Many people consider landlords as passive investors who have to do no work to earn their income, but nothing could be further from the truth. Landlords not only have to put in regular effort to manage their tenants, but also have to go the extra mile just to find the right people for their property.
If you are a landlord who wants to minimize the chances of facing delayed rent, fraudulent people, and possible damage to your real estate, you may want to find ideal tenants from the get-go. It might seem like asking too much, but remembering a few tips and tricks can go a long way towards meeting this goal.
Want to learn more? Here’s what to look for in a tenant for an ideal rental experience.
Identity Verification
Not doing identity verification is one of the most common mistakes landlords should avoid before lease agreements. If you take applicants on their word and do not see proof of identity, you can be dealing with someone who is guilty of identity theft. This makes you vulnerable to a variety of risks that are not always limited to financial damage. That’s why you must do identity verification before choosing a tenant.
Clean Record
It is also crucial that your tenant has a clean record, which you can ensure by performing a criminal background check. This helps you steer clear of applicants who may have malicious intentions with the use of your property. Even if you are open to helping people rehabilitate, doing this check lets you open a point of conversation and ensures that you are dealing with someone who wants to make improvements in their life.
Good Credit
To reduce the chances of receiving delayed rent payments, you may want to look at the credit history of your potential tenants. This provides you with an insight into their financial responsibility and gives you an idea about how well they handle their money. Similar to getting landlord insurance that helps you cover your property in case of damages, knowing about your tenant’s credit report allows you to plan for possible scenarios in the future.
Reliable Employment
The next thing on the list is assessing your potential tenant’s employment history. If an applicant has been working at the same place for years, it highlights that they have a stable income. But if a potential tenant has a history of jumping between employers, it spells out red flags in bold letters. If you want to improve your cash flow management as an entrepreneur in real estate, this step is highly important.
Rental History
You can find out about applicants’ rental history by performing a tenant screening. This gives you a peek into your potential tenant’s past behavior and experiences with their previous landlords. For example, by looking at the tenant’s past rental payments, you can determine how consistent they might be at paying their rent on time. To avoid mishaps, this step is as critical as understanding the importance of preventive maintenance for your property.
Previous Evictions
When you run a tenant background check, you should ensure that you check their eviction history. This is a way to discover if they had major trouble with a landlord in the past. For example, in case a candidate has a recent eviction-related lawsuit on their record, it tells you that they might not be a reliable tenant. You can then also discuss your options with experts through an online legal services platform to protect your interests.
Good Communication
No matter the type of history that a tenant brings to the table, you always want them to be good communicators. Whether someone is facing trouble paying rent in a particular month or experiencing issues with property maintenance, good communication can help you prepare for these problems and deal with them quickly. This can also make it easy to establish tools like a rent collection service between you and the tenant for a more comfortable experience.
Through these suggestions, you can find ideal tenants who may contribute to a great experience for you as a landlord. You can also follow the same tips for multiple properties to ensure that you face little to no issues with your tenants.
