Comfy Austin

There are currently 78 duplexes on the market in the Austin TX area that are priced below $180,000.  The average price is $133,000.  With prices like that it may be possible to buy a duplex and have the rent cover the mortgage.  Of course, there are other expenses associated with property rentals besides the mortgage such as leasing and property management expense, cleaning between rentals, changing the locks, ongoing repairs, and tenant evictions  Owners who choose to find and screen their own tenant oftentimes rely heavily on their own "instinct" in tenant selection and take a hit and miss approach toward the property tenant application analysis.  This can be a costly mistake that months later can cost the owner perhaps as much as $1500 in attorney fees for assistance in extracting a shrewd tenant from the property.  There are proven steps to avoid leasing to the wrong people. 

• Step 1:  Let all prospective tenants know that you require a written lease application, copy of driver's license, and their authorization to perform criminal, credit, and rental/income verification checks.  This will fend off the bulk of your deadbeats and time-wasters.
• Step 2:  Collect a detailed rental application from each applicant 18 years and older.  Make sure they sign it and the application is complete.
• Step 3:  Run the numbers based on their stated employment.  Can they truly afford the rent?  As a guideline, many landlords require the gross income be a minimum of 3 times the gross rent.
• Step 4:  Run the credit check. Don't rely on the score alone. Look in depth at the recent past. Is there credit headed up or getting shaky. Take at least 10 minutes to develop a clear picture of what you see from the report.  If the person has a bunch of charge offs at places like the cell phone company, the flower store, and a general history of not honoring their obligations, you are probably next in line to be injured by their bad luck or indifference to their financial obligations.
• Step 5:  Call the former landlords.  Go back beyond the current one if possible because the current one may give a more favorable review if they are trying to get them out of their unit.  Do an eviction check as well.
• Step 6:  Look at their driver's license.  Make sure you have positively identified the person you are handing the keys to and have not run a credit/background check on a stolen identity. 

Finally, engage them in conversation about how the unit fits their needs, ask what they like best about it.  If they tell you it's perfect because they have to have a place by the next day, consider this statement a yellow flag.  People in a hurry might be expecting to be evicted from their current place.  Be cautious and go through your detailed process of tenant evaluation.  Don't give them the keys until you are satisfied.