Jonathan Chi - Real Estate & Marketing Professional

I have so far over 20 lease listings this year and a lot of times agents and applicants ask me how they can prepare strong applications that will be accepted by landlords. Actually, the answer is very simple - Follow the Instructions and be Straight Forward with the landlords.

Most of the time, the listing agent include the required document for application in the MLS remarks.  The common requirements are C.A.R. (California Association of Realtor) application or any formal written application form, recent credit report within 30 days that also show the credit scores, and most recent 2 pay stubs for income verification. Some rental agencies might charge an application fee and some might not.  The rental screening fee is usually between $25 to $50 a person.  (C.A.R. advised cannot charge over $30).

Other than the complete application package, it is very important that applicants or applicants' agents communicate the intend of the lease with the listing agent/landlord.  A lot of renters now have or have been through financial difficulties and that is why they are renting.  Everyone has a different story and sometimes it is very hard for landlords to keep up with everyone's reasons for moving.  It would be best if the applicants can send landlord a short letter of intend/explanation to accompany their applications.

Believe me or not, there are not that many good lease properties out there, and the good ones usually receive multiple applications.  By being proactive as the applicant definitely will increase the chances of getting your application accepted.

In addition, a lot of tenants might jump from agents to agents for rentals.  They might think that by going to the listing agent, there is a greater chance of them getting the lease.  There is no definite answer to that.  However, what I've found is that I like to work with agents that know their clients well.  Lease transactions can move really fast.  If you are thinking about working with an agent, you should find one that will represent you in the best possible manner.  Your agent should have your complete application file ready before you even go on showing appointments.  By doing so, you will not miss out on any homes that you like because your file is not complete.

Questions and comments are very welcomed!

11-17-10 Update

20806 Buckboard Place, Covina, CA 91724

Back on the market.  Price reduced to $799,000 (originally listed on $829,000)

3100 sq'ft / 5 bedrooms / 4 baths / 4 car garage / Pool

MLS Information

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20910 Broken Bit was sold for $638,400.

The property is currently for rent for $3,000/month.

4 BDR / 3 Baths / Loft / 2,602 sq'ft

It is very similar to my previous listing on Mesquite Ln.  Click on the above photo to view the video tours.

Over the past few years, I have been working with many rental properties investors. Many of them have asked me to advise them on how to generate the highest possible rent for rental properties. While there are many options for improving rental property income, here are a few simple and low cost investments that will help landlords to get the most for their rentals.

1. Keep the Rental Property Clean and Presentable (FREE)

The first factor when a tenant considers a rental property is its attractiveness and cleanliness. The property needs to be CLEAN at the very beginning stage (before marketing and showing). Many landlords acquire properties through Bank Owned Sales or foreclosures and do not make an effort to clean and maintain properties that often show signs of neglect or even abuse. Tenants have many choices in a market saturated with rental units. In order to be competitive, you must keep your rental clean at all times.

2. Paint (Neutral Color)

A new coat of paint is a cost effective way of improving the appearance of a rental property. The cost of hiring a professional to paint a one bedroom apartment is approximately $1,000 or less. A fresh coat of paint brightens up the property and can the deciding factor for prospective tenants who have many choices in a market crowded with available rental units.

3. Flooring / Carpeting

Make sure floors and carpets are clean. If the carpet is too dirty to be cleaned or is an unpopular or dark color, it is sometimes better to install new carpet and flooring. The cost of new carpet installation is relatively compared to a couple years ago. Investing in new carpet improves the overall appearance of the property and provides a more inviting atmosphere to prospective tenants.

Conclusion

When you have a property for lease, stop for a moment and consider whether or not you would be willing to pay the rent you are asking for your property if you were a renter. Would you pay top dollar for a dingy apartment with outdated carpet? Not likely. Don’t underestimate the impact that improving and maintaining the appearance of your rental properties has on your ability to generate higher rental income and get a better return on your investment. If you do your homework wisely, you will find that the cost to improve the appearance of your rental property can be much less than what you expect.