Tenant Screening My First Rental Real Estate Investing 2019
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Tenant Screening My First Rental Real Estate Investing 2019


in today’s video I’m gonna give you my
tips and tricks on how to avoid nightmare tenants and how to properly
screen potential tenants welcome back to the channel guys my name is Bruce Wang
I’m a real estate investor dividend collector just turned youtuber and I’ve
been requested many times on this video how do i screen tenants a lot of you
guys are just beginning your investment journey that could be into real estate
that could be into dividend stocks and you guys are just looking for someone to
guide you and you know some tips from someone who’s on the other side of real
estate investing so that’s gonna be this video I’m gonna give you some of my tips
and tricks on how I got started with real estate investing and screening
tenants so if you guys want to learn how I started real estate investing you guys
can go check out the card here and watch some of my older videos but in today’s
video I’m gonna give you some of my experience on how I started with
screening tenants and the first way or the first time that I ever screen a
tenant it wasn’t me that actually screened a tenant I actually hired a
real estate agent to help me find a tenant for my one of my properties and
this specific property is actually one of the properties that I manage I take
care of the maintenance I take care of everything else
but screening tenants was something that was kind of new to me and I was having a
hard time with referrals from friends and family so I actually had to find
someone that I did not know completely no third party whatsoever so I hired a
real estate agent to do this for me I think the company was layer but there’s
a lot of real estate agencies out there that are very popular and most of them
have a leasing department that does this for you so to give you an example of
some of the companies out there that you can go to there’s gonna be Remax century
21 Coldwell Banker Keller Williams or you can go to a local brokerage in your
area and they will most likely have a leasing department so this person will
go to your property get all the details of the rental start taking photos of the
place maybe they will hire a photographer if they’re actually like a
luxury type of place but typically I think they’ll have just like a point
shoot camera after that they would list your property
on their websites and they’ll start getting traffic for all of the people
that in your area that’s looking for a place to rent just a disclaimer this
person is not working for free they’re gonna be collecting typically the first
month’s rent that’s how much they usually charge if you’re going to a
professional property management company they might be able to do this too and
they will typically take the first months to rent as well so I just want to
let you guys know that is not free they’re not doing work for you for free
these guys do a lot of work for you they’re gonna be showing your property
to a lot of potential tenants they’re gonna be running a credit check they’ll
be doing a background check and this is all the typical stuff that you would
want someone to do and depending on your market you’ll either have a lot of
tenants to choose from or you will have a few 10s to choose from and these guys
will recommend the best potential candidate but it’ll be ultimately on you
to decide who you want to live in your property so I’m managing a single-family
house I think it was like two-bedroom one-bath and I was having a very
difficult time finding tenants so that’s why I hired a leasing agent to help me
and this person did a lot of work I think they it took them about three
weeks to four weeks to find a really good tenant to put in there I remember
very specifically that there was this one person that she showed the house to
and she was talking with this potential tenant and they told them that and they
told my my leasing agent that they like to play with fire and stuff like that is
a gigantic red flag for your properties you don’t want anyone that likes to play
with fire of renting out your so they recommended that I do not rent to these
guys even though stuff like that they’re not gonna be putting it on your rental
application this is something that you’ll only find out if you go to the
showings and stuff like that so during that time I did not have a lot of hours
in my day to go show potential tenants and and that’s why I thought it was well
worth it that um this leasing agent really helped me out big time
so this leasing agent was recommended to me by a family member and she did a
really good job and you know I asked her a lot of questions about the legal
process how to not discriminate and that is really important you have to
really look out for your fair housing laws to make sure that you’re not
discriminating against you know age race nationality disability and all that that
is really important when you’re gonna be screening tenants yourself
so once I’ve built up some confidence from you know talking to her doing my
own research online I decided that I wanted to you know save some money you
know first month’s rent that could be like up to $2,000 for some people out
there so that is a lot of money and yeah I want to save that for myself so if you
guys didn’t know I own a duplex that’s been completely renovated the first unit
I was actually referred to by a friend and this person was my first tenant the
second tenant that I have I actually screened that person myself and I did
that all through Zillow and this is a this is a video of the property when it
was during the renovation process I I did new siding new roof so this place
looks amazing compared to how it used to look before and I did a fully I fully
renovated inside as well so there’s not gonna be that many issues on the inside
for with stuff breaking down but you never know when it’s rental properties
you’re not the one living in there taking care of the place it’s always
gonna be somebody else and you never know how they’re gonna take care of your
place so for my property I did all of my screening on Zillow Zillow is not only
just a place where you can look at your friend’s house price but it’s actually a
place that you can go to to place your listing for free and they give you a lot
of resources that is very helpful for screening tenants so all you have to do
is go onto the Zillow website sign up for our count completely free so when
you’re in Zillow you want to go into the rent section and this is where all your
information that you need is you want to go into the I am your rent manager my
listings list a rental received applications rent payments I collect all
my rent payments on Zillow and that is really helpful you don’t want to try to
collect cash you’re gonna have a lot of issues if you’re collecting cash so try
to collect payments online Zillow rental manager and if you’re a renter you want
to go to this section but here we go you want to list a rental so
I have my properties here listed I’m obviously gonna not show you the
addresses and everything so these are my two units one of them is rented out the
other one is not rented out yet but I’m currently taking applications and that’s
why I decided to do this video because I’m actually going through the rental
prescribing process again so I want to you know make sure I have all my bases
covered before I accept that application but basically you want to go into your
resources and here is all the landlording basics that you need to know
all of this is so useful I cannot recommend it anymore how to run a credit
check a guy to becoming a landlord how to manage your rental property rents
receive template all this stuff you can download all the templates you can
download all the notices that you might need on here when it comes to the tools
and forms I’m pretty sure that I downloaded almost everything that I
could download from this section so I’ll list this website if you guys are
interested in you know screening your own tenants and if you guys want me to
go through Zillow and you know go through the listing process and
everything that I’ve required for my tenants and stuff like that
just let me know in the comments down below and don’t forget to leave me a
like as well for giving you all this valuable information so going through
the tenant screening finding a great renter these are the basics that you
would need to know make sure you read this section first it’s basically gonna
be all the laws and all that stuff that you want to read this you do not want to
discriminate against somebody because they can come back to bite you on the
and you definitely don’t want a lawsuit before you start your investing career
that hope is so unfortunate if that actually happens so I recommend first
use someone use a professional first and after you get more confident you can do
start doing it yourself pre-qualifying tenants at first contact so after I did
my listing all of these people started you know wanting to see the place and
stuff like that so I’m not just gonna show everybody that wants to see my
property just like that that’s why I take really nice phone
and I only want to show my property to anyone that has potential to rent it out
so on my listing you know I list everything about my property first floor
unit eat-in kitchen living room one full bathroom square footage this is all the
stuff that a tenant needs to know especially what you do not want a tenant
to have so two off street parking that’s really important to a lot of tenants as
well basement storage so I do not allow pets in my property and that’s because
pets are very difficult to deal with especially if you have like a gigantic
dog you know they might pee in the house they might mess up you know walls
scratched up the walls and stuff like that especially if a tenant does not
take care of the the pets as that well that could lead to a lot of big problems
so for me I just rather not deal with it I know there’s a lot of other places
that are pet friendly and they charge a pet fee but that’s something that I
don’t want to deal with so I do not allow pets in my house another
requirement for my property is no smoking I don’t want to deal with the
smells and all the stains on the walls and on the ceilings that I have to clean
up after and these are some of the bigger requirements that I have that I’m
kind of flexible but not really I have to make sure the potential tenant has a
really good credit score anything above you know 650 and higher that’s already
good and anything over 700 that’s great so I rather have 700 plus is better but
650 is gonna be where my limit is that people with low credit scores are most
likely not gonna be able to pay you back because they can’t even pay back for
some of the stuff that they buy on credit
I require like first of the month last of the month and a security deposit and
income to ratio three times the rent that’s also really important as well and
I only showed my place by appointment and I require everyone to take the
application that is one way that I prequalify all my tenants after that
after that I make my tenants fill out an application and if everything else looks
good then I start doing the showing so the steps here one two three four five
six I do them in a little bit of a different type of order but but so far
with my track record I’m doing all right so I’m just gonna stick with my process
until it doesn’t work anymore basically so when so when I make my potential
tenants fill out the application on Zillow Zillow runs a credit check on the
person they also run a background check on the person and they also make the
person list out you know past residences and where they work so all this stuff
all of this information is very accessible and I can do all of my you
know verifying work after I get the application back so I check the
references I call the I call the old landlord I called where they lived
before you know talk to the landlord ask him some questions
I talked to where they’re employed I asked him does this person make such and
such amount every single month depending on where they’re employed they might
tell you they might not tell you I’m so you might have to do some extra
verifying where you collect pay stubs and that’s one way that I’ve verified my
tenants as well so Zillow also runs a credit check on the tenant and this is
where you can see a lot of great information
are they on time with their payments how much debt did it have how much did they
have to pay every single month in krit like in credit how much credit uses they
have if it’s really high if it’s really low and and all that good stuff it’s all
there and it’s really useful credit is in this day and age I think the credit
score is gonna be one of the top main factors of screening tenants after you
do this screening process hopefully you’ll have a lot of tenants to choose
from and you choose the most highly qualified one and if there are multiple
tenants that are qualified one way to do it without discriminating is do a
first-come first-serve type of basis and you just pick the first qualified tenant
to live in your place so everything that I just went through with you in this
video is going to be all here on the website and I’ll be leaving this link in
the description down below and like I was saying before if you guys want me to
do like an in-depth analysis of you know how to list your property on Zillow just
let me know in descriptions down below I think this is gonna be really useful to
any budding to anybody that is a like a budding real estate investor out there
Zillow is definitely going to be one of the best ways to go if you want to see
more real estate videos or more dividend investing videos go check out my older
videos that I made here don’t forget to leave me a like and subscribe to the
channel if you haven’t subscribed already hit the notification to know
when I send a next new video out I love your 3000 I’ll see you guys in the next
one bye bye

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