Hello everyone, i am a 1st time home buyer, less than 3 month with my property, getting ready to rent one unit that just become available less than 3 weeks ago, did some touch ups, thorough cleaning, took pictures, and list it on Zillow (because my realtor was taking too long), i had received several calls, emails, etc, so my questions are:

-It's better to do group showing?

-I just read on a MA page that it is illegal to charge an application or credit check fee, so i am supposed to pay from my pocket for each applicant?

-Which one it's better: 1st Month, Last and Deposit / 1st and Last or 1st and Deposit? And Why?

-Can i add in the rental applications that this may vary depending of the result of their credit report? I mean, if they have a good and clean readi report, just take 1st and deposit, and if they have some small flags, take 1st, last and deposit?

I can't speak to the MA question, but an open house with a one or two hour timeframe is a fine way to show.

I have started charging a larger deposit, so I ask for first and significant deposit (I would rather have a bigger deposit than last month's rent, but I would take that too if I could get it).

I would at least do a pre-screening so that only somewhat qualified applicants will be invited to my "open house."

You need to learn your state and local laws, in addition to Fair Housing laws. While you are just trying to find the "best" tenant for your unit, you could easily run afoul of Fair Housing laws if you discriminate against families. MA is a tenant-friendly state.

Write out your rental criteria in terms of income, credit score, employment and LL references. Evaluate everyone against this criteria. Do not go by gut instinct.

The Idaho Apartment Association recommends taking a "Yes, but" approach to less than ideal applicants. Make your criteria public. If less than ideal applicants want to apply, say "Yes but you will need a SD of 2 months instead of one month's rent". This is legal in my state, I beleive MA limits the amount of SD a LL can collect.

Congratulations on purchasing your first rental property.

What part of MA is your property in? Does your city / town require a Board of Health inspection be done prior to allowing someone to move in?

Have you joined a LL group yet? If not I strongly recommend doing it.

Print out a copy of the MA State Sanitation Code as well as any local laws for rental property. I suggest you get, read & understand "Property Management for Massachusetts Rental Owners by H. John Fisher. It's an easy read, well laid out & provides copies of the various forms you'll need.

I presume you already have some sort of rental application. Where did you get it & is it legal in MA?

Will you be renting for a term or month to month? What are you using for a rental agreement? Make sure it is valid in MA?

As you said in MA we LLs are not allowed to charge an application fee. IMO you do not need to use a paid service to check out every applicant. I find that a lot of applicants eliminate them selves by not meeting my rental criteria. If you don't already have one I suggest you develop you own list (include things like incomplete application, not enough income, pets, credit score, number of occupants, smoking, previous evictions, etc). You can also use the MA gov site to check on their court records to help eliminate some of the applicants.

For me, I've found that requiring new tenants to pay first, last, security deposit and a $75.00 lock / key fee works best. Before any new tenants are given keys & allowed to move in all of these funds must be paid in full with either cash or a bank check (no personal checks). I also verify that any tenant paid utilities have been transferred to the new tenants before giving them keys.

I assume you are living in one of the units since you said first time home buyer. That might give you some leeway that you would not otherwise have in choosing your tenants. Get to know your state and local laws.

Do learn the difference between "home" and "house". Home is where you live, house (or unit) is something you might own where someone else lives - it is their home. The big distinction is the emotions involved in home and houses. You have to keep your emotions in check in this business. I often say to tenants, "it is my house, your home".

Depending on your area, and class of housing, it might be hard to find someone to come up with a large sum of money to pay and move in. Therefore, I get the first months rent (maybe a 1.5 months if they are moving in the middle of a month) and a deposit of at least a months rent. That deposit is held by the LL to cover any damage or cleaning that needs to be taken care of when the tenant leaves. Without that, it is a lot of work to try to get it covered from a leaving tenant.

Last month's rent might be nice too, but that can add up to up front costs. Remember, a lot of tenants do not have savings, live month to month (even the ones with high paying jobs) so for them to come up with that much money might take them out of your pool. If they have iffy credit it is probably less likely. If you wish to "work" with someone, only mention it after they fail the credit report and you know you want to take a chance, otherwise you set yourself up to have to negotiate with people you really don't want.

It may not seem like it but there is a BIG difference between getting First, Last, and a security deposit and getting First and 2 months of security deposit.

I find it best to get 2 months’ worth of security deposit even if they cannot afford the last month’s rent at sign up time.

Thanks everyone for your support.

-Steve

What part of MA is your property in? Does your city / town require a Board of Health inspection be done prior to allowing someone to move in? - Brockton, i haven't look for that information, but i started the process to investigate about the led, i had a 2 year old son and and one of my tenants too.

Have you joined a LL group yet? If not I strongly recommend doing it. - Noo, i haven't done it, do you ? Any recommended?

Print out a copy of the MA State Sanitation Code as well as any local laws for rental property. I suggest you get, read & understand "Property Management for Massachusetts Rental Owners by H. John Fisher. It's an easy read, well laid out & provides copies of the various forms you'll need. - Thanks i will look for that book.

I presume you already have some sort of rental application. Where did you get it & is it legal in MA? - I got one from here, which one you use?

- Thanks LindaJ. Yes i live in.Thanks for all your input.

- Mike SWMO Thanks. MA doesn't allow more than 1 month security.

- Johnny B thanks. Tell me more about your pre-screening question? Can you share them? Masscourt ? Umm didn't knew about it, will check about it. In Brockton is the building.

-Thanks AllyM, that is good to know about the tax stuff.

-Thanks Robert Ontario for the input.

That would be tough to not be able to charge an application fee.

-Robin thanks. When you guys said: prequalifying and screening, what do you men? Can you give me a tour of your prequalifying and screening process?

-Still Learning thanks for sharing, will look it up now.