Finding a good tenant is essential, but it can also be tricky. It requires more than just putting an ad on the internet. To find a great tenant for your rental property, it pays to know what makes a good tenant.
So, we’ve created a list for you. These are 8 traits to look for in a potential tenant.
1. Openness Toward Background Checks
It’s important for you as a landlord to know who you are renting to before you rent out your property. This is because you never know when a tenant is going to be reliable and worthwhile or seriously problematic.
A tenant background check is important for the following reasons:
• To find out if they have a criminal record
• To choose the best tenants from your pool
• To check their work history
• To make sure that they will comply with your rules
• To confirm your tenant’s rental history
• To know which questions to ask during screening
• To confirm their identity
2. Reasons for Moving
Tenants move for various reasons. For example:
• To change their neighborhood
• They had problems with neighbors
• A job change/relocation
• The need for more space
• They had problems with their previous landlord
Contacting their previous landlord isn’t 100% reliable, as some might throw an array of unjust accusations. The only option is to ask them directly. Granted, the tenant may lie but some of the reasons are quite straightforward and oftentimes completely honest answers.
3. Personal Behavior
You should call up tenant’s previous landlords to ask how they were personally. Good questions to ask them include:
• Did the previous tenant pay the rent and on time?
• Did they do a reasonably good job of taking care of the rental property?
• Was the person disruptive towards neighbors?
• Was the unit clean and in good order when the tenant left?
• Was the tenant evicted?
4. Ability to Pay Rent
This is a no-brainer. The prospective tenant should be able to pay rent without struggling. To verify whether they can afford the price of the rent, you need to look at their proof of employment.
Look for a tenant who has good job prospects and a steady, reliable income. A good rule of thumb is that the price of rent shouldn’t exceed 30% of the tenant’s income.
Some red flags to look out for include a person who has long periods of unemployment or if the person changes jobs often.
A good tenant maintains cleanliness. It’s every landlord’s dream to get a tenant who will take good care of your property. You obviously wouldn’t want a person who is going to let trash pile up on the patio or leave food remnants building up in the microwave.
You can get a better idea of the way they would maintain your property if you get a glimpse of their car or if they allow you to meet them at their current residence. You could also include a cleaning clause in your lease as well.
When you are a landlord, it’s important to protect yourself against as many potential risks as possible. This is the same reason why you have to do a proper tenant screening before renting out your property in the first place.
But should you allow a tenant to sublet? Subletting happens when an existing tenant lets all or part of their home to someone else.
Allowing subletting is risky. Some tenants want to sublet as a way to earn extra cash or to avoid paying rent on a vacant apartment. Also, there’s no guarantee that they would pay as much attention to the tenant selection as you did.
It would be counterintuitive to be okay with your tenant getting a couple of tenants of their own.
It’s important to know how many people are going to be living with your renter. The tenant might be planning to move in with their significant other or even their entire family.
Should you allow roommates, here’s how to do it smoothly while protecting your investment:
• Consider updating your occupancy limit
• Be prepared to consider a unit switch
• Be cautious about creating new lease terms
• Require potential roommates to be screened as tenants
8. Plans for residence
Your final layer of screening is a simple practicality test. If they have a job nearby, verify that your house is not an impractical distance away. If they have a family, check that there is a room for everyone in the home. If they have a pet, confirm that they are willing to conform to the pet clause in your lease agreement.
Generally, tenants will have an excellent plan for residence, but it never hurts to check.
If your prospective tenant possesses most of these traits, then they are a great candidate for a long-term renter. They will most likely keep the home in good condition, and that they will be responsible and well-behaved.