AVA Insurance Group & Auto Tags Blog
For those who have the privilege of possessing more than one living space, they have the option to rent out the spare unit. The passive income is great since it seems like you don't do anything yet you get paid on a periodic basis. But when you do, you need to be a little more selective.
Here are some tips on how you can be selective when renting.
Make Sure Renter Has the Capacity to Pay
The first thing to consider is whether the person who wants to rent even can pay!
While a credit check is in order, this could be invasive and embarrassing because the credit report will reveal other retail that the potential renter might be loathed to disclose. Elect for a middle of the road solution by asking from proof of income and maybe a reference or two from former landlords.
The first gives proof that the renter can make rent, while the second will provide insight into the person's actions in the previous place he rented.
Get ID for Any Co-Signers / Co-Renters
Most young people know that they lack the credit history to make for attractive renters. So, they get a parent or a more financially stable adult friend to co-sign the lease. The same young people cannot afford to pay a lease on their own, so they will get their friends to live with them.
In either case, you want to make sure that the co-signer is a real person and that they can pay. After all, the co-signer is effectively a guarantor for the lease. The co-renter is not just guaranteeing the lease will be paid he is also living there, so you need to check that person as well carefully.
Get to Know the Renter to Be Sure It Feels Right
Sometimes it is the intangibles that matter. Get to know the renter and feel him out. If it doesn't feel right, then pass on him and wait for another person to come around. Bear in mind that just off-handing denying an application, even if technically you reserve the right to grant to deny a request to rent, might lead to a discrimination lawsuit.
The trick is to say that you would like to keep the unit available for a little while longer. Someone else is bound to come along. Just say that you are evaluating other applications and will get back to the renter in due time.
Another trick to bear in mind is that insurance is a must when renting out since the renters will inevitable have 'accidents' that need fixing. At AVA Insurance & Auto Tags, we aim to make our client's life easier with policies that are tailored to their needs. You can get more information about our products and services by calling our agency at (954) 454-5483. Get your free quote today by CLICKING HERE.