.

Just to give you an idea of what we did. We paid the same amount for deposit as we did for a month of rent. We did provide employment info but other than that not much. My bank accounts are nobody's business. That is one area you cannot get into. Background check I did not have done. It also depends on where you live. I do agree, keep the lease less than one year. People's lives change. i think background check just verifies one is who one is. It is not someone's credit report. I rented a house a few years ago and the landlady said something that really stuck with me. We were discussing the amount of the rent and she said that she wanted to charge an amount that would keep out the "trash" but not so much that one couldn't pay the rent the following month. I would suggest though to draw up a written lease if you do it yourself. you want to protect yourself.