How can you avoid picking the wrong tenant?
As both an investor and a property management company owner, I learned how important it is to have the right system set up when it comes to tenant screening. If I don’t have strict qualifications set ahead of time, I won’t find the right tenant. You do not want to end up with the tenant that doesn’t pay rent on time.
What qualifications are you looking for?
In order to have the right tenant in your rental property, you are going to have to first establish what qualifications you are looking for. What is the definition of a good tenant in your mind?
- Is it a certain amount of income? (For example: 3 times the rent)
- Are you willing to accept someone who has an eviction in their past?
- Are you willing to rent to someone with an arrest record?
- Are you allowing pets?
- What kind of credit score do they need?
Going off your gut when choosing a tenant is the worst thing that you can do. Make sure that when you are picking your tenant, you are using your qualifications as a strict guideline.
Make sure the applicant follows through on what they say.
If you require something from them like financials or other paperwork and they don’t give it to you in a timely manner, that could be an indication of how they are going to be as a renter. Over the years I have learned that if you look at their past, you will see their future.
Empire Industries leases about 30 to 40 houses a month. If you want our qualifications, we’d be happy to share that with you. We use a 20 point tenant screening process to pick the best tenant for the homes we manage. We can also help you lease, buy, sell, and/or manage a property. We have a 1% eviction rate so we are pretty good in choosing the right tenant and know what to look for as far as qualifications. We know what questions to ask and what questions you can’t ask in order to comply with Fair Housing Laws.
Give us a call anytime and we’re ready to help.