PICKING THE RIGHT TENANTS

Tenants can make or break an investment property. That is why picking the right tenants can alleviate stress and avoid common issues landlords face. Some problems are inevitable, but having quality tenants makes the job easier.

That's why I will share steps and best practices to implement the next you are looking for a tenant.

SCREENING PROCESS

Pre-screening potential tenants are crucial for all applicants. The pre-screening will run a criminal history, credit score, income, and eviction. This will help filter applicants without talking to them. The reason for this step is to avoid any disruption to your cash flow and advise not to consider anyone lower than a 650 credit score. Use a site like TransUnion to help you with this process. Please take note of the application fee when working with these sites, as the applicant should be responsible for these charges.

HOW TO FILTER THE BEST TENANTS?

Once you have a couple of strong potential tenants, it is time to reanalysis your options. As if the tenant was going for a second interview. Keep in mind that you are running a business, so please treat it like one. During the second screening, I encourage the landlord to take the time to talk or meet with the tenant. This could be done in person or virtually to ask questions and make observations like whether or not they showed up on time. Here are a couple of questions to ask a tenant.

1. 1.Do you have Pets?
2. 2.Do you smoke, or how many people living with you smoke?
3. 3.Why are you moving at this time?
4. 4.Have you ever broken a lease agreement?
5. 5.Where do you currently work, and how long have you worked there?
6. 6.Do you have any questions for me?

Notice I included logistical, pre-related, rental history, behavioral, income, and process-related questions. To avoid confusion and better communication, don't be afraid to be straightforward. Avoid questions regarding sex, race, color, religion, and anything that could be considered discriminatory. 

PLAY YOUR PART:

You must play your part as a landlord and respond to inquiries and questions promptly. Make sure someone has gone through the lease agreement with the tenant so both sides are aware of their responsibilities. Treat your tenants as a customer. Avoid your emotions dictate your action, as this could be costly in the long run, and respect renters' privacy.

FINAL THOUGHTS:

Be as detailed as possible with your tenant to avoid any misunderstanding. Remember to treat the property as a business to see it grow. Accept tenants who are friendly, have sufficient income, fill out all parts of the application, have sufficient credit score, arrive on time, and agree to house rules. Deny anyone who doesn't follow up with you, provides a fake reference and does not meet the first screening with flying color. Most importantly, when in doubt, always trust your gut.

If you have any further questions or would like to share your experience on the topic, don't hesitate to connect with me here on BP. I'd be happy to help you on your journey.

Goodluck.