Investing in a rental property is not something to be taken lightly. It is essential to find the right renter to protect that investment. A bad tenant can lead to lost rent or even damage to your property, while a good tenant ensures you receive rent in a consistent manner and provides peace of mind.
So, how do you find the right resident for your rental? Read this guide as we will provide you with the right procedures to prepare your home for rent, manage applications, and establish a screening process that helps you find the right renter for your property.
Making a good first impression is very important. In order to attract the right tenant, you want to show the market a property that is clean, safe, and cuddly, which will offset your competitors.
By preparing the property as noted above, you increase the opportunities to attract responsible, quality tenants by as much as 80%.
Understanding the rental application process is essential for prospective tenants to increase their chances of securing a lease. This is because a simplified application process enables you to evaluate qualified candidates effectively and fairly.
Following the steps outlined will enable you to obtain the correct information, allowing you to make an informed decision.
Design a form that will collect all the necessary information, including rental history, employment, income verification, and references. By using the same form for all applicants, you create a fair and legally defensible screening procedure that ensures an equal and objective comparison.
Clearly indicate your parameters (Income requirements, minimum credit score, pet or smoking policy) to create reasonable expectations for applicants and to help mitigate discrimination complaints. Transparency and upfront information save everyone time.
The use of a digital portal is essential in modern property management and faces increased competition in the marketplace. A digital portal helps collect payments, securely keep tenant data and files, and allows applicants to log in to upload documents securely. A portal does a better job of creating an experience for everyone and makes you look more professional.
If you struggle to find the best portal for your property, you can partner with property managers who provide excellent recommendations for different use cases. Property management in Northern Virginia continues to evolve with technology, offering online portals for tenants and owners alike.
Call the applicant's employer to confirm employment. Call the prior landlord to verify payment history and discuss the condition of the apartment at move-out. Lastly, complete a professional credit and background check to screen for any warning signs before making your decision.
After you have decided on a tenant, contact them as soon as possible and explain the next steps regarding the lease signing. Don't forget, you also have the duty to formally notify the applicants you did not select. Being direct and fast is courteous and professional, which will reflect positively on your business.
At the end of the day, your best weapon for securing a responsible tenant and a good start to the leasing process is a thorough and consistent application process.
The final and most important step prior to leasing is a thorough screening. Screening your candidate directly protects your investment by confirming that they are a legitimate candidate and worthy of your rental.
A credit history will provide information on an individual's ability to manage financial obligations. You want to look for a history of on-time payments and low debt obligations. A strong credit score is preferable; however, it is not necessary.
If the individual has a history of clear delinquencies or patterns of non-payment, this is a strong indicator that they are unlikely to pay rent in the future.
Make sure the income declared by the applicant is sufficient and reasonably stable. The gross monthly income should ideally be three times the monthly rent amount (or a similar rent-to-income ratio).
Request multiple months' worth of pay stubs, and/or contact the employer to obtain employment verification and salary information to help determine if the applicant can afford to reasonably pay the lease amount.
Your best source of information is to talk with previous landlords. Ask for the rental payment history, whether the applicant kept the property in good condition, and if the landlord would rent to them again. Past history and impressions better explain character than a rental history form could ever do.
This is a conventional safety measure. Concentrate on convictions pertinent to property safety and tenancy requirements. Always follow local fair housing laws, which often limit the timeframe for background checks and the types of crimes that can be considered.
Cross-check all information you receive against the rental criteria you established at the beginning of the process. This will help support your decision and ensure that it is fair, legal, and defensible. Then you will feel good about providing a lease to the most qualified applicant.
When you carefully implement these screening steps, you take a basic application and create a trustworthy lease agreement, resulting in a tenant who will treat your property with respect and pay their bills.
Finding a great tenant is not just luck; it is the result of having a clear, structured process. With a prepared property, a straightforward application, and comprehensive screening of the applicants, you are ready for long-term tenancies.
Being purposeful about proactive tenant selection reduces risk and offers you a lease with a dependable tenant. The end result is that you secure your investment and have the peace of mind that every landlord deserves.
