Good Tenants Are Hard To Find - These Tips Can Make Your Search Easier
Posted on: 5 February 2018
Not ready to sell your home just yet? Turning it into a rental property provides a great way of putting an otherwise empty property to good use, plus it gives you an alternate stream of income. The toughest part of renting your home isn't getting it ready for your new tenants - it's finding those reliable tenants in the first place. Here are a few helpful tips you can use to find the perfect tenant for your rental home.
Think Outside the Advertising Box
Prospective tenants won't know where to look unless you get the word out. While there are plenty of conventional ways you can advertise your rental home, there are also several unique approaches you can use to find the perfect tenant.
Facebook, Twitter and other social media outlets are great for spreading the word about your rental. It also gives you an opportunity to spread the word throughout your personal and professional networks. Another option involves taking out a printed ad in the classifieds section of your local newspaper. This might seem a bit old-fashioned, but you never know where you'll find your next tenant.
Narrow Your Search
Sometimes it's easier to find a prospective tenant by marketing your property towards a specific demographic. If your rental home happens to be great for pets, for instance, you should focus your marketing efforts towards pet lovers. If it's located within a great school district, play up that attribute to families in search of great schools.
Opt for a Face-to-Face Meeting
The more you know about your prospective tenants, the better. Meeting them in person is a great way of getting to know your candidates. It'll also give you an opportunity to observe crucial indicators of how they'll behave throughout the lease period. If you don't feel comfortable around a prospective tenant, don't be afraid to listen to your gut and respectfully cut them loose.
An informal meet-and-greet is usually a better idea than holding a formal interview with your future tenant. Formal interviews won't tell you much about a tenant - after all, it's an interview and everyone will be on their best behavior. Besides, conducting a formal interview could land you in legal hot water since it violates Fair Housing laws.
Pay Attention to Rental History
Go through your prospective tenant's rental history with a fine tooth comb. You'll want to know if the tenant consistently paid their rent on time or if they were evicted for nonpayment or rules violations. You'll also want to know how well they kept their previous apartment, how well they interacted with their neighbors and if they gave ample notice prior to moving out.
Contact at least two of the tenant's previous landlords for this information. It's not uncommon for some landlords to provide false information in hopes of dumping a problematic tenant. Don't forget to conduct a criminal background check (if it's allowed in your state) as well as a credit check to get a complete picture of your prospective tenant.
Go for Stability
You'll want to tenant who's economically and socially stable. If their job requires constant moving, you may end up with a vacant home sooner rather than later. If they change jobs often or go for long stretches without employment, that could put into question their ability to pay rent.
Ask for a Large Deposit
If you want to know how serious a prospective tenant is about renting your home, you should ask for a large deposit. An eager tenant should have no trouble offering the requested amount. Most tenants are just as eager to get their deposit back when their lease is up, so it also guarantees your home will be treated well.
Most landlords ask for a deposit that is equal to one month's rent, but you're better off asking for a slightly higher deposit. This way, tenants won't assume they can use the deposit to cover their last month's rent.
Talk to your property management company for more direction and tips.
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