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The Business Side
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Preparing Your Home for Tenants
See also our Help with Marketing
your vacation rental home or condo.
The Business Side
Tenant screening is one of the most important aspects of renting your home. The
goal should be to find appropriate tenants for your home. Happy, responsible
tenants take care of your home.
When speaking with prospective tenants, ask questions about the number of people
in their party and the makeup of the party. How many adults are there? How many
children? If your home is filled with antiques, a family with young children
may not be comfortable there. Some families seek an informal beach house with
casual furniture, others want a more formal, elegant setting. Also find out if
the prospective tenants are familiar with the area. Are they looking for a
quiet, peaceful area or an environment with lots of activity? A phone
conversation can usually determine whether your home and its environment would
be a good match.
Although email is often the most efficient way of making the initial contact,
it should not be the only contact you have with the vacationers. A phone
conversation will yield information about the prospective tenants that an email
might not.
Lastly, be prepared for the eventuality that you have a willing tenant you do
not want to rent to, based on something you picked up in conversation.
Prospects will first ask if the home is still available; instead of saying
"yes," which makes it hard later to renege, say "we have an interested party,
but if they don't follow through, it could be available." Then, at the
conclusion of the conversation, you are free to hedge.
A lease is the legal document that binds you and the vacationer to rent your
home for a specific period, price and with specific terms and conditions.
Renting your home is a serious business proposition. A lease is always
recommended, even for a weekend rental. Contact us if you would like to receive
a sample lease.
When vacationers decide to rent your home, ask for a deposit (generally between
$200 to $500). When the check clears, send two signed copies of a lease. When
the tenants sign and return one copy of the lease, keeping the other copy for
their records, they should also send a check for half of the total rent. The
balance of the rent should be paid a month prior to their tenancy. You might
adjust this plan if the rental is more than a year away. If the arrangements
are made very close to the time of tenancy and the rent is being paid upon
arrival, you might request a certified bank check or money order.
Be cautious about "holding" a reservation for someone. Consider a week as
"booked" only after you have received a deposit. If you send out a lease or
promise the home to prospective tenants before you receive a deposit, they may
change their mind and not let you know. In the meantime, you may have turned
away other interested tenants.
Be sure to include the following information in your lease:
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Specific arrival and departure times. Many owners have a 10 a.m. departure time
for outgoing tenants and 2 to 3 p.m. for incoming tenants. Allow sufficient
time for cleaning between tenants.
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Schedule of payments: Standard procedure is to receive a deposit equal to half
of the total rent; the balance of the rent plus security deposit is usually due
30 days prior to the tenant's taking possession of the home. State the purpose
of the security deposit and the date on which you will return it to the renter
following an inspection of the property. See below
for more on security deposits. If there is insufficient time between the actual
booking of the property and the week of tenancy, request a certified bank check
or a money order if you will be collecting the rent upon arrival.
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Cancellation policy: Generally, if a tenant cancels a reservation and the home
can be rerented for that time period, the tenant's deposit is returned. Tenants
usually don't cancel except for an emergency situation, such as illness or a
death in the family; most homeowners return the deposit under these
circumstances. Most homeowners refund any monies received if a vacationer
cancels with sufficient notice. Some charge a 5% cancellation fee.
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Maximum number of occupants: This number should include children.
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Pet policy: If you do not accept pets, state this clearly in the lease. (Click
here
for more information.)
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Expectations regarding cleaning and bed preparation: Most owners require
tenants to leave the home in the same condition in which they found it.
The security deposit is for repairs and destruction that go beyond normal wear
and tear. The average security deposit is several hundred dollars; generally,
the higher the rent, the larger the security deposit. After you or your
property manager has had a chance to inspect your home, return the security
deposit. Your lease should state when the deposit will be returned, but
generally it is within 30 days of the tenancy. If you deduct monies from the
deposit, be sure to include a detailed description of the repairs needed and
copies of sales receipts. The law states that to withhold funds from the
security deposit, you must provide the tenant with paid bills or written
estimates for the damage. The security deposit should not be used for
normal cleaning unless this is clearly stated in the lease. If you allow pets,
you may want to collect an additional pet deposit.
Standard procedure for rent payment is to receive a deposit equal to half of the
total rent; the balance of the rent plus security deposit is usually due 30
days prior to the tenant's taking possession of the home. (Some owners require
a security deposit upfront before sending the lease.) However, you may want to
have a more lenient schedule for those who book early. You could ask for a
third upon booking, another third in January, and the balance a month prior to
booking. Some homeowners allow prior renters to "hold" their same week for the
next summer simply by sending a $100 check. Then the homeowners require a
definite commitment by December 1, when they send out the leases to returning
tenants and begin taking bookings for the unfilled weeks. The previous tenants
appreciate this system.
Be aware of the Federal Fair Housing Law, which states that "it is illegal to
discriminate on the basis of race, color, religious creed, national origin,
sex, age of children, ancestry, marital status, veteran history, public
assistance recipiency, deafness, or other handicaps."
Most homeowners send directions to the house along with the lease. If you don't
have specific directions, you can use an Internet source such as MapQuest to
get a printout of directions.
You can provide a key in several ways: mail the keys to the tenants, requesting
that they mail it back after their departure; arrange to have someone meet the
tenants at the house; hide keys on the premises in multiple places in case one
is lost.
Some homeowners install a lockbox at their house. It contains a key to get into
the house; inside the house, there are two additional keys for tenants. Tenants
are asked to put the first key back into the lockbox, just in case they are
locked out and/or lose a key. The combination to the lockbox is reset every
season and tenants are given the combination about a week before they travel.
Preparing Your Home for Tenants
Proper preparation for summer tenants will help to ensure a problem-free rental
period. Some suggestions include:
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Check appliances and smoke detectors.
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Consider hiring a pest control service to spray for insects prior to the rental
season.
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Provide an extra gas tank if you have a gas grill.
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Arrange for trash pick-up (twice a week is recommended) and a lawn-mowing
service.
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Be sure that the kitchen is well equipped and stocked (this includes some
staples such as spices, sugar, flour, etc.). Check to be sure that the
appliances are in good working order, and keep a drawer of instruction
booklets. A microwave is recommended.
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Consider durability and stain-resistance when picking out furnishings, carpets,
etc.
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Provide adequate lighting in all rooms and extra light bulbs.
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A VCR or DVD and cable are much appreciated by tenants.
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Provide an assortment of games, puzzles, and children's books.
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For tenant safety-and your own protection as homeowner-check steps, deck
railings, fences, indoor staircases and railings, etc. Do a total inside and
out inspection of your property for potential hazards.
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Lock up personal items in a footlocker or out-of-the-way closet.
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Leave a guest book so that tenants can record their comments and make
suggestions about activities, restaurants, etc. Other guests will enjoy reading
the comments. You can use their comments for your marketing purposes.
Tenants always appreciate a well stocked home. Include sufficient supplies such
as laundry and dish detergent, garbage bags, soap, toilet paper, and extra
shower curtain liners. You might arrange with your cleaning staff to supply
these materials during the summer. Also provide a generous supply of cleaning
products; tenants will leave your home cleaner if these products are available.
If you are in a position to select bed configuration, we have found that those
homes with at least one king- or queen-size bed and several twins seem to rent
the fastest. If you have a four-bedroom home or larger, two rooms with king or
queen beds will appeal to two small families (two couples with two children
each). Homes with all twin beds are slower to rent. And if you are purchasing
new mattresses, firm mattresses are recommended.
Most homes do not provide linens. However, if you have a large home with many
beds, you might consider providing linens, or at least arrange for a linen
service. We recommend at least two sets of linens for each bed. As more and
more vacationers travel long distances to their vacation home, it has become
more important to supply linens and towels. This is an added luxury that many
vacationers appreciate and would gladly pay extra for. Many homeowners put
plastic mattress protectors on the mattresses. (They are zippered, so that the
mattress must be inserted into the protector; the regular mattress pad goes on
top of this so that the plastic protector is not even noticed.) It's a good
idea to put pillows into cotton protectors as well; again, the pillowcase goes
on top of this. This keeps the pillows themselves stain-free. Be sure that all
bedding is clean and stain-free. This includes mattresses, mattress pads,
pillows, and blankets.
The most common request by vacationers is for a "clean" home. Many complaints
about cleanliness can be avoided by hiring a professional service to perform a
thorough spring cleaning before the season begins, as well as between each set
of tenants. We do not recommend that you rely on outgoing tenants to clean your
home sufficiently for the incoming tenants.
If it is not possible for you to respond to tenants' calls, arrange to have a
caretaker available to respond to any tenant calls during the rental season. Be
sure that tenants know whom they should call on in case a problem arises. As
part of routine maintenance, be prepared to replace items such as dishes,
glasses, and cookware from time to time.
We recommend that you have a block installed on your phone for calls outside the
local calling area. This will eliminate the chore of having to review a phone
bill for calls made and determining which tenants made the calls. Inform
tenants that they will have to use a calling card or use their personal
cellular phone for all calls outside the local calling area. If your local
phone is with Verizon, Call 800 870-999 to arrange for the block; there can be
a minimal charge for this service.
The vast majority of homeowners do not allow pets. Before you make a decision,
consider the fact that some tenants may have allergies that can be exacerbated
by the presence of a dog in the home during a prior tenancy. On the other hand,
we get many inquiries from vacationers who wish to bring their pet. Because
vacationers can specify "pets considered" in their search, you will get plenty
of inquiries. Inform tenants with pets of the pet policy on the local beaches.
Often no pets are permitted between Memorial Day until after Labor Day or
longer. You might ask for an additional pet deposit if you do allow pets.
Many homeowners leave notebook of important information for their guests. This
information includes emergency numbers; the location of fire extinguishers; the
trash pick-up schedule; any special instructions about the home and its
environment. Also include information about the beach and any beach passes that
are required; the nearest supermarkets; recommendations for local restaurant
(provide menus if possible); the best places to buy seafood, local produce, and
baked goods; and maps and guides to activities such as whalewatching and marsh
tours.
Treat your tenants like guests in your home. Some homeowners leave a "welcome"
gift for their tenants: fresh flowers, a bottle of wine, or freshly baked bread
from a local bakery. Tenants will appreciate these personal touches and are
likely to take better care of your home, And, best yet, they are more likely to
return next year!
If you would like more personalized help, you can hire us to tour your rental property with you. Our consultation service offers more in-depth feedback in person, can answer your questions with more knowledge after touring your home, and will compile all recommendations and price comparison analysis in a written report for your convenience. In addition, we offer a photography service to assist with interior, exterior and beach photographs. This popular service includes "staging" your home for marketing success.
(Cape & Islands only)
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