What Realtors Wish Landlords & Tenants Knew About Rentals

Last month we reviewed the Blueprint for a Renter Bill of Rights, the Federal Government’s recommendations for how to make rental housing more equitable and expand renters’ rights when it comes to rent increases, lease terms, and evictions. This month we’ll take a look at the rental market from the Realtor® perspective.

McEnearney Associates recently convened a “Masterclass” with several of our top agents who have made a name for themselves as rental experts – both for tenants and landlords – as well as staff from our Property Management team. It was a lively discussion and we’re sharing some of the tips and processes that Lauren Budik (McLean), Ann Duff (Alexandria), and Sarah Picot (Arlington) believe will make the rental process more efficient and less stressful for everyone involved.

Stay tuned next month for tips from our DC and Maryland offices!

FOR TENANTS

DON’T: Start your search too early. We understand, it’s exciting to imagine your next home and see all the options out there. But if you are looking to move in May and want to start looking in January, you will be spinning your wheels. Most leases require a 60-day notice to vacate, and the landlord will look to turn them over quickly. Most landlords will not hold a property if you’re not ready to make a move on their terms.

DO: Understand that most leasing documents are standardized and will have to be completed before or during the rental search. Expect to sign a representation agreement that spells out the responsibilities of both you and your agent, review, and sign disclosures about the property, and understand that leases are standard forms used by most landlords and brokerages in the area. Changing boilerplate clauses or asking for too many changes in terms likely won’t be possible.

DON’T: Hide or be shy about sharing credit issues. Financial setbacks happen and the best way to work around them is to let your agent know if there are credit dings that could affect your rental application. Your agent will help to strategize on the best approach, such as offering to pre-pay several months of rent in advance. A letter explaining how your credit was affected and what you’ve done to repair it can go a long way in assuring a cooperative landlord that past issues have been resolved.

DO: Have a good amount of cash ready for securing a property. Between the first month’s rent, security deposits, pet fees, building move-in/move-out fees, and other moving costs, you may need an outlay of several thousand dollars just to secure a lease. Make sure you’ve set a reasonable budget and saved your money for those immediate payments.

DO: Work with a Realtor®! You’ve heard it before: inventory is extremely tight and great properties go quickly. Having a leasing agent working with you in your housing search ensures that you get access to listed properties quickly (and safely), that your application will be submitted correctly with the proper documentation. Helping clients find the right home is what Realtors® do every day so use their expertise to your advantage in this competitive market!

FOR LANDLORDS

DO: Follow all Fair Housing requirements. Your Realtor® is bound by a professional code of ethics and will ensure that the public is treated fairly during the leasing process of your property. Fair Housing violations can be reported to the local Realtor® association and may result in fines. Learn about your Fair Housing requirements and explore resources for Virginia, DC and Maryland, and ask your agent for clarification on anything you have questions about.

DO: Understand the difference between pets, emotional support animals and service animals. Tenants with registered support animals and service animals do not fall under “no pets” provisions. Virginia has a helpful brochure that outlines what qualifies for what and how tenants with service animals must be accommodated, and you can see DC and Maryland guidelines here.

DO: Consider accepting Housing Vouchers. The lack of affordable housing is a growing problem throughout the country, and is felt by many in our region. Housing vouchers – awarded to eligible tenants after a complex and thorough screening by government and housing officials – ensure that low-income, elderly, disabled and other housing-insecure people have access to a decent, safe and sanitary place to live. Landlords who participate in voucher programs will receive government subsidies for a portion of the rent and tenants will pay the difference based on their voucher award. This ensures consistent payment with tenants who have already passed federal and local screening processes.

Because of the lack of landlords who participate in subsidized housing programs, there are some voucher recipients who have been waiting several years to find an affordable home match. We encourage landlords to speak with their agent to find out how they can be part of helping many deserving tenants find a place to call home.

DO: Work with a Realtor®! It may seem like a landlord could put a “For Rent” sign in the yard and wait for qualified applicants to roll in without any help from an agent. But good Realtors® know that the right presentation, careful application screening processes, and a professional approach to onboarding a tenant can make all the difference between a smooth move between tenants and a logistical leasing nightmare. Count on the expertise and market knowledge that a seasoned agent brings to assist in the successful renting of your valuable investment!