4 Tips for Finding a Good Tenant for Your Investment Property

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Investing in property is often cited as being a great source of passive income. However, the reality of being a landlord isn’t all that easy. It will require a massive time commitment and pragmatism in the face of various challenges.

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One way to make your life as a landlord easier is to invest time in finding the right tenant for your property. Good tenants aren’t just those who pay their rent on time, but people that will look after your property like it’s their own, communicate any issues in a timely manner and be good neighbors to those around them. Finding good tenants that will also remain at the property for a longer period of time works in a landlord’s favor, but finding these people is often easier said than done, especially when operating in a renter’s market. Here are a few tips to get you started:

 

Follow the Law

Landlords need to treat all potential tenants equally when considering rental applications. There are various laws in place to prevent discrimination against tenants based on race, nationality, religion, sex and disability. Be sure you are following all the laws in place when doing a tenant screening and remember these may vary from one state to the next.

 

Be Mindful of Their Credit History

It is important to find a tenant that is financially responsible. You’ll find a person who pays their bills on time is likely to pay their rent on time too. It is worth getting a credit check carried out on any potential renter. Verifying their income is also useful as tenants should ideally earn three times as much as their monthly rental.

 

Criminal Background Checks Are Important

While it might seem a little far-fetched criminal records are public information and can be viewed at various courthouses. In most cases, these checks will only raise minor offenses but it’s still worth being sure. Bear in mind that those with a record may falsify information so be sure that the ID they present you with is valid.

 

Investigate Their Rental History

If possible, you should ask potential tenants to provide references from previous landlords. However, don’t just take these at face value and bear in mind that if they are a bad tenant, their current landlord may be looking to get them off their hands. It’s important to ask pertinent questions when following up on references. Questions may include whether rent was paid on time, how long they stayed at their previous residence, what condition the property was left in, and whether the tenant provided adequate notice when terminating their lease.

Ultimately, no screening method is fool-proof when it comes to finding optimal tenants for a rental property, but there are certain factors that should be kept in mind. Following these tips should help increase the likelihood of a landlord finding a renter who is trustworthy, reliable and responsible when it comes to taking care of their property. Investing time and effort into finding a good renter while also ensuring you follow your legal obligations has the potential to save you a great deal of stress in the long run.

 

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