Rental properties are a great means of additional income. They are a relatively safe choice when it comes to ensuring the return on your investment is equal or greater than the initial cost. That being said, finding the perfect tenants may seem like a difficult process but it doesn’t need to be! Did you know that a Realtor can assist you with renting out your property and will take care of everything including showings and credit checks?
Choosing the perfect tenant is key to ensuring your property is well kept and respected. A rental property that is well kept by its tenants requires little to no work on your end. Here are a few tips and tricks to ensure you take all the precautionary measures when choosing your tenants to ensure you have a great experience as a first time landlord.
1. Proper Rental Documents
Good documentation is the first step in ensuring a successful relationship between landlord and tenant. Many new landlords underestimate the importance of the rental application form, this form should include: the applicant’s job, supervisor, income, current address, references, government identification, next of kin and all other details you believe to be relevant in the approval process. This information has two key roles: provides a better understanding of who the applicants are and gives you additional information if the tenant should disappear.
Other documents such as the move-in inspection report, residential tendency agreement and addendum to residential tenancy agreement should all be part of the required documentation. These said forms should be written by professionals; online residential agreements will not suffice in ensuring your interests are put first.
2. What to look for in your prospective tenants
Ultimately, it is your decision who you choose as tenants for your property and while it is important to be picky, it is also important to be realistic in your expectations. While it is easy enough to say no to everything, you may be excluding some great tenants.
You want to make sure that the property suits the tenants and their needs. A perfect example is whether you would consider a tenant with pets. If your rental property is small, it may not be well suited for a large dog and this could make damage a far more likely outcome.
You will also want to consider the employment history, credit history, and income of the potential tenants. This seems like an obvious one but it is very important to ensure that the tenants can afford to be there.
3. Verifying information
It’s important to understand that not all tenants have your best interest in mind. This means some of the documentation and information given to you by the potential tenants can be both inaccurate and fake. The only way to limit fraudulent documentation is by verifying it. Call the applicant’s references and be sure to question any information that seems problematic.
If all the proper precautionary measures are taken, when choosing the perfect tenant, you are far more likely to have a successful career as a landlord. Filtering through the applicants can seem tedious but once you have found the perfect tenant your work is basically complete.