When managing a rental property, landlords strive to make a profit while avoiding any unnecessary issues. Part of this process entails ensuring their tenants are responsible, respectful, and good fits for the space. Assessing the quality of tenants prior to leasing the property can help landlords negate the risks of conflict and property damage.
Follow the Laws
An important factor to consider when reviewing potential tenants is the legality of your decisions and methods. Discriminating against potential tenants based on qualities such as race, gender, religion, or familial status is unlawful. Many regions have individual Fair Housing Rules that you must abide by, so keeping those in mind while assessing your potential tenants is essential.
When seeking tenants for your property, you should be selective from the beginning of the process. Crafting a detailed application for potential tenants can help you identify any individuals who might not be the best fit for your property. Including sections like personal references, rental history, and employment history can shed some light onto the character of your applicants. Assessing these factors to determine the stability and responsibility of potential tenants can spare you unnecessary issues moving forward.
Though meeting potential tenants directly makes sense, it is important to arrange in-person meetings with all tenants you are considering. Giving potential tenants a tour of the property and observing their behavior, presentation, and even their vehicles can give you a better understanding of their interests, nature, and cleanliness habits.
Ideally, you will want to select tenants whose collective monthly income is significantly greater than the cost of rent each month. Verifying applicants’ employment and regular income by contacting their employers is a great way to validate their status. Additionally, many landlords tend to perform credit checks on their applicants; even if potential tenants have a substantial income, they may also be saddled with a lot of debt. Assessing applicants’ income to debt ratio will often provide you with a better estimate of their financial responsibility.
Tenants provide the primary income for landlords. Finding reliable, responsible tenants are crucial for your success and peace of mind as the owner of the property. Following the above advice can help you better assess the quality of your potential tenants and ensure your property is leased to individuals who will not damage your property, skip payments, or cause unnecessary issues.