Whether you're A Landlord or Renter, I'm here to help!
I want to rent my home, what should I do first?
As a homeowner when the opportunity arises for you to rent your home or investment property, start with these first steps:
- Determine whether you will list it yourself, hire a professional, or rent to someone you know.
- Determine whether you will manage it yourself or hire a property management company.
- Determine when you will vacate the property, or when it will be available, and the length of a lease you want or will prefer.
- Decide if you want to accept pets and if you intend to make any improvements, repairs, or changes to the property.
As a prospective tenant, renting a home is sometimes preferable to buying. Here’s what you should do to prepare:
- Contact a Realtor for professional advice or direction.
- Collect the information you will need to submit with an application: a copy of your government issued photo ID, two most recent paystubs or proof of current income, and gather your current and previous employer information (business address, supervisor/point of contact, phone number, years of employment/service, or LES as military). If you have a new position or job, you will need to include a letter of intent disclosing your projected income. You’ll also need your current and previous rental information (property manager/landlord name, address, phone, property address, and years of occupancy).
- Prepare to pay an application fee (per adult), first month’s rent, a security deposit, and a pet deposit (if applicable). These may be paid by credit card, money order, cashier/bank check, or personal check depending on the property manager/listing company’s guidelines.
What to consider when you are renting:
As a homeowner, you should consider:
- your financial position in case of a lengthy vacancy. It is advisable to have 3 months’ expenses in reserve to cover your HOA/condo fees, mortgage, insurance, and utilities.
- tenants may care respectfully and meticulously for your home, intentionally or unintentionally damage your home, or cause necessary and unnecessary repairs to be needed.
- establishing a friendly or strictly business relationship between landlord and tenant. In all cases, open and honest communication and responsive access are the keys to success.
As a tenant, you should consider:
- The owner may be directly and personally involved in the maintenance of the home or they may have a property manager that collects rents and arranges repairs and maintenance.
- Pets may or may not be allowed, may be limited to a species (only cats, only dogs, etc.), may be limited by size (dogs under a certain weight), and may be restricted by breed in some places (usually apartment complexes have breed restrictions). Nearly every one of them will require a pet deposit in addition to a security deposit, or they may charge a monthly pet rent, or both.
- Your credit will be checked, your employment and rental history will be verified, and you may discover credit and rental history flaws you didn’t know existed. I ask that my clients disclose any issues they are aware of so that we can address them upfront where possible.
- Your application could be declined for credit history, insufficient income, or simply competing with other applicants. It is expected that if you are approved and accepted, you will sign the lease within 2-3 business days.
contact Kelli to schedule your consultation today!
Landlord F.A.Q.
Plumbing, heating/cooling, and electricity are all required to be in safe, working order per law. To prevent accidents or injuries, flooring, windows, doors, steps, etc. all should be in good and safe condition too. If something could cause someone to trip or fall, that issue should be corrected. There are also laws that require a home that will be rented to have working appliances or to disclose if an appliance will not be functional or repaired. Prospective tenants must be aware of what they will or will not have access to, and a clear expectation if it will not be fixed if it fails.
If you plan to manage the property yourself, you have every right to do so. If you live outside of the area or will be living in another state or country while the home is rented, you are required by Virginia law to provide a resident ‘agent’ to be responsible for the property. This does not have to be a licensed person, simply a resident of Virginia and preferably local to the home. They are not required to attend to property needs (contacting repair contractors, etc), but it is suggested that they be willing and able to do so.
If you do not have someone willing or able to be that agent, it is highly recommended that you hire a property management company. Listing agents are not property managers, unless they disclose such information. I am able to manage property on a very limited basis–let’s discuss your needs before planning this relationship with me. I can list property that is for sale and/or rent, and will be happy to discuss property manager options. I am happy to cooperate with a property manager of your choice on your behalf to successfully rent and manage your property.
Everything in real estate is negotiable to an extent. If someone offers you more or less rent than was listed, you have the right to accept, reject, or negotiate the terms of an application. If you want to keep a fixed price and terms, then we will discuss a strategy and plan to meet your goals.
The Virginia Code, Fair Housing Act, and Virginia Residential Landlord and Tenant Act (VRLTA) govern your landlordship rights. You cannot discriminate against the national, state, or county established classes. However, you do have the right to refuse anyone with inferior credit history, lack of qualifying income, smokers, and pets who are not service animals. Likewise, Realtors cannot discriminate in the same way, and more so.
The lease will provide the rules that will allow the tenant to vacate early with your agreement. If they do not leave at the end of the lease, and you did not agree to let them stay or extend the lease, then a real estate attorney should be consulted. Eviction is easier in Virginia than some states, but it is not as easy as it should be. Virginia takes land ownership very seriously and some trace back to the original laws from the 1600s. There are remedies and legal actions to consider in either of these situations. I am happy to answer questions and provide advice or direct you to a professional who can better assist you.
Renter F.A.Q.
Every property manager, owner, and real estate listing company has their own calculations and standards for their rental properties. Property managers and real estate companies typically expect the monthly rental rate to be about a third of the tenant’s gross annual income or multiplied by a factor of 40. For instance, if the monthly rent is $2000, the qualifying gross annual income would be between $72-80K, depending on the rental company. Your credit score will also be taken into consideration.
Typically, the first month’s rent, a security deposit of the same value as the monthly rent, and a per-adult application fee will be required. If there is any risk in your application, the owner/landlord can be willing to accept it with conditions such as an increased security deposit or two months’ rent upfront. Application fees vary, but common ones include $30 each or $100 per couple. If the owner accepts pets with a pet deposit, that will be another fee to consider.
Most people want tenants with good credit. The expectation of ‘good’ can vary by a credit score minimum, but the traditional expectations are that there are no judgements/liens (especially utility judgements for failure to pay) against you, no bankruptcies in recent years, no foreclosures or short sales, no evictions (this is an immediate rejection), and good payment history (rent and creditors). Most will want a credit score above 650, and some will accept a lower credit score with conditions.
I work with tenants under a Tenant Agency Agreement. This allows me to advise, counsel, and show you properties with your best interests in mind. In a 2024 NAR lawsuit settlement, landlords are no longer assumed to pay a Tenant Agent’s commission. The payment of my commission will be your responsibility after you sign a lease on a property I have shown you. It is my obligation and goal to ask the Landlord (agent) to pay all or some of my commission. Any amount unpaid, will be owed by you to me.
It depends on the reason for the rejection. If there were multiple applicants and they accepted another application, you can continue to attempt to rent until you succeed. If your credit was the reason for the rejection, the credit issue could determine your future opportunities. You may have better success renting directly from a For Rent By Owner (FRBO) or someone who does not run a credit check or doesn’t have to abide by the stricter guidelines of the Commonwealth. It is possible some owners/landlords will accept a co-signer, but please note that the co-signer will also have to apply and qualify with their own debt and your rental debt. If you cannot overcome the credit issues before turning to a FRBO, I recommend you work on your credit report with a professional credit repair company in order to improve your rental chances when the FRBO lease ends.