Finding the ideal tenant for your rental property can be challenging. After all, you’re giving someone permission to occupy your home, pay the rent on time, and maintain it. The wrong tenant selection might result in property damage, missed or late rent payments, and legal difficulties. On the other side, choosing the ideal tenant can result in a hassle-free and successful renting experience. Here are seven things to take into account when choosing the ideal tenant for your rental property:
1. Employment and Income:
The tenant’s ability to pay rent on time is crucial. You should verify their employment and income by asking for recent pay stubs, W-2s or tax returns. Consider the stability of their job and whether their income is sufficient to cover the rent and other expenses.
2. Credit Score and History:
The tenant’s credit score and history can give you an idea of their financial responsibility. A high credit score indicates that the tenant has a history of paying bills on time and managing their finances well. Look for a credit score of 650 or higher, and review their credit report to see if there are any missed payments, judgments, or bankruptcies.
3. Rental History:
A tenant’s rental history can reveal a lot about their reliability and responsibility. Ask for references from previous landlords and contact them to verify that the tenant paid rent on time, followed the lease agreement, and took good care of the property. A tenant with a good rental history is more likely to be a good tenant in the future.
4. References:
Ask the tenant for references such as their employer, personal references, or previous landlords. When speaking with these references, ask specific questions about the tenant’s character, reliability, and responsibility. You may also want to ask if the reference would rent to the tenant again.
5. Criminal History:
Conduct a background check to look for any criminal convictions. Check for any violent crimes or drug offenses that could potentially put your property or other tenants at risk. You may also want to consider any history of evictions, as this could be a red flag for future behavior.
6. Pets:
If you allow pets in your rental property, consider the type, breed, and number of pets that the tenant has. Ask for a pet deposit or additional rent to cover any potential damage caused by pets. Also, make sure that the tenant is aware of any pet-related rules or restrictions, such as leash laws or limits on the number of pets allowed.
7. Communication:
Good communication is important for a successful landlord-tenant relationship. Look for tenants who respond promptly to messages and who are willing to communicate openly and honestly. Consider their communication skills during the application process, such as their ability to follow instructions and provide clear and concise answers.
To obtain more info regarding finding the best investment property or a suitable development site for your specific needs and goals, arrange a free strategy session with our buyer’s advocate.
A strategy session includes the following:
- Assessment of your current situation
- Discover property investment strategy options.
- Recommendations related to the right property investment strategy for your specific situation
- Confirm next steps
Call 0411 70 3682 or email to arrange a discussion.