Create an Advertisement for Your Rental Property
by Attorney Janet Portman
Setting out your basic rental terms is your first step to finding great tenants.
Finding and choosing tenants is the most critical decision any landlord makes, and to do it well you need a reliable system. Savvy landlords follow specific steps to maximize their chances of selecting tenants who will pay their rent on time, keep their rentals in good condition, and not cause any legal or practical problems later.
Your first step is to define all of the terms of the rental so that you can properly advertise the space.
Determine Your Basic Rental Terms
Before you advertise your property for rent, make a number of basic decisions -- including how much rent to charge, whether to offer a fixed-term lease or a month-to-month tenancy, how many tenants can occupy the rental unit, how big a security deposit to require, and whether you'll allow pets. Making these important decisions should dovetail with creating your lease or rental agreement.
Amount of rent. There's only one rent you should charge for any rental -- the market rent, or slightly below. No matter what your carrying costs are for this property, or the return you'd like to see, you won't see any return unless you have a tenant. Tenants know the market and you'll simply waste time with an unoccupied unit if you set an above-market rent.
Lease or month to month? Decide whether you want a fixed-term lease (typically for a year), or a month-to-month rental agreement. If the market is soft, you may want the assurance of knowing your tenants will be tied in for a year. On the other hand, if you want the ability to raise the rent (with the right amount of notice, of course), you may want a month-to-month agreement.
How many tenants?
Decide how many people may occupy your rental, taking into consideration the physical layout, such as the number of bedrooms. As a general rule of thumb, allow two persons per bedroom, but in some states, you may need to allow one more tenant.
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