Finding Reliable Tenants for Rental Properties
Are you having time finding the right tenant(s) for your rental properties? These awesome tips can help sure you find a great fit.
So you've saved up, purchased property, and now you're ready to rent it out...but how do you find a good tenant?
You're in luck -- renting is on the rise in the United States. But after working so hard to invest in property in the first place, the last thing you want is a tenant who will trash the space and give you a headache.
We've put together the top five ways to make sure you get the right tenants in your rental properties.
1) List Your Rental Properties Online
Don't limit yourself to a 'For Rent' sign or ads in the newspaper. You'll see interest much faster if you post your rental properties online.
Try creating a listing on a variety of different websites. You should include information about the property, your contact information, and lots of high-quality pictures!
These days, people usually search for listings online. You want to make sure you're not missing out on potential tenants.
2) Create a Rental Application
Once you have people interested in your rental properties, you need to screen them to make sure they're a good fit.
One way to do this is with a rental application.
These applications can require potential tenants to include information like:
- Previous addresses
- Social Security Number
This helps you dig up all of the information you need. If they refuse to provide references or pay an application fee, that's your first red flag.
3) Write a Lease Agreement
Even if your potential tenant has a flawless application, you still want to write a lease agreement.
This puts your rules in writing and gives both of you a document to refer back to.
A good lease agreement should include things like when rent is due, who is allowed to live in the property, whether or not pets are allowed, etc.
It should also spell out when you have grounds to evict them. This is a last resort, but will give you a legal basis for your decision.
4) Avoid High Turnover
Another way to get high-quality tenants is writing leases with a long rental period.
Short-term rentals are usually occupied by people who don't really care about the property. They're not looking to stay long and aren't invested in the space.
This is a recipe for a trashed rental property at the end of the lease.
Avoid leasing month to month or even for six months. One year should be the minimum length on your lease.
To make sure you get a tenant who is going to stay for a long time, see if they have connections to the area. Is your property close to their job? Do they want to send their children to a school in the district?
People connected to the area are more likely to stay.
5) Ask For a Large Deposit
Sometimes, even if you do everything right, bad renters still manage to worm their way into your rental properties.
Asking for a large deposit can help to offset any potential damages.
This is really a win-win situation for you. If your tenants don't take care of the rental properties, you know that you have the money available for any necessary repairs.
That is especially true if you ask for a deposit that is higher than the monthly rent, just in case.
If you do have a reliable tenant, there's no need to worry.
With these five tips in mind, you should be ready to post your listings and find great tenants!
Need more help managing your rental properties? Let us know.