Arsineh Boghozian

9 Best Ways to Find a Great Tenant for Your Rental Property By Arsineh Boghozian Photo by Erik Mclean on Unsplash Renting out your property can be very beneficial for your financial situation and can earn you good money. However, finding a perfect tenant is a vital decision you have to make to ensure you’re successful in this process. The process of choosing the right tenant involves a variety of considerations, such as legal responsibilities, checking financial circumstances, and personality. In this article, we will dive into 9 best ways to find excellent tenants for your rental property. Obey the law Before going deeper into the tenant selection process, it’s important to gain knowledge about the legal matters of renting a property. Following the regulations of your city or county is a big positive step in this process. These laws will protect you and your property at the same time. You have to make sure you’re being fair to all your potential tenants. Important legal considerations include: 1. Security deposit policies Verify the maximum amount of security deposit you can collect in your city or county. 2. Complete lease agreement Make a clear and concrete lease agreement that includes all tenant responsibilities, rent due dates, and all detailed rules and restrictions. 3. Fair housing laws and regulations It is very important that you realize you cannot discriminate based on  Religion  National origin  Gender  Marital status  Color or race  Family status  Disability In addition, each and every state has its own rules and regulations for fair housing laws. You have to consider doing some research to find out what are extra rules for your city or state. Look at the credit score carefully Tenant’s credit score gives you important information about their financial liability. Higher credit score means they pay their bills on time and they are good at managing their finances. You have to follow these steps to evaluate your tenants’ credibility  Ask their permission in written form to run their credit  If you can, use a credit agency to get the tenants’ credit report  Consider looking for any major red flags such as debts or any record of missed payments  Decide a minimum credit score that you will need when you’re running their credit scores. Photo by Ines Klemm on Unsplash Don’t forget about background check Performing a detailed background check is essential to achieve a background investigation on possible tenants. This method will tell you about any unknown issues, guaranteeing the protection of your property. For background check you will need:  Criminal history: look for any previous criminal convictions that might cause a risk to your property or other tenants.  Rental history: Call the prior landlord to collect information about the tenant’s rental history, payment routines, and manners as a tenant.  Eviction records: Verify all past evictions, which could show a history of default or property damage.  References: Contact all personal and professional references to gather a better knowledge of the tenant’s personality and trustworthiness. Check the tenant’s rental history Tenant’s rental history is a valuable piece of information. Contacting prior landlords can provide you with information about the level of responsibility and reliability of your potential tenant in their previous rental agreements. You will need:  Timely rent payments: Check with the previous landlord if the tenant paid rent on time every time.  Property maintenance: Request information about how well the tenant kept the property, as well as any examples of damage or ignorance.  Lease compliance: Make sure that the tenant obeyed all terms of prior leases without causing any problems or arguments  Communication skills: Verify how well the tenant was in touch with landlords and solved any issues that came up during his tenancy. Select a stable tenant Stability is a vital aspect when you’re choosing a tenant. A stable tenant who is not switching jobs or residency quickly is more likely to afford regular rental income and decreases the risk of impulsive vacancies. You will need followings to evaluate stability of your future tenants:  Assess the tenants’ employment history to make sure they have a steady and stable source of income.  Search for signs of long-term commitment, for example, how long was the duration of their tenancy last time.  Ask about any possible life changes that may affect their ability to fulfill the lease such as job changes or family matters Photo by Pixabay from Pexels Two people at most per bedroom Maintaining a proper living environment in your rental property is necessary for both tenant comfort and lawful agreement. A general rule is to limit the number of occupants to no more than two people per bedroom. This helps to avoid overcrowding and decreases wear and tear on the property, keeping it in good shape over time. Rely on your instincts Although it’s crucial to depend on data-driven evaluation, your intuition can also play an important role in the process of choosing a tenant. In addition, personal communication or a sense of reliability can be important signals. But you have to keep in mind to combine your gut feelings with realistic information and make sure that decisions are not affected by labels and clichés. Collect enough security deposit You can think of a security deposit as a financial protection for landlords, covering any possible damages or unpaid rent. It’s necessary to gather enough security deposit as allowed by the laws of your city or state. You should keep the security deposit in a separate account and let your tenants know about the situations in which the money can be deducted. Meet with your prospective tenants in person Meeting with your potential tenants is an important step toward the selection of the best tenant. In-person communication allows you to evaluate their character and communication skills. It will also show you if they are suitable for your property or not. Here are some tips for your meetings:  Plan a suitable time for both you and your potential tenants, so you can talk to each other with peace of mind.  Make a list of questions to ask them, about topics such as rental history and tenant responsibilities  Answer any questions your potential tenant might have with an open mind about the property and lease terms and conditions.  Consider these meetings as an opportunity to build a connection and set up a positive landlord-tenant bond Conclusion Finding a tenant for your rental property doesn’t have to be hard and challenging. Following these steps will reduce the risk of selecting wrong tenant for your property. You will have a better chance of choosing the right tenant who will pay your rent on time and keep your property in great shape. Keep in mind finding a perfect tenant will always take time so you have to approach it with patience. Remember always to keep your knowledge up-to-date about the rules and regulations of your city and state. So…what do you think of this list? Now I want to hear from you. Let me know by leaving a comment below.