In order to make money, you bought investment property. But the incorrect tenant has the power to ruin your investment, restrict your income flow, and make you anxious.
The wrong tenant might cause damage to your property, pay rent late or not at all, and make eviction more expensive and stressful for you. Making the correct tenant choice is essential to preventing this.
People who either can't buy because of credit restrictions or would prefer rent than buy to limit liability and keep their situation more flexible are on the rise as a result of the economy. The good news for landlords is that there is a larger pool of potential tenants to choose from, and rental rates are sharply rising.
The Vanguard Management Group has used industry best practises for maintaining buildings, grounds, and recreational facilities over the years to help our associations flourish and the value of their properties increase. Our Homeowner association management system is user-friendly and adaptable .
How do you tell if a prospective tenant will be a good one then? Here are some suggestions to help you save time and hassle.
Check out possible tenants in advance:
Before introducing them to the property, conduct a phone-based pre-screening of your prospective tenants. Ask every inquiry that comes to mind.
Do you own any animals?
How many people will there be living there?
Could you provide proof that your income is three times the cost of the rental?
Have you have any successful rentals?
Can I speak with a former landlord of yours?
Do you have testimonials?
Speak with their former landlords:
Speak with at least two of their former landlords if you can. the following inquiries
Was the rent paid on time?
When they left, did they follow the terms of the lease?
With their neighbours, did they get along well?
Other than typical wear and tear, did they cause any harm to the property?
Did they frequently complain or ask for maintenance?
You might want to think about requiring a co-signer if the prospective tenant has no prior renting history.
Obtain a credit report.
Regardless of their income, the tenant may struggle to pay the rent if they have a lot of debt. A credit check will reveal their payment patterns as well as any dubious debt, prior rulings, or bankruptcies that they may have.
Do a criminal history check.
To view a criminal record at state and county courthouses, all that is required is your name and birthdate. Remember that you might not have access to the applicant's whole history if the tenant has lived in multiple states.
Embrace your instincts.
Don't rent to someone if you have a negative feeling about them.