If you are a property owner who is looking to rent out your property, you could be wondering how you can go about finding good tenants. These are a few tips that you will probably want to keep in mind during this process.
1. Do a Credit Check
You want to find tenants who you can rely on to pay their rent on time. One good indication that someone is responsible for their money and bills is having a decent credit score. Even though you might not want to be overly strict about certain things on a person’s credit report, such as medical bills, you will probably want to look for someone who overall pays their bills on time.
2. Ask for Landlord References
An excellent way to find out if a tenant has a history of being a good tenant is by asking for landlord references. By calling previous landlords, you can get an idea of whether or not tenants took good care of the property and paid their rent as they were supposed to.
3. Consider Performing a Background Check
It’s never a bad idea to perform a background check on potential tenants. Then, you can avoid allowing sex offenders, drug dealers or others who have been convicted of committing crimes from moving into your property. Preventing this liability is probably something that you want to ensure to keep the property safe. According to JDP, “looking at a prospective tenant’s financial, rental and criminal history can help you predict whether he or she will be a good fit.”
4. Consider Allowing Pet Owners
Even though you might think that allowing pets in your unit is a bad idea, you might find that it’s not a bad idea at all. Allowing pets will enable you to choose from a much more extensive tenant pool. Pet owners might make better long-term tenants as well. Of course, you will want to protect yourself by having some restrictions in place regarding pets and by charging a pet deposit and pet rent, if applicable.
5. Make Sure That You Verify Background and Income
Of course, you’re going to need to verify that your tenants have an income coming in and that their income is sufficient to pay their rent each month. Ask to see proof of income, such as bank statements or paycheck stubs for the past few months, and consider calling and verifying employment before allowing anyone to move into one of your rentals.
6. Consider Using a Service
Some property owners who are looking to fill their rentals quickly and who do not have a lot of time or know-how might skip some of these steps. However, this could lead to you not having the best tenants in your properties, which can set you up for a host of problems. If you don’t have the time or know-how to adequately screen potential tenants, consider working with a property management company that offers tenant screening and placement services. Then, you can get professional assistance.
As you can see, there are a few things that you will want to remember when hunting for tenants for your property. If you follow these tips, you can help avoid any problems later and can help ensure that you have the best possible tenants on your property.