Finding Tenants Fast

Krista and Seamus dive into the process of finding tenants for their rental property. Seamus outlines the efficient timeline from discovering the property on July 3rd, facilitated by recognizing the face of the real estate agent, to securing it under contract the next morning. They emphasize the importance of utilizing publicly available information and incorporating contingencies for thorough investigation, such as assessing the Homeowners’ Association (HOA), into the closing process.

The rapid acquisition of the property, described as equivalent to a cash offer, allowed them to close within 16 days. Anticipating the need for tenants, they pre-emptively listed the property on TurboTenant, leveraging the platform’s rent estimate calculator and the images they already had. This proactive approach ensured they had potential tenants lined up by the time they officially owned the property, showcasing a streamlined and effective method for tenant acquisition.

Tenant Selection Strategy

In their process of finding tenants, Krista and Seamus decided to list their rental property at the higher end of local rents for two main reasons: to enhance the property’s cash flow and to attract applicants with a solid source of income. This strategic pricing helped them draw in a specific tenant demographic, ensuring a better match between the property and potential renters. They found that being explicit about their renter criteria in the property description was particularly effective. It led to applicants self-selecting based on whether they met these criteria, streamlining the screening process without compromising on the quality of tenants. This approach not only slowed down the process slightly but proved to be a valuable tactic in attracting the right applicants.

Pros and Cons of the Pre-Screener

The pre-screener tool proved invaluable for Krista and Seamus in managing the influx of leads while juggling the closing of their new property. This step allowed them to efficiently sift through potential tenants, ensuring they only spent time on applicants who were a good match for their property. By requiring every interested party to complete the pre-screener before scheduling a showing, they streamlined the process, focusing their efforts on serious candidates. This approach not only saved them time but also enhanced the overall efficiency of finding the right tenant, demonstrating the importance of qualifying leads early in the rental process.

Pet Policy Decisions

So another question that pops up often with our landlords is whether or not to accept pets. What did you decide with that?

Yeah, so we went back and forth a lot around that. I know from a statistics standpoint, the majority of renters have pets, right? And so what we decided is to first start without pets, but be flexible on it.

The one thing we really liked about this property is it had hardwood floors throughout. So there were no carpets that could really do some serious damage to. And so our thought process was we start with no pets. If we’re not happy with the lead volume or the options that we have, we can always add on pets afterwards.

It turns out that those interested didn’t have pets and the renters that are current tenants, the individual we end up filling it with, weren’t looking for a property with pets anyways. So it was kind of a win-win from that standpoint.

I’m glad we took that approach. First, we are also very willing to be patient and wait. There wasn’t a high amount of urgency for us. And so we allowed it to be listed for a little bit longer knowing that we were going to restrict our options a little bit by not having pets.

Security Deposits and Move-In Arrangements

Krista and Seamus’s approach to filling their rental property provides valuable insights for landlords on flexibility and strategic planning. By starting the marketing process before closing, they positioned themselves to be selective in tenant choice, leveraging the higher rent as a tool to attract financially stable applicants. They also remained open to adjusting key variables, such as rent price and pet policies, to enhance the property’s appeal if needed.

The decision to set the security deposit at one month’s rent, and then reduce it for tenants with cosigners, showcases a balanced approach to risk management. Assessing the tenants’ and cosigners’ backgrounds provided them the confidence to lower the deposit slightly, acknowledging both the property’s condition and the financial security offered by the cosigners.

The move-in process was uniquely managed due to the timing with the 4th of July parade. Despite the unusual circumstances, Krista ensured a smooth transition for the tenants by providing them with keys and completing the inspection afterwards. This not only allowed the tenants to start moving in according to their schedule but also gave Krista a chance to observe the tenants’ setup within the apartment, further establishing a good landlord-tenant relationship from the start.

This detailed account emphasizes the importance of adaptability, thorough tenant screening, and clear communication in successful property management. It illustrates that being prepared and proactive, while also willing to adjust strategies as circumstances evolve, can lead to a beneficial outcome for both landlords and tenants.

Setting Up a Positive Relationship With Tenants

Krista and Seamus emphasize the importance of a detailed move-in inspection process, akin to renting a car, where tenants are encouraged to identify any pre-existing issues. This approach not only protects the tenants from being held liable for damages they didn’t cause but also strengthens the landlord-tenant relationship by demonstrating the landlord’s commitment to fairness and transparency. Conducting the inspection together with the tenants further reinforces this, ensuring they understand the landlord’s genuine interest in protecting their security deposit.

Moreover, Krista’s additional efforts to prepare the property for the tenants—such as turning on the air conditioning, upgrading the thermostat, replacing an old toilet seat, and providing essential supplies like toilet paper, paper towels, and cleaning products—go beyond basic requirements. These thoughtful gestures not only enhance the tenants’ move-in experience but also subtly encourage them to maintain the property’s cleanliness and condition.

These practices suggest that small, considerate actions can significantly impact establishing a positive and respectful landlord-tenant relationship from the start. By investing in these initial steps, landlords can set a cooperative and communicative tone for the tenancy, potentially leading to smoother management and more satisfactory experiences for both parties.

Landlord Tips From Experience

Krista and Seamus wrap up their discussion by emphasizing the importance of due diligence, particularly when dealing with Homeowners Associations (HOAs). Seamus shares his realization of the impact HOAs can have on the financial viability of a rental investment, highlighting it as an essential area for research and understanding due to the potential for significant, often overlooked expenses. This insight is particularly relevant in areas like Colorado, where HOAs are common, underscoring the necessity for landlords to fully grasp all aspects of their investment, including those that might not be immediately apparent.

Additionally, Seamus touches on the value of preparing a property for new tenants with thoughtful gestures. He suggests that landlords consider what they would appreciate if they were moving into a property and act accordingly. This approach, he notes, can foster a strong landlord-tenant relationship from the outset. Simple, inexpensive actions, like ensuring the property is clean and stocked with basic necessities, can significantly impact tenants’ satisfaction and perception of their landlord.

The conversation concludes with an invitation for feedback from the audience, encouraging the sharing of different perspectives and experiences. This open-ended closure reflects the dynamic nature of property management and the continuous learning process it entails for landlords at all levels of experience.

Key Takeaways

• Swift Property Acquisition: Seamus and his wife found and put a property under contract within a day of viewing it, emphasizing the importance of acting quickly in real estate transactions. They were able to insert contingencies for due diligence into the closing agreement, such as investigating the homeowners’ association (HOA).
• Strategic Tenant Search: They listed their rental on TurboTenant right before closing, opting for a higher rental price to attract tenants with stable incomes and to enhance cash flow prospects. The property’s high-end listing also served as a filter for potential tenants.
• Effective Screening Process: Implementing a pre-screener for all potential tenants ensured that only serious and qualified individuals were considered, saving time and effort. This tool was pivotal in managing multiple leads and improving the efficiency of the tenant selection process.
• Consideration of Pets: Initially, pets were not allowed in order to maintain the quality of the hardwood floors. However, there was flexibility in the policy, such that if acceptable leads were not found, the policy on pets could be reconsidered.
• Initial Tenant Relationship: Taking extra steps, such as upgrading fixtures and providing initial cleaning supplies, facilitated a positive start to the landlord-tenant relationship. Additionally, conducting a thorough move-in inspection with the tenant proved beneficial for setting clear expectations and accountability.