Today we are talking about the best ways to find a highly qualified tenant for your rental home. There are several important things you need to do, including a credit check, a background check and an eviction search.
Always start with a credit check. At Reliable Realty Property Management, we think tenants with a good credit score have great potential. You want to look for an applicant with a solid financial history and acceptable credit. Your background check will help you identify anyone with a criminal past. A high quality tenant is not a felon or a drug dealer, so be thorough when you are examining past behaviors and the results of the background check.
We highly recommend an eviction search because our experience tells us that tenants who were evicted from a property once are likely to be evicted from another property in the future. You don’t want the repeat eviction to happen in your home, so think hard before you approve a tenant with a prior eviction. That’s not good for you or your property. Instead, you want a long term tenant who will take care of the place like it’s their own.
After you do all of the required checking, ask for documentation to prove the information provided on the rental application. Ask for rental receipts, pay stubs and bank statements. When you look at rent receipts you can verify what the tenant was paying for rent at the last property and you can also check to make sure rent was paid on time. If there were any late payments, you’ll be able to see them.
Pay stubs will demonstrate they have enough income to pay the amount of rent you are charging. You want to make sure they actually earn what they say they earn. The bank statements seem strange to a lot of people. Tenants often ask me why we require them. The reason is this: we like to make sure there’s a little bit of savings in the account. If there is a period of time that the tenant can’t pay rent because of a problem at work or some other issue, having a little extra money in the bank will help them cover their rental obligations.
Don’t be afraid to say no. No one likes to be the bad guy, but if there is something about a potential tenant application that isn’t adding up, or they are not qualified, you can say no. There is no reason to approve the first tenant who puts in an application. Be selective to ensure you get the best tenant possible.
If you have any questions about finding tenants or anything else, please contact us at Reliable Realty Property Management.