Are you facing difficulties in finding the right tenant for your rental property? If so, you’re not alone. It’s tricky to find quality tenants who pay rent on time and take care of your property.
Moreover, the process of finding prospective tenants isn’t straightforward. From performing due diligence to negotiating rent, there are several factors that come into play and require your consideration.
While there’s no screening method that can guarantee a perfect choice, here are five tips that can improve your chances of picking the right tenant for your rental property:
Ignore stereotypes—be open-minded!
You should never judge a book by its cover. In this context, the tenants are the book and the cover could be their race, color, religion, nationality, disability, and other markers of identity. It’s also prohibited by law to deny a tenant on these bases.
Evaluate each of your prospective tenants with an open mind to ensure that you don’t miss out on good tenants due to stereotypes.
Perform a thorough criminal background check!
This goes without saying, but it’s extremely important to conduct a proper background check to ensure the tenant doesn’t have a history of criminal activities.
Criminal information is public record and easily accessible. Moreover, make sure you validate their ID as an added safety measure.
The employment history speak volumes
It’s always better to hire a tenant with a stable employment history than one who keeps switching their jobs. If you see they have a pattern of moving jobs, it’s likely that this is going to be the case in the future.
This not only increases the risk of vacancy if they move out of their job, but also casts doubt on their ability to keep up with their monthly rent.
The mandatory creditworthiness check
Learning about the credit history of your prospective tenant will help you understand their payment habits. This will provide you with a good idea of whether they will be able to pay the monthly rent on time, regardless of their levels of income.
For instance, a tenant who earns $4,000/month with zero debt is a better candidate compared to a tenant who earns $6,000, but has to make $4,000 in debt payments every month.
Most landlords find a score between 600 and 650 satisfactory, as renters usually don’t typically have a mortgage history to increase their creditworthiness.
Watch out for red flags
You should always look for the signs that indicate that a prospective tenant could be a problem. For instance, if they’re uncomfortable about a credit check or have a poor credit history, it shows that they have had trouble paying their bills in the past.
Similarly, if they’ve got a criminal record or a previous eviction history, you should look elsewhere. If they provided incorrect information in the application form, move on to the next applicant.
Hire a property manager
As mentioned previously, finding the right tenant can be an extremely overwhelming and time-consuming process. Moreover, it requires a great amount of attention to detail and effort to ensure that you made the right pick.
Hence, it’s recommended that you hire the services of a property manager. They will help you choose a reliable and trustworthy tenant to ensure that you’re able to earn consistent rental income from your rental property.
Even better, you should look for a professional rental property management service provider who can cater to your specific requirements. It will allow you to enjoy passive income while they handle all the work on your behalf.
At KH Consultants, we help residents of Brooklyn rent their properties for profit with minimum hassle. Based in New York, we’re a proudly women-owned business that offers professional property management services to our clients
To request a quote for our services, contact our representatives at (347) 987-4063.