Do you want to be a landlord? Becoming a landlord can provide you with passive income and the opportunity to provide a home to families who may not be able to afford to buy a home.
However, being an owner looking for tenants comes with responsibilities and risks, especially when it comes to finding good tenants.
You can learn how to find good tenants for your rental unit in this article. Keep reading to learn more.
Table of Contents
Conduct Credit and Background Checks
Conducting credit and background checks helps protect the rental unit from any potentially dangerous individuals. It can also help establish whether or not they are trustworthy and responsible enough to maintain a lease.
Credit reports detail a tenant’s financial history and can help determine their ability to pay rent on time. Landlords should also report rent to credit bureau.
Background checks look into criminal and personal reputation records. This verifies a tenant’s identity and reveals any past violations of the law, which may be an indication of their fit as a tenant. Credit and background checks, when completed correctly, give landlords the assurance in knowing that their rental unit is safe and secure.
Verify the Income of Potential Tenants
A proven track record of reliable income is a strong indicator of the tenant’s ability to pay rent on time and in full. To verify income, request specific documentation and explanations. Request recent pay stubs to confirm any given wage, and also use social media to verify employment.
Additionally, review bank statements to assess any potential deposits or withdrawals from their accounts. This is an important step in ensuring that the tenant has sufficient resources to consistently pay rental fees. It is also important to consider a potential tenant’s income-to-debt ratio – a factor that can lend credibility to their incomes and determine if they can handle rental payments.
Check Rental References
Checking rental references is an imperative tool for protecting your rental property. Take the time to talk to previous landlords, property managers, and neighbors. Find out firsthand what kind of tenant they were. Ask about things like:
- Cleanliness of the unit
- timeliness of payments
- noise disturbances
- Other issues that have arisen
Taking the time to check rental references can help you make an informed decision and save you the headache of dealing with problem tenants later on.
Conduct In-Person Interviews
By taking the time to meet your tenant applicants face-to-face, you can establish a rapport and get personal information that may not be included in their initial applications. During the interview, you can ask questions to gain a better understanding of their:
- financial situation
- work history
- behavior as a tenant
Also, ask other questions that help gauge their overall reliability. You can also assess whether the applicant will be a good fit for your rental community and any house rules and regulations that must be followed.
Learn How to Find Good Tenants
Learning how to find good tenants is a bit challenging. Good tenants are invaluable to any real estate rental business. When looking for tenants, focusing on quality over quantity ensures that each tenant is checked thoroughly to find the most responsible people around.
With proper research and application background checking, you can find the perfect tenant that fits your needs and promotes a safe and secure rental atmosphere.
Should you wish to read more articles aside from learning about what makes a good tenant, visit our blog.
Alan Roodey is a professional Author and contributor to many sites. He loves to write on various topics.