Hi Friends,

As promised, Jeffery Taylor, has provided us with another quality landlord tip. Jeffery is the nations foremost expert on landlording and when he speaks, people listen.

WHAT TENANTS SHOULD BRING WHEN SEEING YOUR PROPERTY
Once you’ve decided how you’re going to show the house, you need to make sure the prospect meets you at the rental with as much of their needed information as possible. You don’t want to make unnecessary trips showing the property if you can help it, and having all needed paperwork and information required by you at time of the showing will go a long way toward preventing these extra trips.

When you have the prospect on the phone, either from your initial interview or when you call back to schedule to a showing, you need to tell him or her this: “I’m going to ask you to bring some things when you come to see the unit. Please grab a pen and paper and write down the following…”

Tell them you’ll need three personal references from each adult who will sign the lease, including names and phone numbers. (I want to speak to at least two references, so I always ask for three. Parents and grandparents don’t count.)

Ask them to bring the following:

* Past landlord’s names, addresses, and phone numbers.

* Copy of their Social Security number or card

* Copy of current driver’s license or photo ID

* Recent pay stubs (I recommend asking for two months’ worth.)

* Solid verification of other income source, such as alimony check stubs, regular pension, or government support check stubs, and so forth. (You want concrete proof that they have solid, reliable income. Have them show you proof that they have solid, reliable income. Have them show you proof for at least two recent, consecutive months. This is a must, because you don’t want to be chasing government agencies on the phone trying to verify this.)

* If self-employed, a copy of last two years’ tax returns and three to six months of bank statements.

* One or two current utility bills with their present address on it (optional).

* One other source of ID or credit card (optional)

* Bank name and phone number (You might want this to verify they have an active account. This may also be optional. Some landlords want bank account numbers, but with the increased identifying theft, tenant prospects are more reluctant to give that out. I don’t blame them. I wouldn’t give out any account information, either, but you can ask.)

* Cash for their credit check.

* Any other bits of information you require that are not mentioned here.

* Last but not least, let prospective tenants know they will need all adult parties present who will be occupying the rental. Also let them know to plan for at least 30 minutes for the showing and to fill out paperwork if they like the rental.

Once this list is given and verified as understood by the prospect, set the appointment time. Give precise directions, including north, south, east, and west, notable streets, and easy-to-locate landmarks on how to get there. Remember that not all people are good with compass-type of directions, so include left and right turns, number of stoplights or signs, and approximate mileage between these streets and landmarks. If you can’t do this properly, drive to your rental from all possible directions and write a complete set of directions down. (You could get your directions off MapQuest, although it may not have the designated landmarks.) You should keep this set of directions in your file of paperwork on that rental so you have them for future reference. Don’t lose a great prospect because you gave poor directions.

Before you end the call, again give prospects a precise meeting time and your cell phone number. Have them repeat what they need to bring, the complete directions, the time of your appointment, and your cell number. Ask them to call you 30 minutes ahead of their scheduled time (or whatever time you need before you leave your house) to confirm that they will still be on time. Also, be sure to thank them for their time. Unless you live within walking distance of the rental, use these techniques. You’ll be glad you did.

CELL PHONES AND RENTAL APPLICANTS
In today’s society, 30 to 50% of rental applicants only have cell phones and do not have traditional land lines. Therefore, specifically ask for cell phone numbers on your rental applications.

RENT PAYMENT ALLOCATION CLAUSE
For most states, landlords are highly encouraged to consider including a rent payment allocation clause in your lease. This is especially helpful if you do NOT have rent collected automatically. The rent allocation clause informs residents that money paid to you each month is first allocated toward any unpaid late charges or fees and then allocated toward rent. That way those charges or fees are never carried over to the next month and left unpaid. Equally important, if you ever have to take the resident to court for money due, it is NOT for unpaid charges (which some judges won’t grant) you are taking them to court for RENT only.

ALERT – MORE CHILDREN MAY BE COMING WITH THIS ECONOMY, MORE CHILD CARE BUSINESSES ARE POPPING UP IN RENTALS.
In the comings months, do not be surprised if you discover a resident babysiting other people’s children in order to generate extra income. Why should that be a concern to landlords? Landlords on MrLandlord.com warned that you should be concerned about the following:

1. increased wear and tear

2. lots of traffic and noise, neighbors may not like it

3. may violate city zoning codes

4. Liability is the biggest concern.

Child care is a business. The landlord with the deep pockets, could be held liable for the child care providers’ negligence. Child gets hurt, who pays. Parent trips walking up to house or in house, who pays. Child care provider is accused of molesting child, who pays. Child care provider is accused of harming the child, through disciplinary action or negligence, who pays.

One landlord advised that if the tenant starts doing this against your wishes, that the tenant should be asked to relocate. And that may hold true in almost every state except for example California where you can’t evict a resident simply because they start a small daycare center in your rental. However, you should still be concerned and know the limits to the residents’ rights. And in every state you should know your rights in regard to what residents can do in your rentals.

WARNING – RENOVATION PAMPHLET AND DISCLOSURE FORM REQUIREMENT
A person who works within the government with the health department, sent me
an email today and just wanted me to remind landlords of the following (which many landlords are still not aware of):

Before starting a renovation in residential buildings built before 1978, landlords
or the contractor is required to have tenants sign a pre-renovation disclosure form, which indicates that the tenant received the Renovate Right lead hazard information pamphlet. Both the pamphlet and the disclosure form can be downloaded for free from the EPA website: http://www.epa.gov/lead/pubs

These tips are shared on MrLandlord.com website and in the Mr. Landlord newsletter from website contributors, Jeffrey Taylor (founder) and real estate authors featured on the site. To receive a free sample of the Mr. Landlord newsletter, visit his informative website at MrLandlord.com, and learn how you can receive a free landlording book.

Hope this helps…THANKS JEFFERY FOR ANOTHER GREAT NEWSLETTER.

From The Heart,

Dwan Bent-Twyford

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