The Secret of Finding and Keeping Good Tenants
To have a reliable renter who stays for an extended period of time is the goal of any landlord. If you are the type of person who is reading this piece, finding the appropriate renter and maintaining them may feel like a challenge; however, it does not have to be the case.
Because your rental property is a business enterprise, it is in your best interest to have your premises filled. Therefore, performing your due diligence and being well organized are two of the most important components in attracting and retaining a decent tenant.
You need dependable tenants that pay on time and in full, month after month, in order to have a steady flow of income into your business. A high percentage of vacancies in your rental property disrupts your income flow, puts your investment at risk, and costs you both time and money.
The first thing that needs to be determined is what constitutes a good tenant.
It is not a person’s personality that makes them a good renter; rather, it is their objective facts.
The following is a list of characteristics that, when combined, make for the ideal tenant:
• A Consistent Income Each Month
• A Record of Past Payments
Does the prospective renter have a solid history of timely payment of rent and other obligations to past landlords? A responsible tenant always pays their rent on time, and in some cases even ahead of schedule.
• A Respectable Credit Rating
When searching for tenants, landlords should take into consideration the applicants’ credit scores, as this number is typically indicative of the applicants’ ability to handle their finances.
• References
A prospective tenant’s references can be asked for by a landlord. This can give your insight into the kind of behavior they display with relation to how they feel about their employers, their neighbors, their rental agreements, and their payments.
• There is no history of evictions or criminal convictions.
When you screen a candidate, you get a useful overview of their habits, which can identify prospective inclinations about your property.
The question now is, how can you bring in great tenants?
Step 1: Compile a list of items to check off and appropriate application forms
It is important for you, as a landlord, to get off on the right foot with potential tenants when you begin a relationship with them. Demonstrating to the application that you conduct business in a professional manner would, right off the bat, establish a positive precedent for the landlord-tenant relationship.
Obtain the most fundamental of your personal details for the application. Make sure it contains the following information: the full name of the applicant or applicants; the applicant’s or applicants’ Social Security number and birth date; the applicant’s or applicants’ current address and preferred contact information; the applicant’s or applicants’ current employer and contact information; the applicant’s or applicants’ current monthly income; the applicant’s or applicants’ current payments; personal references outside of the family;
• Credit references from the present and the past
• Employment references from the present and the past
• A statement allowing enquiries into references and credit
These are standard forms of inquiries that will be expected from potential tenants. If they hesitate to answer or leave a section blank, this could be a warning sign; however, you should still offer to clarify the form to them or answer any of their concerns before making your evaluation.
Step 2: Distribute your advertisements in the appropriate venues.
When trying to find a tenant in this day and age, your best bet for reaching a large number of potential applications is to post the vacancy online. To name just a few websites, there is Craigslist, Facebook Marketplace, and Zillow (all of which require a nominal payment), among others. Create an engaging listing by penning a detailed description, uploading high-quality images, and including your contact information; then advertise it on websites that specialize in the rental of houses. You can reach a wider audience by posting your rental listing on social media platforms that are specific to property rentals in your area; this will increase the likelihood that the correct tenants will see it.
You might also think about offering a virtual tour of your property to attract a broader pool of candidates in this pandemic that we are currently experiencing.
Step 3: Establish Unambiguous Goals and Objectives
Due to the fact that the renter will be living in and taking care of your home, it is essential to communicate the expectations in a manner that is crystal obvious and open with the tenant. This covers details such as: the pet policy, smoking restrictions, and the rental duration in its entirety.
By explaining your position up front, you may save time fielding the same questions over and over again and make it easier for prospective tenants to comply with your policies. This will improve your chances of finding tenants who are a good fit.
Step 4: Carry out an exhaustive check of your background.
At Richey Property Management, we begin the application process for each prospective tenant with a comprehensive background check. During this step, we look into the applicant’s credit history as well as their criminal and previous rental experiences. The processes and actions required in doing a background check on a tenant can be difficult to decipher without the assistance of a screening company. If you conduct a thorough background check on someone, you will obtain useful information about their references and criminal history.
Landlords have a better chance of avoiding an expensive eviction, which may cost an average of $3,500 in legal fees and other associated expenses, if they perform exhaustive tenant screening checks on prospective tenants. A more comprehensive tenant screening check can help landlords better understand the risks that may be associated with a potential renter. While some landlords are content to simply review a credit report when screening tenants, other landlords may feel more comfortable conducting a more extensive check. This necessitates looking at more than just an applicant’s credit record.
Step 5: Ensure there is mutual respect between all parties in order to keep good tenants.
When you do locate a decent tenant, maintaining a polite relationship with them will help to guarantee that they remain there for the longest time possible. They anticipate that you will keep up with maintenance and repairs in the same manner that they anticipate that they will pay their rent on time and maintain the property in excellent condition. A lease agreement that specifies all of your rules and regulations, such as the number of occupants allowed in the rental unit, the date on which rent is due, the penalties for late payments, the rules regarding pets and smoking, and the requirements for renter’s insurance, can help you avoid future confusion and misunderstandings.
• Under promise and over-deliver, as it is essential to give your tenant the best customer service possible.
• Outline any and all provisions to the rental agreement in the lease agreement.
• Conduct a comprehensive background check.
• Fulfill your landlord obligations by maintaining the property and following through on repair requests. • Under promise and over-deliver, as it is essential to do so.
Employ a Company Specializing in Property Management.
Every landlord is faced with the difficulty of figuring out how to find good renters for their properties and how to keep those tenants. At Woods Property Management, we are a team of professionals who have the experience and resources to assist you in finding and signing excellent, long-term renters. We are here to help you locate the perfect tenants for your property.