Susan Ormont - RISK VERSUS REWARD: A SIMPLE GUIDE FOR INVESTING IN REAL ESTATE

you because of reason Y, and you did not qualify to rent my house. My minimum qualification standards are legal and in compliance with all FHA and ADA laws.” I recommend that you think about, determine, and put in place your exact minimum qualification standards before you ever place your property on the market.

Suggestions for Minimum Qualification Standards

Everyone will have their own basic and more specific ideas for their minimum qualification standards when they’re thinking about how they will screen tenant candidates, but here’s a list of some different standards to consider. Keep in mind that these are suggestions only. Please check with your attorney to ensure they are legal for your particular property and that you’re in compliance with any and all laws and regulations, which often vary by location. • The minimum deposit you’ll require. Most people charge a security deposit equal to one month’s rent. Some add a non-refundable pet deposit, and some charge larger amounts in credit-related situations (for example, if the person has had credit issues or if their credit does not meet the minimum standards). • The minimum credit rating you’ll require. What kind of credit rating are you going to require for a tenant? You want to do the check yourself, but remember that you must have their permission to check their credit. • Will you allow pets? If so, what type? What’s the maximum number? What’s the maximum size? If you choose to allow pets, make detailed rules, but consider increasing the security deposit or adding a non-refundable pet deposit, or even adding a monthly fee on top of the 91

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