Skip to Content

Leasing 101: A Comprehensive Guide For Property Investors

Landlord and Tenant Discussing Lease AgreementBuying and owning single-family rental properties in Eden Prairie can be an exciting and rewarding investment. However, unlike other types of investments, there are several things you need to consider to correctly shift from a property owner to a landlord. Imagine you are an Eden Prairie rental property owner who is getting ready to lease your property for the first time. In that scenario, you have to first fully figure out the basics of leasing strategies and, more significantly, the laws that now apply to you and your tenant. To get you started on leasing your first property, we’ve developed a comprehensive guide that involves the basics. By following some uncomplicated guidelines, you can improve the possibility of having an enjoyable first experience.

Screening Process Basics

Probably the initial and most important factor in leasing your rental property is picking the ideal renter. And the ideal approach to achieve this is to have a good screening process for each applicant. You’ll need to acquire the important data from your prospective tenant to help you choose if they are the ones you want. At a minimum, request that they fill out an application that comprises the names and birth dates for all intended occupants of the house, including those under 18, five years of employment history, and at least three references. It is also imperative to get Social Security numbers for all adult tenants and run a background check on each person. After that, call and verify the information on their application. If at all possible, contact any previous landlords and ask about their renting history. It might take some time, but the more research you conduct before you sign that lease, the less chance you will undergo unpleasant surprises after some time.

Avoiding Discrimination

As you advertise for and screen renters, it’s essential to avoid discriminating against potential tenants, even unintentionally. It is illegal to discriminate against a tenant depending on qualities such as race, sex, color, national origin, religion, handicap, and familial status; be aware there may be other protected classes dependant on your state’s laws. When writing rental ads, make sure to avoid using language that might qualify as discrimination, such as demonstrating that you will not rent to people with children or those who live on government assistance. Then, as you collect applications and screen tenants, fairly assess your applicants about the information they give and not on other criteria. By maintaining professionalism and executing an unbiased screening system, you can stay clear of discriminating against any potential renters.

Understanding Reasonable Accommodations

Similarly, it is vital not to think that a person with a disability is automatically not a good candidate for your rental property. Under the Federal Fair Housing Act, property owners need to make “reasonable accommodations” for their tenants, should they be required to do so. Specifically, a reasonable accommodation is “a change, exception, or adjustment to a rule, policy, practice, or service that may be necessary for a person with a disability to have an equal opportunity to use and enjoy a dwelling.” If your prospective tenant otherwise matches the criteria for renting your property, accommodation must not be an excuse to turn them down. In other cases, the accommodation a tenant requests may be something they will install and pay for themselves, with the arrangement that they will return the property to its original condition upon move-out. In other situations, the tenant may request an accommodation from you that, if determined reasonable, you will need to give. This incorporates allowing service and emotional support animals in the rental property, even though you have a strict policy forbidding pets.

In conclusion, it’s important to comprehend that there may be different and supplementary Landlord/Tenant laws that apply in other cities or neighborhoods. Before leasing your property, you must carefully research all applicable laws in your location and craft your processes in line with them.

It could be difficult to understand all the laws and best practices of leasing rental properties. Then why don’t you entrust this important task to an Eden Prairie property manager? At Real Property Management Viking, we give clear and anti-discriminatory screening and leasing services that help our rental property owners find the best possible tenants for their properties. Contact us today or give us a call at 612-442-8850 to learn more.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details