Guide to Real Estate Rentals
Real estate rentals can be viewed from two perspectives: that of the renter and that of the property manager. Both the tenant and property manager need to be aware of rental laws and safeguards, and each should know what type of insurance to have to protect the real estate and personal property.
Types of Rentals
Before putting a rental property on the market, the owner or property manager needs to identify what type of rental would best suit the property. The renter needs to understand what type of rental he needs, in order to convey that need to a property manager. Residential properties come furnished, unfurnished or partially furnished. Depending on the area, a property might be available full-time, seasonal or by the day, week or month. Short-term rentals typically need to be furnished. Local zoning regulations and homeowner association rules influence allowable rental terms. For example, some homeowner associations forbid renting by the day or week.
Legal Rights
It is a property manager's responsibility to familiarize himself with the landlord and tenant laws for his state. These laws dictate allowable limits and procedures for security deposits and late fees, as well as the eviction process. For the renter, understanding her rights will protect her from predatory property managers. The U.S. Department of Housing and Urban Development (HUD) website is a national resource for renters and property managers.
Tenant Checklist
The tenant checklist protects both the property owner and tenant. It is a comprehensive list itemizing the condition of the property and its furnishings when the tenant moves in, and when the tenant moves out. A properly completed list, which requires signatures from all parties, protects the tenant from a property manager making an unfair damage claim, and serves as evidence for the property manager, should the tenant damage the rental or remove furnishings.
Risks
Both property owners and renters face risks when looking for tenants or rentals, respectively. Not only does the property manager worry about the tenant's ability to pay the rent, but about the tenant damaging the property. Property managers typically run credit checks and request referrals, to minimize these risks. For the tenant, there is the possibility that the rental is poorly managed, has unresponsive managers or is in fact some kind of scam. For example, if a renter finds property online and mails a deposit, he risks losing his money if the property does not exist. To protect himself, the renter should take steps to check out the property manager with the real estate department, better business bureau or local chamber of commerce.
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