This March we have seen record-breaking levels of heat, and with this, we are seeing a positive surge in the market. It is no secret that the winter season is slow and as weather warms the rental market sees a higher demand. This past week, Sin City Real Estate and Management completed one move-in, and we have six more in these upcoming weeks. We have also been experiencing an increase of scheduled showings and submitted applications. Now is the prime time for homeowners to get their property rental ready. This week’s blog is covering inspections, showing expectations, tenant screening, leasing preparation, as well as being Fair Housing compliant.
Before showing a property, an inspection should be conducted, and the property should be in the best possible condition. There should be no excuses while showing a property. Having an inspection completed allows you to communicate honestly with the prospective tenant, answers should be factual and not guess-work. Imagine a showing where a prospect asks about the age and condition of the water heater or HVAC system, this typically isn’t “top-of-the-head knowledge” without an inspection, and you are unable to give an answer. That is a lost tenant lead. Inspections also provide insight as to the structural integrity and any possible safety hazards of the property.
The showing is complete, and an application has been submitted – tenant screening is the next step. As per Nevada law, housing providers may screen tenants based on credit, criminal, and eviction reports. However, they must comply with federal Fair Housing and Fair Credit Reporting Acts. Meaning that prospects cannot be denied based on discriminatory reasons and the credit report must be accurate, private, and fair. According to Nevada Law, if an application has not been processed - or had an approval - but someone else has been placed in the unit, the application fee must be returned to the applicant who did not get selected. If the application has been processed and denied, then the application fee is non-refundable.
After the tenant has accepted the approval, and before the move-in, the lease must be signed to enter a legally binding contract that protects both the owner and tenant. There are federal, state, and local laws regarding leases and their requirements. Refer to the state and local laws that the property resides in. The lease should include any disclosures about the property – like lead-based paint, flood zones, structural issues, or security deposit location. Tenant responsibilities should be clearly outlined – including if they are responsible for landscaping or utilities. There should be a description of lease arrangements, payment options, terms and conditions for lease extension or termination, as well as any restrictions regarding the property. Fees may be applied for lease preparation; these fees must be disclosed before signing.
During this entire process, Fair Housing laws must be adhered to, if at any point they are ignored the tenant/prospect has the legal right to report the housing provider without risk of retaliation. Fair Housing means that tenants and prospects may not be discriminated against based on their sex (including gender identity and sexual orientation), race, color, national origin, religion, familial status, and disability. This can be as simple as steering an applicant towards a property based on their demographics – if a community is predominately Black and you encourage a Black applicant towards this community because of their race, then that is inherently discriminatory. This would apply to any protected status – like automatically offering a wheelchair user a first-floor apartment without their request.
The presence of a professional property management company saves the headache that this process brings for homeowners. We bridge the gap between homeowner and tenant/prospect, handling communication, screening, and lease preparation. Here at Sin City Real Estate and Management we handle listing, leasing, screening, and inspections, as well as general property management when a tenant is placed. A property management company should alleviate the owner's workload, allowing them to enjoy the profits of their investment while the tenant enjoys a safe, habitable home.
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