Being a landlord can be a profitable and rewarding endeavor, provided you can find the ideal type of rental tenants. Otherwise, your happily ever after can become a tale from the dark side.
Providing quality homes for people who take pride in caring for them is a great feeling, and can quickly increase your bottom line. So lets look at a few ways you can find ideal rental tenants and avoid the others.
On Time Rent
Whether you are still paying off the loan on your leasing property or not, getting your rental fees on time is very important. If you have to wait month after month for days or even weeks past the due date, you run the risk of financial ruin at the worst and constant stress at best.
There are a few good ways to determine if someone will pay their rent on time. One of the most obvious is checking their rental references. Call everyone on their referral list and do not be timid about inquiring about timeliness of payment.
Another option is to research their current employment and check their credit. More and more people in leasing property management are requiring a credit check in addition to the rental application. Of course, while this is not a surefire indication of their willingness to be on time, it can give you some insight into their financial habits. Time in obtaining these reports can be a challenge to the acceptance process, its still worth considering.
It is so hard to determine how well someone will care for your leasing property simply by looking at them, or even their rental application. Some landlords will actually take the time to drive by the current address to get a feel for how well the place is being cared for, but that only gives you an outside picture. Inside the home could be a completely different story.
This is one place property management professionals come in very handy. These are individuals skilled at vetting potential rental tenants and if you have several properties, it is worth the small percentage to have professional assistance. If you are going it alone, this is another place where references are definitely in order.
When everything else checks out, you still want to think about attitude. How well will you be able to work with a particular set of rental tenants? There are people who are fantastic on paper, but a real nightmare when it comes to attitude and expectations. For example, you do not want a tenant who will call you in the middle of the night because stray dogs are milling around the property or they have seen a spider in the bathroom! Yes, there really are tenants who believe stray dogs are a landlords responsibility.
In addition to being easy to work with and reasonable, you want rental tenants who will call you when there are real problems such as a water leak or electrical problems. Issues like this that go unchecked can lead to massive repair bills, and most are much cheaper to fix in the early stages.
So is finding the ideal tenant a matter of luck? If you think of luck as due diligence and a keen perception of people, then yes, luck it is. When you have done all of the above, you will put yourself in the best position to find the tenant who will happily be with you for the long haul.
Our team at Rentwest Solutions are very diligent with their selection of tenants, contact us to find out more.