When you are renting out your property, how should you choose the right tenant? There are many people out there who are looking to rent a home, but any given tenant might not be the right fit for your property.
Perhaps your property is more suitable for students, or young professionals, older singles or families with children? Each of these different demographics has their own lifestyles, schedules, needs and desires.
Often landlords prefer tenants who are similar to themselves when it comes to demographic profile and values. If you share the same values as your tenant and you get along well, this will make for a smoother and more pleasant relationship. However, a good tenant is more than just a category, they will be determined by a referencing process including referrals from previous landlords and credit checks.
So how can you choose the right tenant for your property? Here are some tips to keep in mind:
Create an Application Form
When you are collecting information from potential renters, you can create an application form that will help you to keep things much more organised. There are many templates for this sort of form online, which will save you a lot of time.
Always Check the References
References are very important for finding out about your tenant’s history. Make sure that you take references and check them, such as calling the tenant’s employer or their previous landlord. References allow you to get an idea of the tenant’s character so that you can know what to expect from them.
Perform a Credit Check
Ask your tenant if you can perform a credit check on them, so that you can assess their financial situation. Remember to handle this in a sensitive manner, as some tenants might be hesitant to consent.
Meet Them in Person
It is important to always meet your tenant in person before renting to them. You should trust your gut instinct when you meet them, because your first impression will tell you a lot about whether or not you will get along with them. If you get a bad vibe from them, you don’t have to go through with the rental.
If you live a long way away from your property, find someone else who can meet your tenant on your behalf – whose judgement you trust.
Once you have found the right tenant for your needs, you should put together a contract and ask them to sign it, so that you will have all of the details of the rental agreement in writing should a dispute ever arise.
Take the time to find the right tenant and renting out your property will go a lot more smoothly. If you can choose which tenant suits your property best, you will have a much greater chance of a successful long term relationship.