Folks who have substantial mortgages to pay are staying put until the sagging housing market gets back on track.  Those who are compelled to relocate for various reasons, may be taking a loss or looking for ways to save their investment.  If you think owning a home is a hassle, try renting it.  For those who considering renting out their own home, there are common pitfalls one should be aware of.  As a rental property owner and manager of some years, I have been around the block a few times. I managed some pretty challenging places for out of state investors.  At one inner-city tenement building, I had to carry a loaded pistol (and allow the handle to protrude from my belt) when collecting rent or answering complaints. 

     If you're a homeowner who must to rent, you'll have to answer to three types of persons if you make the wrong choice of tenants for your home.  They are- the tenant, the neighbor and the government.  All three have their own vested interests in what landlords do. The following items represent a brief on what to be aware of when considering who will live in your home.  Don't take it lightly, renting could become the biggest nightmare of your life. 

(1.) The number one mistake is not screening the applicant.  Let's be frank.  There are plenty of troubled people out there looking for someone to take advantage of.  They will seek to fraudulently obtain housing for illicit purposes and this means legal and material repair costs that could run into the thousands in a matter of weeks.  Follow some simple steps and you will minimize your liability;  (A) when you receive a call from the sign or ad, answer questions only about the property and let the caller know that he needs to show a government issued ID and pay at least a $20.00 (dollar) investigation fee.  This alone will discourage most of the bad applicants from even making an appointment.  But there will always be someone who calls your bluff and shows up for an appointment.  Be prepared to follow through.  This is your most important step in the screening process. (B.) When an applicant does show up for an appointment, allow him or they to fist walk through the home while you wait near the front door or on the porch.  If they express an interest in applying, have a small table and folding chair in the kitchen with blank applications and a pen.  Try to get the applicant to fill out the application before leaving, or there's a good chance that you'll never see him again. (C.) Go over the application to be sure it is legible and signed.  A good app. should have a Release of Information agreement just above the applicant's signature.  Each adult should sign and provide personal information, ID, current address and at least one former address (...and always ask for a maiden last name on female applicants).  Also, be sure to record the address on any IDs, as well as the license number, SSN and date of birth. Always give every applicant the same courteous opportunity to file an app., whether or not you intend to rent to the individual. 

(2.) Red Flags.  There are some obvious things which seasoned managers of rental properties will notice in potential tenant's behaviors during the interview.  Be aware of straw-men, individuals who become proxy renters for others who may use the premises for illegal activities. For example, you may have a three bedroom home for rent.  A single person or a couple may express interest even though it is much too large for them.  Another applicant claims to be from another state, where his references cannot be checked.  A woman shows up for an appointment while a man waits for her in the car.  She may claim that he is just a friend and that she'll be living alone or with her children.  You get a call from a renter, who when they arrive, are accompanied by some friends. The friends walk through the home with the interested party, despite the statement that they won't be living there.. 

Don't make outward judgments!  Get the information, check the ID, collect $20.00 and do the research.  If the information on the application is incomplete, false or illegible, the application is simply tucked away and that is that. No one can be offended.  The worse thing an owner or manager can do is to offend an applicant with a suspicious attitude before verifying the facts.  The only legitimate reason for not accepting an application is when the renter(s) cannot provide an official form of ID.  And that is something that can be mentioned during the first contact call. 

(3.) Verifying Addresses.  The current landlord should be willing to say that his tenant is in good standing and not owing rent.  Legitimate questions of interested parties would be, does the tenant keep the premises clean?, does she/they have allot of traffic or any disturbance complaints, does he/they pay the rent on time and if not, how many times late?  If the current landlord hesitates or refuses to commit, he may not want to say anything to keep the next landlord from renting to his unwanted tenant.  Often, current landlords will speak well of bad tenants just to get rid of them.  Other applicants who want to hide their history (eviction/property damage) may use a relative or friend as a reference for current or past addresses.  One good way to check on applicants (provided you have a release-of-information clause) is to go to the country court, Dept. of Civil Records to check the name of applicants against the court records for any evictions due to non-payment and/or property damage by tenants. The court records will also show recent charges for drug possession, DWI and other indicators like adult abuse and protection order cases. It is not advisable to report back to an applicant that he was rejected due to any of these or other social infractions, as this act might bring a defamation suit.  Your decisions should be kept as confidential as the personal information you are entrusted with by applicants.

More will be written on this topic.  If you have any questions, please feel free to ask.