Finding the right tenant is a critical decision when you own a property. As a landlord, the quality of your tenants can significantly impact your rental property’s success, from its long-term value to your peace of mind as a property owner. In this blog post, we’ll provide essential tips and tricks for property owners to help you find the perfect tenant who respects your property and pays their rent on time.
The Benefits of a Great Tenant
Before delving into the tips for finding the right tenant, it’s crucial to understand why this process is so important. A great tenant brings numerous benefits to property owners. They:
- Pay on Time: A reliable tenant ensures a consistent income stream for property owners. Timely rent payments are essential for maintaining your property and covering expenses.
- Take Care of the Property: Responsible tenants will keep your property in good condition, meaning fewer maintenance costs and an overall property value increase.
- Minimize Vacancy: Good tenants tend to stay for the long term, reducing the downtime between occupants and vacancy-related expenses.
- Lower Legal Hassles: A tenant who follows the lease agreement and respects your property helps avoid legal issues and conflicts.
Tips for Finding the Right Tenant
Here’s a list of actions you can take to ensure you’re choosing the right person to be a responsible and reliable tenant:
- Set Income Requirements: One of the most important aspects to consider when choosing a tenant is ensuring they can pay monthly rent. As a landlord, consider setting a minimum income requirement for those looking to rent from you. It’s a standard rule of thumb that tenants should bring in three times their monthly rent in income. If your tenants aren’t bringing in this much each month, consider adding a cosigner to minimize the risk of not making rent each month.
- Check References: You should also make sure you’re contacting the tenant’s previous landlords to make sure that they paid rent on time and left the place in good condition. You’ll want to make sure that you’re speaking to the person’s actual landlord and not someone posing as one. You can confirm the incorrect number of years they lived there, and if the landlord corrects you, you know you’re speaking to their actual landlord.
- Run a Background and Credit Check: Landlords might also consider running a credit check, and if their credit score is above 700, they’re financially responsible enough to rent. Criminal background checks can also be helpful to ensure that there isn’t any history of eviction for the tenant.
- Ask for a Security Deposit: If you take a large security deposit before your tenants move in, you can ensure that you’re in good standing if your tenant causes damage to your property. You’ll want to be familiar with your state’s laws and that you’re only taking the maximum or less from them for a security deposit.
- Maintain Mutual Respect for Tenants: While your tenant is required to hold up their end of the lease agreement by paying their rent on time and not damaging the property, you, as a landlord, must hold up your end of the deal, too. You’ll want to ensure you’re keeping up with maintenance and repairs and communicating with them if you need to enter their unit for any reason.
Contact Steady Real Estate
Finding the right tenant for your property is a meticulous process, but it’s worth the effort. A great tenant will enhance your property ownership experience and contribute to your financial success.
If you’re looking for assistance finding the best tenants or other real estate help, Steady Real Estate can help you. Our team provides comprehensive property management, apartment turnovers and enhancements, tenant placement services, and more.
Visit our website to learn more about us and our services and let us help you with your real estate needs.
Sources
How to Find the Perfect Tenant: Tips for Renting Your Space | Northwestern Mutual
How To Find Good Tenants For Your Rental Property | SmartMove (mysmartmove.com)
Steady Real Estate | Your Woburn Property Management and Real Estate Experts (steadyre.com)