The most important part of becoming a successful and profitable landlord is finding the right tenants. When you have unreliable or destructive tenants, being a property owner can quickly become a nightmare.
When you find the right tenants, you can trust that your property will be well cared for and you will always get paid on time.
It may be easy to choose the first application off the top of the pile so that you can start making money off your property, but it could cost you in the long run. Without using the right tools and taking your time to choose the right tenant, you could end up losing money.
Going through a rental application is just one step for finding the right tenant. Let’s take a look at a few steps that you should take to find the perfect tenant for your property.
Checking on each candidate’s personal and credit history is a critical part of the decision-making process. You can request a copy of each applicant’s credit report with their permission. General credit reports will give you a look at any past-due debts, outstanding loans that could put an additional burden on tenants, and whether they pay their bills on time. A general credit report will not list any rental payment history, and landlords must pay extra for this vital information.
It should be a priority to make sure that any potential tenants have a clean criminal record. You don’t want to end up with someone with a checkered past or present living on your property. Criminal background checks can be obtained through your local police department for a fee.
A landlord’s most considerable expense includes repairing the damage done to their property by past tenants. Requesting a refundable security deposit can help to offset that expense. In many cases, if damage has been done to the property, the security deposit will cover the cost of repairs and is non-refundable.
With the power of technology, the search for the perfect tenant can be made much more accessible. However, never underestimate the power of a first impression. After your investigation is complete, you should invite your top candidates to an in-person meeting. You will be able to get a better feel for which candidate will be suitable for your property after you meet them.
Hire a Manager
Sorting through hundreds of rental applications can be an overwhelming process. Many landlords prefer to hand over the vetting of new tenants to a professional property management company. These firms specialize in finding worthy tenants for your property and can save you time and money during the application process.
Your top candidates may have a nearly perfect application and have made an excellent in-person impression, but it’s still crucial to complete your due diligence. Always ask for at least two personal references along with a recommendation from a past landlord. Take the time to make a few calls to references to ensure that all of your information is correct.