The most important part of becoming a successful, profitable landlord is finding the right tenants. When you have unreliable or destructive tenants, being owner can quickly turn into a nightmare.
When you find the right tenants, you can be sure that your property will be well maintained and that you will always be paid on time.
It can be easy to pick the first app on the top of the pile so you can start making money with your property, but it could cost you money in the long run. Without using the right tools and taking your time choosing the right tenant, you could end up wasting money.
Going through a rental app is just one step in finding the right tenant. Let’s take a look at a few steps you can take to find the perfect tenant for your property.
Checking each candidate’s personal and credit history is an essential 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 an overview of past due debts, outstanding loans that could increase the burden on tenants and if they pay their bills on time. A general credit report does 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 tenant has 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 from your local police department for a fee.
A the owner’s biggest expense includes repairing damage to their property caused by former tenants. Requesting a refundable security deposit can help offset this expense. In many cases, if damage has been caused to the property, the security deposit will cover the cost of the repairs and is not refundable.
Face to face meeting
Thanks to 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. Once your survey is complete, you should invite your top candidates to an in-person meeting. You will be able to get a better idea of the right candidate for your property after meeting them.
Hire a manager
Sorting through hundreds of rental requests can be an overwhelming process. Many landlords prefer to entrust the selection of new tenants to a professional property management company. These companies specialize in finding suitable tenants for your property and can save you time and money during the application process.
Your top candidates may have a near-perfect application and have made a great impression in person, but it’s always crucial to complete your due diligence. Always ask for at least two personal references with a recommendation from a previous owner. Take the time to make a few reference calls to make sure all of your information is correct.