Beware of the bad tenant blues. Irresponsible or otherwise ill-qualified tenants can be costly (in more ways than one) and can set you back when it comes to achieving your investment goals.
Instead, source high-quality, responsible residents for your properties by paying close attention to these 6 areas.
They have good credit
A person’s credit history can be highly predictive of their future ability to pay rent on time month after month.
They’re not criminals
Must we expound?
They haven’t been evicted
Again, no explanation needed here, but we’ll do it anyway. Someone who’s recently been evicted is likely not going to be a good resident.
They’re good people
Just like credit history, past behavior can be highly indicative of how a tenant will behave in the future. Do a reference check by talking to an applicant’s previous landlord. If they smashed holes in the walls…you probably want to know.
They can afford the rent
A rule of thumb is that they should be able to show a combined monthly household income of at least three times the cost of rent.
Discerning tenants are going to pay the absolute minimum rent for a high-quality space that fits their budget and needs. It’s the people who are willing to pay more who can actually become bad tenants. (Hint: Set your rent rates at a fair market price to avoid bad tenants.)
Good tenants are going to respect your property. They’re also more likely to stick around for longer thereby reducing your vacancy rate. Key into these 6 areas if you want to secure good tenants in your property.
If you need help doing so, get in touch with our team at RL Property Management.