Is it hard to find a tenant and if you don't find one what to do?

Question

I am new.

Mariel DeVito · Answer

What are your qualification requirements? Make sure they are realistic for the market you are renting out to.

Melissa Ulloa · Answer

@Marjo Naci I agree with everyone's advice on finding prospective tenants. Typically it depends on the subject property, area and price. If you also post too early, (like 2 months in advance) the listing becomes stagnant, tenants question why the property hasn't rented.

Making sure the property is in rent ready condition when doing showings is also important. Clean, neutral paint colors with a maintained yard if that applies to your rental.

Posting on Zillow although it is a paid platform helps drive prospects to your rental.

You can also offer a move in special, maybe a 13 month lease but half off 1st month's rent it they move by May on qualified applications. Or $200 Grocery gift card?

I hope this helps this time of year shouldn't be too hard to rent a desirable property.

Nathan Gesner · Answer

Welcome to BP, @Marjo Naci!

It is not hard to find a tenant if you have your ducks in a row. I know what a good one looks like and how to screen out the bad ones. Rentals are in high demand so there are plenty to choose from.

I market online and include a few requirements so viewers can "pre-screen" themselves. For example:

"All applicants 18 or older must complete an application and submit to a full credit/criminal screening, provide verifiable income 3x the rent, and provide Landlord references. No pets, no smokers."

When they actually apply, I am looking at their full credit report, criminal history, address and identity verification, Landlord references, proof of income/employment, etc. If my standard is that they have a 650 credit score and they only have a 630, I deny them.

If m standards are too strict and I can't find anyone, then I'll lower them a little and try again.

You should consider reading some books to educate you on what a good tenant looks like and how to find one. There is a good one by Brandon Turner in the bookstore, or you can look into "Every Landlord's Legal Guide" by NOLO. I prefer the latter because it's written by a group of attorney investors and they include your state-specific laws. If you are in California, make sure you buy the California edition!

Jeff G. · Answer

It can be hard to find a *qualified* tenant, but generally speaking it's not hard to find potential tenants as applicants. If you're not getting any callbacks on your rentals it's likely you're priced above market. The way you prevent that situation is you figure out what prevailing rents are in your area and you price your rents accordingly.

This is not to say that you rent your unit for the mathematical average of rent in your area for a unit of similar square footage. Amenities matter. If your unit (or building) has more amenities you'll rent towards the top 20% of rents in your area. That is, assuming amenities and the desirableness of the area justify it. Similarly, if the apartment has seen better days and the area is sketchy, you'll lower your price to compensate.

Side note: you may want to read a book called Economics in One Lesson. It covers free market economics in an approachable way that won't bore you to tears. If you prefer audio books, it's on Audible.

New landlords often struggle to find *qualified* tenants that:

1. Have a reliable income source.2. Have credit scores that suggest they pay their bills on time.3. Don't have evictions in their history.4. Don't have anything alarming in their criminal history.5. Aren't going to beat up their unit.

Things to watch out for:

* Potential tenant is willing to pay you several months worth of rent up front. This is a big red flag and a sign of a "professional tenant." It's also the oldest trick in the book. Often, a tenant will pay those first few months in a large check or money order and then stop paying entirely. Tenants who do this have been evicted before (often many, many times) and may well know eviction law better than your typical eviction attorney. This can translate in to many lost months of rent.

* Large numbers of unrelated people sharing a lease. Sometimes this is normal, such as in an area that rents to college students. It's not a red flag by itself. But, a common issue is for several lessees to move out and stiff the remaining lessees with the bill. The remaining lessees will contest saying, "we can only pay x% of the rent this month." If you accept partial rent you may not be able to evict for the month in which you do. Also, you can end up with "musical tenants" who come and go in such numbers that it's unclear who is actually living in the property. That makes evictions harder and more costly.

What most landlords do is get something called a "joint and several liability clause" inserted into their rental contract. This makes every occupant equally liable for the rent. Also, savvy landlords will insert language into their rental contracts that basically say "nobody can live here that the property manager hasn't done a background check on." There is usually a small exception window of about a week to cover short term guests such as visiting family.

* Potential tenants with dirty cars. Messy is not a protected characteristic. If someone's car looks like they trash the interior, it's highly likely they'll trash your unit.

* Acts like an entitled a-hole from the start. A-hole is not a protected characteristic. If, during the rental application process, the applicant cops an attitude or behaves abrasively towards you or your management staff, it's a good sign they're unhappy with life and want to drag others down to their level of misery. Feel free to skip them.

Theresa Harris · Answer

Where you post an ad makes a differences as different websites are popular in different areas.  It also matters what your market is like (ie what is the vacancy rate).  Take good photos, have a good description of the property and make sure it is priced right (ie at market value).

Is it hard to find a tenant and if you don't find one what to do?

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