Renting Your Property? Here’s How To Find Good Tenants
September 13, 2009 by yen
Filed under Featured, Real Estate Blog
As a realtor, I sometimes receive request from my clients who want to lease their properties to help find tenants for them.
Recently one of my clients, Anne, came to my office, distraught. She told me that her tenants, a family of 5 who had been leasing her second house, was delayed in the payment of rents for two months now. Anne was asking for my advice on what to do.
Anne’s problem is not uncommon for landlords who rent out their properties to tenants.
If you are renting your property or planning to engage in that business, finding good tenants is key to your success as a landlord.
Finding a good tenant is not as simple as a walk in the park. And do not believe your prospective tenant when he tell you that he will pay the rent on time, or treat your property with outmost care.
You have to conduct first basic verification or background check on your prospective tenants before you close the deal. Here’s how:
1. Credit check. Do a credit check with a prospective tenant. Call the credit association in your area, with the prospective tenant’s prior permission. Ask the tenant who are his creditors and inquire from these creditors the paying history of the tenant.
You should never rent to someone with a poor credit history. If the prospective tenant refuses to allow you to run a credit check, it is a sign that you will have problem later on in collection. Don’t waste your time with him, and move on to the next applicant.
2. Personal references check. Ask for at least 3 character references and call these people about the prospective tenants. This is to ensure that the applicants are good and responsible people.
3. Employers check. Talk to the tenant’s previous and current employers to make sure that the applicant is employed and that he is paid the salary that he is claiming to be.
4. Previous landlords check. The best information about a tenant comes from the previous landlord. Inquire from the previous landlord if the tenant is a good payer, e.g. if he paid the rent on time, damaged the property, disturbed the neighbors, or created other problems.
Be creative about your due diligence. Remember once again: Having good tenants is key to your success as a landlord.
This is a very helpful article for a person like me who sometimes rent my excess one door apartment unit.
Thanks for this.
This is a Landlord’s nightmare to get in bad tenants and getting them out is so much harder, especially if you have a mortgage to pay and no liquid assets avaialble it could cripple you. The advice you are giving is very credible and useful for all those embarking on the Road to renting out their properties.