If you have been in the property investment sector for a long time or are just starting, you should know that there are good tenants, and then there are nuisance tenants. We cannot emphasize the importance of having the right tenant for your properties. This is the only way your business will thrive and ensure that everyone lives harmoniously.
However, you cannot easily predict the behavior of a tenant by just looking at them. It takes some effort and research to filter tenants and only select the good ones. Here are a few useful tips to guide you through this process.
Ensure that you are a good landlord
The first and most important tip before embarking on your search for the right tenants is to ensure that you are a good landlord. Ensure that you are following the Fair Housing Act rules and regulations which protect tenants from discrimination and unfair treatment. The worst mistake you could make is to select tenants based on their race, religion, gender, or nationality as the law suggests that you should treat everyone fairly. Discrimination will only result in choosing the wrong tenants while leaving the good ones out in the name of not liking them based on the highlighted factors.
Check their credit report
Ensure that the tenants have a good credit report, as this shows that they are financially responsible. One of the significant challenges that landlords face with their tenants is failed or late rent payment. If the tenant pays other bills on time, there are high chances that they will pay rent as per the issued timeline. While at it, check the tenants’ income to ensure that they can afford to pay for the house. Ideally, their income should be three times the amount of rent.
Check their criminal background
Never make the mistake of allowing criminals in your rental property unless you want your investment to go down in a matter of time. Luckily, criminal records and information are available online, and you can use them to ensure that the tenant has never been in any crime. If they have, make sure that they have transformed. The last thing you want is to have police raiding your property in the search for one person. That could ruin your reputation, and tenants will no longer want to rent your houses in the future.
You cannot go wrong with professional tenant screening services as this will not only help you save time, but also, accuracy is guaranteed. The experts have the tools and resources needed for the job and can do it within a much shorter time than you would. With the right service provider, you can trust them to provide you with a comprehensive tenant credit report, history, and criminal background.
Follow your instinct
Even with all these measures in place, you should always follow your instincts. If you feel something about a particular tenant is not right or does not add up, then let them go.
Finding good tenants is hard, but it does not have to be. Follow this guidance, rest assured you will have a smooth and worthwhile experience.