Putting your property up for rent can be a difficult task, and leaving your keys with people you don’t know is daunting at the best of times. It can be easy to spot a bad tenant once they’ve secured the space; paying late, causing difficulties with neighbours and demanding repairs. But spotting the bad tenant before it’s too late is a little tougher.
So how do you secure that perfect tenant from the get go? Take a look at our top tips for assessing a tenant before they move in.
This doesn’t necessarily mean pick the person with the highest income. Higher incomes can sometimes mean higher debts. A quality income assessment should check on their financial obligations, and ensure the income they are getting is regular and reliable. Try a credit check to ensure your potential tenant isn’t paying off major debts, or doesn’t have a bad credit score that could imply late payments.
Rental History/Background Check
Checking rental history is an important part of establishing what type of resident your tenants will be. This is why many property managers will request references from landlords or other agents who can answer whether rent was paid on time, the length of their stay, how the property was treated and the reason for moving. Added onto this, a background check can help determine whether you are approving a tenant that may have been involved in illegal activity, which might suggest an unreliable tenant.
Establish motivation for renting the property
This also includes establishing who exactly is moving in. Questioning their connection to the location and their appeal to the property could be a major determinate of how long they are willing to stay. Are they interested because it’s close to work? Are children attending a nearby school or university? These aspects can factor in to a promising, long-term tenant.
Former landlords are a great start for reference checks, as they will be able to give you an idea of how they treat the property. The next best choice is a work reference. A secure job is essential, and a layout on their care and attention to their work can give you an idea on how they will treat your property.
Invest in the right agents
Quality real estate agents will help you with handling all the background checks, references and other questions. A good property manager will make sure your house is taken care of, and will ensure that you aren’t bringing in any dangerous individuals.