Tips for Selecting Tenants When You Rent Your Property
Owning several homes and renting them to tenants is a great way to create extra income. Some owners have just a small number of properties that they can rent while others have a large enough network of properties to generate a living, or even to be able to employ others to work for them. Tenants who will stop paying the rent, though, can cause serious problems. That’s why it is so critical to check out any potential tenants with as much care as possible. Following are some suggestions for finding out if the potential tenants will make good tenants.
Look for a Pattern of Behavior
In the case of a potential renter who has amassed a history of unpaid rent, evictions or leaving before the end of a lease, it’s an safe bet to conclude they are a bad choice. A person might be able to explain one eviction or such event, but anything more than that should set off a mental alarm.
Employ a Screening Firm
Some companies specialize in screening applicants for you. You give them the name of your applicant or applicants, and information about your property, and they make a recommendation on whether the potential renters would be a good bet for the property. They get the applicant’s background check and credit report so you don’t have to. It won’t get much easier than that.
Using websites that are easy to find online, it is easy to do a check on somebody in no time at all. This can give you an idea about the person’s reliability.
Get a Credit Report
Generally, you will be required to pay to get a copy of the credit report on somebody. The fee, however, will be very worthwhile considering the information you get. With a person’s credit report, you will be able to find out if they are good at paying their bills and whether they have a history of moving around very frequently. Having this kind of data by itself will not be a final indication of whether they’ll be a reliable renter, but they should give you an idea of what to expect.
Charge a Nonrefundable Application Fee
If a potential renter is willing to pay a token fee to go with submittal of the application, that is a good indication that they are more serious about renting the property than someone who doesn’t want to pay the fee. It is reasonable to credit the application fee towards the first month’s rent.
Let the Applicant Know That You Respect Honesty
If a potential renter is straightforward about their past evictions and other such problems, that is a good sign. Tenants who try to hide such mistakes are likely to continue a pattern of being untrustworthy. Many times, people only need a second chance. You could be the person to give them the chance they need if you feel they are honest.
Set up an Interview
The best way to get to know potential renters is to interview them. By talking face-to-face, you can generally learn a great deal about an individual. You can rely on your judgment and experience to see if they are being straightforward and decide if you think they are forthright with the information they present.
Finding the perfect tenants for your property or properties can be an involved process. It might even seem to be impossible or frustrating. But taking time to find the right renters before they move in could very likely make the critical difference between having a friendly and successful relationship and a relationship that ends up in court, or with you losing out on rental income. If you use your best judgment and careful attention, can select the right tenants.
Source : vacation