8-Step Checklist for New Landlords to Reduce Risk & Get a Good Tenant

Sep 13

Mastering the Art of Property Rental

So you’re ready to rent a property? I love it! Rental income can be one of the most incredible ways to grow wealth.

I’m not gonna lie – renting out a property is a journey with many steps, each crucial to ensuring a smooth experience for both you, the landlord, and your future tenant. But it doesn’t have to be overwhelming. There are a lot of ways new landlords can reduce stress and avoid stepping into some real messes, simply by being prepared and informed. If this is you, you’ve come to the right place to get our checklist of helpful tips for landlords so you increase the likelihood of finding and securing good tenants and are best prepared to manage a property.

✅ Step 1: Analyze the Property & Determine Rental Rate

Before listing the property or coming up with a rental value, you want to begin with a comprehensive walk-through of the home to understand the property's condition, layout, amenities, size, and location. All of these factors can significantly impact the rental value, so this will help you compare it to similar rentals in the area and set an appropriate rent. In order to make sure you are comparing it to the right types of properties, you need to thoroughly know the current condition of the property. Once you’ve evaluated the property and examined comparable properties, then you’ll decide your rental rate.

✅ Step 2: Prepare the Home for Photography

This step is crucial for capturing the property's best aspects and attracting quality tenants. Focus on intelligent fix-ups like deep cleaning, paint touch-ups, landscape improvement, and necessary repairs. In addition to the home being safe, sound, and sanitary, you will want to make sure the home is light, bright, and clean. Don’t cut corners on this step! The higher the quality of the property, the higher the quality of the tenant you will ultimately be able to attract.

✅ Step 3: Get Professional Photography

This is one of the biggest mistakes I see people make. Instead of hiring a pro, they take pictures of their property with their iPhone. Folks, I hate to break it to you, but this is a surefire way to fail to attract high-quality tenants and will drastically reduce the number of inquiries you get when you list your property. Hiring a professional photographer is inexpensive and a total game-changer. The property’s curb appeal is now online, not at the curb. The quality of your listing photos will greatly affect the number of views and inquiries you get. So do yourself a favor and get a professional photographer out to take pictures of the home so your property can present itself as best as possible on your listing.

✅ Step 4: List the Property & Advertise Widely

The next step is to list your property with a well-written description and your high-quality photos across as many platforms as possible. Zillow, Trulia, HotPads, Facebook Marketplace, Apartments.com, and even smaller websites like Homefinder or Homesnap are great places to list your property. Finding the perfect tenant is a numbers game – the more people who see your listing, the more people will apply who think it may be a fit for them, and the more people you have a chance to screen and choose from. If you only advertise on one platform, you are severely limiting your number of potential tenants, which is detrimental to your ability to find someone who is well qualified and well suited.

✅ Step 5: Meet the Tenants

Once inquiries start coming in, you should meet every potential tenant at the property in person. This step alone can save you countless headaches and ensure that you're renting to reliable tenants. Don’t do self-guided tours. Don’t have your friend or family member meet them. YOU, yes you, must meet the tenant at the property IRL (in real life). Talk to them and get a sense of who they are and how they act. All of us can make ourselves look great on paper or over the phone, but once you meet in person, there is nowhere to hide. Most communication between human beings is nonverbal, so if you solely rely on an application and a phone call to determine who you’re going to lease to, that means you’re foregoing a TON of information. Meet them at the property in person!

✅ Step 6: Screen the Applicants

The application process is critical. You should collect a credit report, background check, references, and proof of income from every applicant. Do yourself a favor and don’t have an arbitrary credit score minimum. I have had wonderful experiences renting to people with marginal credit scores. However, I will only do so if the rest of the story adds up. For example, I had an application from a single mother who had gone through a divorce a few years prior. She had many shared debt accounts with her ex-husband and, in the process of the divorce, couldn’t afford to pay them. She explained he had decided to sabotage her by not paying them. Fast forward a year or two later, she had a good job, was back on her feet, and doing well for herself. However, the issues from the divorce era of her life were still dragging down her credit scores. I trusted my gut (because I met her in person – cheers for step 5!), and she wound up being a great tenant, paid on time, and treated the property with respect. Going beyond just the credit score can offer valuable insights into the tenant's financial behavior. Make sure you’re looking at the full picture, not just credit scores.

Pro Tip! Call the References and Past Landlords

This is something I see people gloss over all the time when they’re in the process of screening applicants, which is a big mistake because you can learn so much! It doesn’t actually take that much time, and these calls can be full of valuable information from people who have worked with this applicant in the past.
Extra Bonus Tip: Call the landlord from the home the applicant rented from two properties ago for an unbiased review of the potential tenant. If you talk to their current landlord, they might say anything they want to get the tenant swiftly out of their house. Whereas the landlord from two houses ago doesn’t have a horse in the race and will be more honest about their experience with your applicant.

✅ Step 7: Prep & Complete Lease and Disclosures

After selecting a tenant, collect a full month's rent and deposit before signing a legally sound lease agreement. Make sure to include all required disclosures and ensure both parties understand the terms. The landscape of landlord-tenant law is ever-changing in California. It’s very important to make sure you have high-quality, up-to-date lease agreements. You’ll also want to make sure that you provide all of the disclosures required by law (including a Bed Bug Disclosure). It’s also important to disclose any material facts about the property. This is a big part of protecting yourself from any potential legal ramifications down the line. Do not skimp on the lease and disclosure portion. Doing this step correctly will limit your legal liability.

✅ Step 8: Conduct a Move-in Walkthrough

This step ensures both you and the tenant agree on the property's initial condition. A signed move-in form will protect you in case the tenant causes any damage during their stay. This way, should the tenant damage the property, you will have an agreement outlining the condition of the property at the start. A big part of being a landlord is making profitable decisions, and if the tenant does damage, you want to be in a strong legal position to make sure the damages come out of their pocket, not yours. Having the agreement upfront also saves the headache of any argument or pushback from the tenant when they move out. A lot can be forgotten during the duration of a lease, so having the condition of the property adequately documented (with pictures) will save you time, money, and hassle. It will make for a much easier transition from one tenant to the next as well.

The Next Chapter: Ongoing Property Management

While signing the lease and conducting the move-in walk-through may seem like the finish line, it's actually just the beginning of the ongoing property management journey. But that’s a blog for another day!

By following this step-by-step new landlord checklist, you can greatly minimize the risks involved in property rental and secure a beneficial arrangement for all parties involved.

Happy property prep and tenant searching!

Cheers,

Brent

Brent Edwards (aka Brent the Broker) is a residential real estate agent and Realtor in San Diego, CA who helps clients buy and sell homes in San Diego, California and all surrounding areas. Brent is a highly-recommended Realtor in San Diego by family, friends and past clients. Call Brent today at 619-550-8070 if you have any questions about real estate in San Diego or you'd like to buy or sell a home.