In the real estate industry, there are three main types of tenants: those who demonstrate excellent rental history and responsibility, those that will be a mediocre tenant and those who won't make it past the first month. The difference between these groups can be found in their characteristics, which we've outlined for you below.
A quality tenant with a strong rental history, gladly pays the rent on time, leaves the rental property clean whenever they move out, and upholds their side of the lease agreement terms.
It may sound easy to find contenders for this sort of tenant through tenant screening, but there are three important things you should look for in a new renter before you offer them a place to live. These characteristics will help you make sure that potential tenants are reliable and trustworthy. A thorough background check will also make it easier for you to decide if and when to go ahead and rent your property to them.
First, your potential tenant should demonstrate consistent income verification and pay the rent on time every month. This requirement is pretty straightforward. If they can't provide proof of regular employment verification, then you may want to find them another property before offering them the opportunity to rent yours.
However, this also means that potential renters must have enough income to maintain a healthy rent-to-income ratio to afford the required payments. It's important that you don't allow someone who is living hand-to-mouth into your rental property, as this might cause problems down the line if they are unable to pay their rent on time. Property managers should avoid tenants who won't be able to afford the required monthly payments. Late payment penalties might create too much of a financial strain, which could lead to poor service or late rents.
The second thing you should be looking for is someone who maintains the property well when they are not living in it. Property inspections help ensure you are not renting out your house to have it look like an abandoned building, so you want people who understand this important point.
Remember that it takes a lot of time and effort for rental properties to look nice, so being lazy about keeping the home clean isn't something that can be accepted by potential renters. You want renters with proven rental history that are willing to treat the home with respect, otherwise, you are going to have lease violations with them down the line.
The third thing you should be looking for in potential tenants is someone who has good credit score requirements. If rental applicants do not have a lot of debt or bad credit, chances are they will stick around for longer than others, which means less time and energy wasted on finding new people to take over your property.
A quality tenant with excellent landlord references is always hard to find. However, if you can find someone who meets strict rental criteria, maintains the property well when not living there and has good credit, then you have found someone who will hopefully be renting your property for quite some time.
