Top Tips for Choosing Best Tenants for your Rental Property
You are only thinking in terms of regular rental income when buying an investment property. What you are ignoring is the fact that you may have to face bad tenants also. There are umpteen examples of investors troubled by bad and ugly tenants through not only late and non-payments but also through damage to their properties.
Here are some top tips to avoid these problems by choosing best tenants for your property.
Choose tenants having good credit
Save yourself from trouble if you weed out applicants with poor credit during the screening process. You cannot trust applicants with low credit as they have a history of defaulting on their bills and other payments. Choose tenants who have a verifiable income and a good credit history.
Run a background check of the applicants
It is very important for you to know if the applicant is an honest and reliable man or not. You can do so by running a criminal background check by looking at his public record from courthouses. Get the valid ID of the applicant and check whether he has been involved in any criminal activity or not. If yes, then stay away from such an applicant as he can create problems for you in future.
Ask for applicant’s rental history
Rental history of the applicant often serves as a good tool to verify his past record. Ask about any two of his previous landlords and talk to these individuals to know the track record of the applicant as a tenant. You can ask these landlords if they received rent on time or not and whether the applicant behaved properly with other tenants or not. You can also ask the applicant the reason behind moving from his current residence. This will give you an idea whether he has been evicted by the landlord or he has a genuine reason behind moving.
Check the employment history of the applicant
Employment history of the applicant tells you whether the person is stable or not. Has he been switching jobs regularly? If he is changing jobs quite often, you can be sure he will not be able to pay your rent in a timely manner.
Do what your gut feeling says
You are the final judge being a landlord. If you find everything satisfactory but still do not feel comfortable with the behavior of the applicant during interview, it is better to deny tenancy rather than ruing your decision later.
Finally, always remember you cannot discriminate against prospective tenants under Federal Fair Housing Act. Its primary prohibition makes it unlawful to refuse to sell, rent to, or negotiate with any person because of that person's inclusion in a protected class (race, color, religion, national origin, sex, disability, and familial status. This last term refers to the presence of at least one child under 18 years old, and also protects prospects and tenants who are pregnant or in the process of adopting a child)