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After Being Approved For a Rental Property, What Next?

After Being Approved For a Rental Property, What Next?

Once your rental property application is approved, you should be ready for greater responsibilities ahead. With the tips here you can manage to enjoy your rental property in the end.

1. Rent out the property

Once you have the approval, you are just about to get started making some rental income. Advertise your offer in the real estate hubs, or even in the local dailies classified sections. 

2. Ask your tenants to pay bond

Usually, your tenants should pay the bond as it acts as security for potential damages that your tenant may cause during their tenancy. It is also used to cater for rent that the tenant may fail to pay. Your tenants should deposit the bond into a trust account in a record of 14 days. This bond is usually released once their tenancy period is over. 

3. Screen your tenants

After all the hassle that comes with seeking approval as a property owner, the last thing that you need is a stubborn tenant. Screen each one of them rigorously by shooting a few pre-screening questions. This is the only way to ensure that you are only renting your property to the best tenant. 

4. See  the money

Some tenants will want to have a 6-month lease and in this case, you might want to see the money upfront. It is not selfish, it is being careful. Seal the deal after the tenant pays a deposit depending on the number of months he intends to rent the property or as per the agreement. 

5. Get rid of the middlemen

It is understandable that you might be busy running other errands, but for the sake of tenants, slash down the middlemen. Most tenants look at it as a deterrent because the more the red tape, the more complicated it becomes to get a lease. Be an approachable property owner and try to negotiate an accessible lease, especially if you are starting out. 

6. Get recommendation letters

Your tenants should be able to produce at least two letters of recommendation from their former property owner or from their employer. Their credit score would come in handy too. The clients should be able to prove that they are in a position to pay rent in good time as per the agreement. Most property owners prefer that tenants pay rent simply through an automatic transfer. 

You can advise your potential tenants to insure their rent in lieu of their family members or friends. Most landlords will consider this when weighing their options with would-be tenants. 

Here are some Red Flags that you should look for as a landlord:

• Credit unworthiness

A tenant who is credit unworthy will not respect you enough to pay his dues in time. Gaps in residence history should also ring an alarm to any property owner.

• Notorious debt history

A tenant that has a wanting debt history means that they have poor financial skills and you might want to go slow on permitting them to rent your property. 

• Poor first payment

The first payment should tell a lot about a tenant. If he pays poorly on the first month, you have reasons to be afraid. 

• Criminal records

Contrary to popular belief, criminal activity is not exactly a guarded secret. The Fair Housing Laws gives a nod to property owners to conduct a thorough criminal record search on a tenant.

Once you get the rental property approval, you are halfway to start making an income. However, that can be accomplished only if you keenly play by the rules.

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