Security Deposits, Screening Applicants, Showings, Systems
Security Deposits – this is always tricky. I was just speaking with someone yesterday that was having a problem with the parent of a student they rent to and I asked how much was the security deposit – there was none! I also recently picked up a 4-plex to rent and 1 of the units had never paid a security deposit. The law states you can collect 2 times the rent for an unfurnished property and 3 times the rent for a furnished property. In my business our standard is 1.5 times the rent. If you accept pets you will want to collect extra towards the total security deposit. Don’t call the money for the pet a pet deposit because that is all you will have available to you in the event of damages. If you put the extra amount for the pet toward the total deposit then you have the total deposit available to you if there are damages.
If there are roommates and one moves out I do not get involved in partial return of security deposits. I rent a house not rooms. I only return the total deposit when everyone moves out. Remaining roommates are responsible for partial disposition of deposits.
Screening Applicants – do your due diligence and verify everything on the rental application including prior landlord not just current one. Same with employers. Check credit, pay stubs, bank accounts everything. When screening ask open ended questions such as: “how do you know this person?’ Ask lots of questions. If they are vague keep probing they aren’t lying they just aren’t telling you everything so ask and listen. Listen closely to answers from the references. What are they not saying? If students who don’t have credit or much in the way of references ask to see school transcripts – what is their GPA (grade point average) are they a good student or not? Ask for teachers or coaches as references. Ask for a resume so to speak. Interview their parents to find out if they paid rent while at home etc. If seniors who often pay with cash check bank accounts and social security benefits. Bottom-line, you have to spend time checking all the info that is on the application or getting more supporting info to satisfy that they will be responsible paying tenants.
Showings – screen over the phone first, ask if they did a drive-by, ask them to view photos on line. Once you have screened over the phone set a time for a showing. You set the time, don’t let them jerk you all over the place. If they are serious they will make the time you set. I got tired of no shows and 1 hour of time wasted waiting. So, now I tell everyone THEY need to call 1 hour prior to the showing to RECONFIRM that they will be at the property otherwise I don’t show up. This has worked really well for me.
For safety reasons - never show once it is dark outside. Never go into the property with the person behind you. Get to the property early, turn on lights, open blinds and be inside waiting for the person. If the property is remote never show alone. Always take someone with you. I don’t do open houses. I show a property for 15-20 minutes by appointment only. That is all the time that is necessary for someone to decide if they want to apply. If the person that shows asks right off the bat if you will take less – I always say NO. They need to apply and if a strong applicant you might consider it.
Better yet just say you are the property manager don’t say you are the owner. When I show properties I never say I am the owner of the business. I don’t even say I am the property manager I have my name badge and that is it. For all they know I am the receptionist. This allows me to observe them, their behavior such as do they take their shoes off before entering the house, do the kids run screaming through the house slamming doors and the parents are oblivious?
Systems – I have talked about this before. You want to have your procedures and systems in place. Your filing system, banking system, maintenance system, tenant communication system. If you have a system in place then when things come up you know how to handle them without getting stressed and agitated at the tenant.
Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.
Kathleen Richards
