How To Find A Good Tenant

How To Find A Good Tenant

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The relationship between landlord and tenant is a delicate one. Little issues can mar it, and make the experience unpleasant for both parties. In order to avoid such problems, you should look for good tenants with whom you can get along. This article deals with the question of how to find good tenants and ensure a pleasant experience for both the landlord and the tenant. Below is a list of tips to help you along in this process

1. Screen the Application. Have all your tenants fill out a detailed application form. If the person refuses to fill the application, then you should not rent your property to that person. Take down the applicant's name, income, credit details, past rental details, references, driver's license number, and the name of the applicant's employer.

2. Get an Authorization to Release Information document, so that you can check the credit information provided by the applicant.

3. Verify references. Contact the references given by the applicant and keep a record of what they said. Get in touch with the employer of the applicant to find out more about the applicant's income, and ask the previous landlords about the applicant's history.

4. Get a credit rating agency to make the applicants credit report. If you want the applicant to pay for the credit report, you can ask the applicant to pay, but do not take more than the fee charged by the credit rating agency.

5. Payment ability is very important if you are a landlord. Deduct the monthly expenses of the potential tenant from the income to see if the potential tenant can pay the rent on time. Higher income does not automatically translate into regular rent. Those with a lower income and fewer expenses are more likely to pay rent in time, as compared to someone with a higher income, a bad credit, mortgage, and other expenses.

6. You should get at least a month's rent in advance as a security deposit. If the applicant cannot pay the security deposit, it implies that the person does not have the means to pay rent on a monthly basis.

7. Before you giving the keys to your property, photograph the property and prepare a detailed report of the condition of the property. This will hold up in court as evidence should the tenant damage the property. This also works as a great deterrence against damage to your property.

Taking these precautions will ensure that you have a good relationship with your tenant, and the tenant understands the responsibilities. If you wish to rent out your property, but are not sure how to find a good tenant, you can approach a real estate agent or a small business consultant for help. If you are a fair and honest landlord, there is no reason why you should not be able to find a good tenant.

By David Gass

David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their smallbusinessconsulting.com.

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