My business partner and I are looking to begin investing in multi-family house sometime next year, What are some criteria to look for when looking for tenants? Also what are some rookie mistakes that first time investor make? What types of services do you use to screen potential tenants, such as credit score, employment, and criminal records?
Hunt around on BP for information on tenant screening. A lot of the buy and hold people on the site have clear written policies, its key to have clear criteria and procedures for screening tenants and then to apply these fairly and consistently.
Yeah use the search function.
But if there is one piece of advice that I wish I was given it is this: "It is better to have no tenant, than a bad tenant."
Here is a great blog I found that sums up most of the steps and things to look for:
This was from a post by Jason Bartley here on BP.
Thank you for the advice and blog post.
Hi @Luis Rondon ! There is a really great guide on Tenant Screening right here on bigger pockets. Here is the link: http://www.biggerpockets.com/renewsblog/2013/01/27...
It was written by @Brandon Turner and really breaks things down simply. There is also an online tool to check credit by going to Resources - Tenant Screening. I haven't used it yet but I will be this month as I have a vacancy and am currently getting tenant applications.
One great tip that helps me is to change your voicemail to describe the apartment as well as a few initial screening comments (no smoking, no pets, rent is $1000/mo., etc.). That way you don't have to waste time talking to people who don't meet your initial qualifications. They will only leave a voicemail if they qualify!
Good luck and happy investing!
@Luis Rondon you also might want to speak to a property mgmt company and see if they can convince you to use them to manage the process. :)
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!