The U.S. rental market contains more than 43 million households as of 2021.
When you own investment properties and act as a landlord, it's important to know your rights and responsibilities. Knowing this information helps you find and keep good tenants in your rental properties.
You want the types of tenants who also take their rights and responsibilities seriously as well. This way, you'll enjoy a positive landlord/tenant relationship.
But how do you find a tenant that fills the bill? The ones who take care of the property, pay rent on time, and communicate about maintenance issues?
Having the best tenants in your investment property will make your life as a landlord so much easier. Keep reading to learn how to find a tenant you can trust for your rental property.
When considering a potential tenant, it's in your best interest to look into their background. You'll want to use three types of screening checks. Do a credit check, background check, and look at eviction history.
If they've ever been evicted from a property, it will show up on their credit report. You'll also find a credit score, payment history, and bankruptcies.
Follow the local laws regarding tenant background checks. You might learn things that are not very notable. It's up to you to use your discretion when deciding what's a definite no and what may warrant some explanation.
Make sure the reference section of your application asks for past landlords and current or past employers. Friends and family references will not give you a reliable account of a person's financial reliability.
Past landlords and employers are in a position to give you a better picture of the person when it comes to being responsible.
Come Up With a Standard Process
As you gather relevant information on potential tenants, it helps to create a spreadsheet to track the applicants. This way, you have all the information and can objectively compare your options.
Remove your emotions and look at the facts. This is a more reliable way to judge someone's financial responsibility. It's better if you choose tenants based on the information in front of you without adding your personal opinion.
Use a Property Management Company
A local property manager has knowledge and experience with the local rental market. They may have a list of tenants who are qualified to rent and have already been screened.
They have experience in spotting red flags with potential tenants. They know the criteria to use when screening. They have a list of pre-screening questions. You'll end up with tenants who respect your property and take on the responsibilities associated with renting.
Find a Tenant You Can Trust
Knowing how to find a tenant you can trust will give you peace of mind. Hiring the right rental property management team that knows how to screen tenants will go a long way in protecting your investment.
Are you looking for a property management company to assist you in finding tenants? Leave the screening to us. We at Blue Line Property Management serve the Bay Area with all aspects of property management. Contact us today!