Finding the Right Tenants for Your Rental Property
The number one success factor of being a landlord is how reliable your tenants are. Do they pay on time, and in full each and every month? Do they treat your property with respect and keep it in good condition?
Here are a few tips on how to find (and keep) the right tenants for your rental property:
- Trust your instincts: No matter where you find your tenants from, or how many you interview, at the end of the day you have to trust your instincts. If something seems a bit ‘off’ or you get bad vibes from a potential tenant, then keep looking.
- Advertise: There are many different places to advertise, but of course, online is one of the best because you’ll reach a wider tenant pool. Social media, rental sites, locator sites, online bulletin boards are all great places to start. It’s not just about where you advertise, but how your ad sounds. Make your property sound intriguing so people will want to come out and look at it. There are many great examples online.
- Use a realtor: There are some realtors that specialize in helping landlords find suitable tenants. They will take care of advertising and showing the property. While realtors can provide an invaluable resource to finding tenants, keep in mind that they will charge a fee for their services.
- Understand the landlord and tenant laws in your state: Being a good and responsible landlord will attract good and responsible tenants. This means you must familiarize yourself with your local landlord/tenant laws. Understand your rights and responsibilities as well as those of your tenants. This includes knowing the fair housing laws, which state that tenants cannot be discriminated against because of race, religion, etc.
- Do a background/credit check: It is imperative that you check the references and credit rating of each potential tenant. While it’s true that references can be falsified, credit ratings don’t lie. It is a quick check online, and it’s free of charge.
- Have a lease agreement ready: Before you interview any potential tenants, you’ll need to draft a lease agreement so it’s ready when you need it. There are some great samples online that you can use as a guideline. You can also go to your lawyer to draft one up (although this is the more expensive option). If you know other landlords, you can ask for their advice and guidance. A realtor may also be able to help.
- Hire a property management company: A reputable property management company can find you qualified tenants and so much more. They can take care of the advertising, interviewing and application process, as well as perform regular maintenance duties on the property. Many landlords find that hiring a management company is an invaluable resource that they can’t live without. This is especially valuable if your property is a far distance away from where your residence is.
Finding the right tenants for your income property will take some time and effort; but it is well worth taking the extra time to make sure that you have selected the right people.
Benefit National is a full service property management company that can take care of all of your property needs, including finding tenants. Visit the website today for more information.