How to Find the Perfect Tenant for Your Real Estate
Posted Monday, December 9, 2013
Of the many joys of property management, good tenants top the list. The top of the headaches list? Bad tenants. Problems from failing to pay the rent in a timely manner to inadequate cleanliness to inconsiderate community habits plague the rental world of real estate.
You can find the best tenant for your vacancy by following these few steps.
Having plenty of applicants to select from means that you can find a good match for the vacancy. So advertise to collect a crowd of prospective tenants. It’s worth the extra time spent showing the property to more people to find a reliable tenant.
- Spread the word among your friends and family that you have a space available. Through personal connections, you are most likely to find a good match for your space.
- Put a sign up outside the unit. People living in the neighborhood, or visiting family or friends in the area, are the most likely to want to rent there.
- Put listings for your real estate in online sources (such as craigslist).
Review Rental Applications with Care
While there are no guarantees, a few practices can help you screen applicants for your real estate vacancy.
- Check Rental History: If your prospective renter has moved every three months, it’s worth asking why. When you call to verify rental history, check with former landlords to find out if there were any issues.
- Check Credit Reports: Your prospective tenant might proclaim that he is independently wealthy, but even if he is, that doesn’t mean he pays his bills on time. That said, remember that credit reporting agencies aren’t always accurate, so do allow for issues to be explained.
- Verify Income: Your tenant should have a steady means of meeting his rental obligation. Request copies of recent pay stubs or other income to ensure that the tenant can reasonably afford the rent you are charging.
- Check Job References: Ideally, you want a tenant who has a stable job history.
Of course, as a landlord you already know that the Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), or disability.
If you are investigating new rental property purchases or looking to sell some of your current assets, I can help. Give me a call today.