Did you know, 16% of low-income tenants cannot pay the full amount of their rent every month? So how do you prevent problems such as this from happening? The key is to make sure you find the right tenant for a rental property.
Doing so takes careful planning and follow-through. Let’s take a look at what you need to do to make sure you find the perfect tenant for your properties.
Set Your Own Rental Criteria
Well-thought-out rental criteria are key to making sure your future tenants will be a good match. A common requirement is that the tenant has a gross income of at least three times the monthly rent. This ensures they have the income to pay the rent.
You should also make sure they have steady employment or a co-signer with steady and sufficient income to ensure that your tenant will continue to pay their rent. You may also want to consider a minimum credit score.
Setting lifestyle requirements for your rental properties is also a good idea, especially for your primary residence. For example, will you allow smoking and pets in the unit? Some landlords also find it helpful to have requirements based on possible criminal history.
Get To Know the Applicant at the Property Showing
Showing the property provides a great time for you to meet and get to know the applicant either in person or virtually. As a result, you can better understand who they are and how to work with them.
Try to pay attention to how they act. For instance, do they show up on time? Do they seem friendly and nice to work with? These types of characteristics can indicate that they may be a pleasant tenant.
Check the Tenant’s Rental History
A tenant’s rental history can indicate how they will be if they rent from you. You should reach out to their previous landlords to confirm that the tenant actually rented from them and paid the rent on time.
In addition, ask if they took good care of the property and left the unit clean and in good order when they moved out. You can also check if they were disruptive to any other neighbors.
Research the Tenant Credit Report and Run Background Check
A credit report can be a great tool to learn about the tenant’s payment and debt history. This can be an indicator if they will pay on time and be able to afford your rent.
You may choose to run a background check to see if the tenant has a criminal history. Just note that there are guidelines for using criminal background information if you are evaluating someone as a potential renter.
Use a Real Estate Agent
A real estate agent can make the process easier. Instead of going through each of these steps, an agent could take the lead on it. In addition, having a property manager or real estate agent can allow you to have a more hands-off approach to renting.
In addition, they can make it easier to ensure that you follow landlord-tenant law and don’t risk legal trouble by infringing on tenants’ rights.
Find the Perfect Tenant for Rental Properties
Finding the right tenant for rental properties can be an overwhelming process. First, you need to make sure you identify useful rental criteria and that your potential tenant meets them. However, a real estate agent can make finding a tenant and property management much easier.
Contact Market Source Real Estate to get started with your rental property today.