How to Find the Best Tenant for Your Rental

How to Find the Best Tenant for Your Rental

Renting your property quickly can be tempting for a property owner who wants to make money. It is not appealing to leave your property vacant. It’s important to protect your investment. You do not want your property damaged or to have to evict tenants. It’s important to know how to find someone to lease your house. Here’s a guide to help you do that.

What makes a good tenant? How to Tell

Selecting a tenant ultimately comes down to a business decision. It can be tempting for you to choose tenants with whom you “click”, but you should make your decision based on facts and not subjective feelings. It is important to find the right tenants to ensure that your property remains occupied and profitable. TransUnion estimates that the process costs an average of $3500. Here are some factors to take into consideration when screening the applications of prospective tenants.

Proof of income/Income levels

According to Buildium’s 2021 Rental Report, the pandemic negatively affected 30.9% of renters’ ability to pay rent every month. This led to a negative impact on 31.3% rental property profitability. It’s clear that it is more important than ever for you to ensure your tenants have the financial ability to pay their rent. You should look for a tenant with a monthly salary that is at least three-times the rent. Ask for a copy their pay stubs to verify the information.

Background checks and credit checks

Credit score is another factor to consider when looking for a good tenant. Credit scores don’t tell the full story about a tenant’s rent-paying ability, but they can provide some insight into their past behaviors and debt ratio. Credit reports will show you if a tenant has been evicted before or filed bankruptcy.

You can choose from three credit bureaus as a landlord. Equifax, Experian and TransUnion are three of the credit bureaus. You can create an account online with these bureaus. You can pass on any fees that your chosen bureau charges to your tenant. After your credit bureau verifies your identity, you’ll complete a short credit check request form. You can read the credit report of your tenant online once your report has been prepared. You may receive different types of information depending on the credit bureau that you choose.

In general, you want to see a consistent history of timely payments, a stable work history, and an acceptable debt-to-income ratio. Renters should have a credit rating of at least 620. If your credit score is lower, it may indicate that the applicant poses a financial threat.

Your chosen credit bureau may also be able to perform a background check on your tenant. Background checks will provide you with information about a tenant’s criminal record, past addresses, credit inquiries and known aliases. If you are faced with a choice between two applicants, this information may be useful. Note that it is illegal in some states to refuse a rental application because of a criminal record.

The Legal Nitty Gritty

You should familiarize yourself with the laws of your state and country regarding landlords and tenants’ rights before you start looking for your new home. Consult a lawyer to find out more about the local and state laws.

Fair Housing Laws

Federal Fair Housing lawsstates that you can’t reject an applicant because of their race, colour, religion, age, sex, nationality, family status, mental/physical disability. You cannot reject an applicant based on any other factor (eg. The Fair Credit Reporting Act mandates that you notify the applicant if they have a low credit score. If an applicant with a disability is interested in renting our apartment, then you will need to make accommodations, like installing a ramp.

Local/State laws

State and local laws make additional provisions for landlords and tenants. You can view a complete list of state laws on the web. These laws cover everything, from where and how you can hold your security deposit to if you need to give notice before entering a property that is occupied.

Attracting the Right Tenants

You can now work to attract the tenants who will value your property most.

Write Your Listing

It’s an art writing the perfect rental listing. Every listing should at least include the information that tenants need to decide if your rental property fits their needs. This includes:

  1. Rent price
  2. Number of Bedrooms
  3. Number of Bathrooms
  4. Deposit amount
  5. Pet insurance
  6. Location

Include your contact details in the listing. You should be easily reachable.

After you’ve gathered all the information you need, you can get creative. Choose a title that is memorable for your property. You can use a title like “Farmhouse-Inspired Luxury at the Heart of Downtown Nashville” to evoke images of rustic beams, marble counters and a vibrant evening life, which you could emphasize in the photos of your listing. Your future tenant will be able to visualize themselves in their home.

Your listing body should also be original. Here is where you can set your rental apart. Highlight the unique features that make your rental property stand out. Mention the new tiling in your bathroom. Be sure to mention vaulted ceilings if your property has them. In the description, mention if your property has recently been renovated. Where it counts, be as specific as you can.

Your listing should include high-quality pictures of your property. However, how you present your listing to readers can have an emotional impact that makes them more interested in applying. At this stage in the leasing process you are selling potential tenants on how your property is better than the properties of your competitors. You can’t expect them to know unless you tell the truth.

Social Media and Listing Websites

Buildium’s Rental Owners’ Report 2021 found that the majority of real-estate investors prefer to have their listings online. This is not surprising in today’s digital world. Multifamily Executive states that the majority of renters are finding their new homes online. There are many resources that you can use to list your property. Here’s a selection of the best listing websites.

  1. The website offers condos, apartments and houses. Site requires that prospective tenants pay to use its app. This makes applicants think about whether they are interested in the property. This feature will attract more serious tenants who are motivated to rent your property.
  2. Zillow Zillow is one of the biggest databases online for rental properties and homes. The site has built-in tools for landlords. This is a big plus. The mobile app is very easy to use. The site is well-known among tenants, so your listing will reach more people.
  3. Craigslist It may not be obvious to list your rental on Craigslist. This site is a good option if you are looking for college students, or young adults in their 20s. This site is visited by millions of people every month. It may not have all the bells and whistles that other rental websites offer, but it does the job.
  4. Hotpads Hotpads is similar to Zillow. Landlords can even use Zillow’s Rental Manager for their Hotpads listings. This site allows tenants to compare apartments, properties and their amenities side-by-side. Renters can narrow their options and you will only receive applications that are truly interested.
  5. Zumper: Zumper reaches over 13 million renters. Renters are screened using credit reports, background check, and application. Zumper allows landlords to interface with tenants and collect rent using its platform. Zumper also offers ongoing support for multifamily property owners through a dedicated Account manager.

Use of a Leasing or Realtor

You don’t have to find tenants yourself. A realtoror leasing agents can relieve you of some of the burden of finding tenants. A realtor who is qualified can handle marketing and advertising. Your realtor will also guide your tenants in finding their dream home. Your realtor will be able, through their meetings with the prospective tenants and the property shows they’ll handle, to distinguish between the window shoppers and the serious applicants. It’s important to remember that working with an agent is rarely free. Realtors charge for their services. Some landlords choose to pay for their realtors directly, while others charge a broker fee.

How to Show Your Property

You can start showing your property once you have started to attract applicants. This is a crucial step in the leasing procedure. You’ll want your property to look its best after you have listed it. Make sure that your property is clean and well-staged. You may consider paying for cleaning services before showings if you have tenants.

Be sure to emphasize the positive aspects of your property during the showing. Your listing will highlight the best features of your property, but this is your opportunity to elaborate on them in person. Mention if your property is flooded with natural light. It’s a big plus if you have in-unit washing machines. Don’t limit yourself to the features of the property. You can also use the fact that a neighborhood is vibrant as a selling point. You might also share testimonials of previous tenants.

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