How To Find A Good Tenant
Finding a good tenant is so important if you have a home or a condo to rent. If you are reading this you probably have a piece of investment property that you either paid a sum of money for or are paying monthly mortgage payments for. Plus, I am sure you want someone who is going to take good care of it while making their rent payments on time. Seems like this is an easy thing to find? Not!
Talk to anyone about tenants and you will hear horror stories. My least favorite story came from a lady in the bank when we were signing on our recent investment loan. She told us that the people she rented to painted her brand new house with horrible colors, sawed the doors in half and ripped the kitchen cabinet doors off. What a nightmare!
No one can know for sure what the future will bring with a tenant but the past can speak volumes about people and people "tend" to generally repeat past performance.
So here's a few suggestions that have helped us find good tenants.
1. Price the property reasonably. Do a little research and make sure you are in line with other similar rentals.
2. Make a checklist of what the perfect tenant would be for you. Include such things as salary, credit, pets, etc.
3. As inquiries come in, talk candidly to the people. Tell them what you are looking for and have them give you feedback.
4. Ask them specific questions about their jobs, rental history, and credit score.
5. Always follow up on all references. Verify employment, salary and especially talk to previous landlords. Ask previous landlords if they paid their rent on time and if they left the apartment in good condition.
6. As a final check, always do a criminal background check.
If all of these items check out and you are happy with the results, be sure to get a firm commitment in the form of a signed lease, a substantial deposit, and communicate a good understanding of what you expect with the tenant.
Performing periodic inspections of the home can be a great idea and one that will keep the lines of communication open during the lease period. This can also help to ensure that the tenant will continue to take good care of the home.
Bob Lipply not only does personal real estate investing but he also buys and sells Tampa Bay Real Estate with his team of 4 agents.
Comments (2)
I agree with your post. It's hard to overemphasize the importance of having a good screening process based on facts and experience. With experience I've gotten better at picking out problem tenants from good tenants. Every once in a while a tenant will surprise me, but it's not often. Good post!
Michael Rogers, over 16 years ago
Nice post, Bob! These are some great tips for screening, however, even the best screening doesn't guarantee a quality tenant. Writing a strong lease that protects you is essential for landlords!
Joshua Dorkin, almost 17 years ago