DO: Screen tenants thoroughly.  You're entrusting hundreds of thousands of dollars worth of real estate into their care and possession.  Know something about them!  Looks can be deceiving.  Run credit reports and do thorough background checks.  Take the time to call references and employers.

Don't: Harrass and hover over your tenants.  They are entitled by law to "quiet enjoyment of the property."  Too much interference and "spying" can backfire on the landlord.  A good background check up front should ease any fears about how they will treat your property. 




DO:  Open up a separate bank account for your rental property.  It will help you clearly see your expenses and profits and your accountant will thank you for it.  Legally, as an individual landlord, you can earn interest on your tenant's deposit and keep the interest for yourself.


Don't: Spend your tenant's security deposit.  While it is legal for you to earn and keep interest on this money, it is NOT legal for you to willfully spend, refuse to return or otherwise withhold the money when the tenant vacates the property and leaves it in acceptable condition.  The security deposit is the number one reason tenants' have cited as prefering to work through a property mangement company rather than an individual.  It is also the number one reason for small claims actions against landlords.     

 


DO: Be quick to send a late notice as soon as the rent is late. Very often, landlords don't want to seem too eager for the rent so they will give the tenant an extra day or two. That procrastination usually turns into at least a week. Before you know it, the tenant is in serious violation of the lease. That's why you have to be on top of the rent right away. Be ready to take the proper action as soon as the rent becomes late.
DON'T: Be a procrastinator.
DON'T: Get into any heated discussions with the tenant.
DON'T: Fall for the old tenant sob story routines or excuses.
DO: Keep a friendly professional arm’s length from your tenants. No more being chummy with tenants! This is a business, not a hobby. “Familiarity breeds contempt.” Many tenants have a way of making it their mission to become friends with their landlords. It has always been a valuable rule of thumb to not do business with friends and family. 
DO: Help your tenant keep their lease in good standing.
DO: Help your tenant keep their word and their signatures in good standing, too. Late fees are an incentive to pay rent promptly. They are an excellent way to train a tenant to prioritize the rent payment.
DO: Tackle that list of repairs or improvements. Remember Quality tenants are willing to pay a little more for a quality property that is carefully maintained. 
 


DO:Read and explain the Lease to the tenant in person. It is more effective that way. After all, the lease agreement is an instruction manual for how to be your tenant in your rental property. You can get a real good idea of what these people will be like as tenants by how they respond to the terms in your lease.
For example: 
     - What does it tell you if the prospective tenant has a major problem with your late fee policy?  That's right, they expect to pay rent late.
     - How about if the prospective tenant argues about being responsible for minor repairs? That's right, they expect to damage the property. 

Remember, the lease is not meant to be used as a weapon; it is a Landlord Protection Tool to defend yourself and your property from unscrupulous tenants and difficult situations.

What do I do when...The tenant wants to leave?
If your tenant wishes to vacate tenancy properly, it usually means giving you, the landlord written Notice to Vacate in a timeframe outlined by your lease agreement. Normally this allows the landlord enough time to prepare and find a new tenant for re-rental.
The usual steps a lease-abiding tenant would take to terminate tenancy are:
1. Notify the landlord in writing within the proper number of days notice according to the lease. (Most leases require 30 days written notice)
Keep in mind that a tenant can only give a valid 30-day notice during a Month-to-Month tenancy, unless that notice is coordinated with the expiration date of the lease.
2. After notice is given to vacate, you can make arrangements with the tenants to show the rental to new prospective tenants.
3. DO: Send the tenant a “Move out Reminder Letter”. About 2-3 weeks before the tenant's proposed move-out, it is a good idea to send a letter that instructs the tenant how they are expected to return your rental property to you and where to return the keys in order to be entitled to their security refund.
4. DO: Send a “Move out Cleanup & Debris Letter”. This is another reminder letter we like to send. Over the years we have found a definite difference in the way people will leave a rental property when we use this form. It should give specific instructions about what is expected of the tenant when vacating your property.
5. DO: Inspect the rental property for damages.
6. Do: Conduct the final property inspection without the tenants present. There are many reasons for this.
     - Most damages are found after the tenant leaves and the home is vacant.
     - In fairness to you the landlord, you cannot make a full careful list of security deductions with the tenant watching. It takes time to do a good inspection.
     - Avoid a confrontation that may cause more damage from a disgruntled tenant at move-out. Let them go smoothly. Then you are in better control over their refund.
     - Take pictures or video tape the property showing the areas that are issues.

What do I do when...the tenant has moved?
When a tenant has vacated a tenancy, you must handle the situation properly, especially if you want to avoid problems with your former tenant and the possibility of legal hassles and a big waste of time, aggravation and money. Often there are charges against the security deposit, even when the tenant has done a great job complying with the Lease Agreement. 
Assuming the tenant left the premises in poor condition, the landlord is required to follow certain procedures to keep or collect money from the tenant to cover the damages.
 
1. DO: Use a Move-In/Move-out Property Inspection Report. This report documents & certifies the condition before and after the tenancy.
2. DO: Use a “Security Settlement Statement”. This statement officially lists the charges made against the security deposit and also notifies the tenant of any additional charges above the amount of the security deposit.
3. DO: Use a “Settlement Charges Guide”. This is a form we give tenants along with their “Security Settlement Statement” just to show them how much we will be charging them for some of the usual damages.