Given you don’t have to spend much time with your tenants, you may think it’s not important who they are. But there are good tenants, and there are bad tenants and finding the right tenant may be just as important as finding the perfect location for your investment property.
1. Value of a Good Tenant
Here are a few reasons why it’s worth trying to attract a high-quality tenant.
When a tenant pays their rent in full and on time, it saves you both time and stress.
Minimize your costs
Good tenants will treat your property like it’s their own and respect it, so you’re less likely to find unpleasant surprises when they leave. They are also less likely to bother you with small maintenance issues, saving you time and money. Also, you want a tenant to stay as long as possible as every time a lease ends, it costs you money.
2. How To Choose The Best Tenant for Your Property
While no method can provide you with a guarantee, there are certain things you can do that will give you a better chance of finding a great tenant.
Look for a good credit score
If a person is responsible with paying their bills, there is a strong chance they will pay their rent on time and treat your property responsibly. Ideally, you will want to find a tenant whose monthly income is at least three times the monthly rent.
Perform a background check
Criminal information of both serious and minor offences is public record and can be viewed at various court houses. All you need is a name and date of birth. Just keep in mind that certain states, such as California, prohibit landlords from discriminating against renters with certain criminal convictions. Also, there is no nationwide database so it will be challenging and time-consuming. What’s even more important is to choose a tenant who is stable so look if they move or change jobs often.
Trust your instincts
There’s no technique that can measure up to your intuition. If something feels off, it probably is no matter how perfect it might look on paper. Trust your screening, but do not ignore your gut.
3. Tips for Keeping Your Tenants Happy
Every landlord knows how hard it is to find good and responsible tenants who will pay the rent on time and take care of their property, so your goal should be to keep tenants like this happy. The truth is that this is quite an easy task.
Answer when they call you and listen to the problems they have in their rental home. Be responsible and communicative. Transparency is key so just make sure the lease is clear as being vague can result in many misunderstandings.
Respond quickly and address problems immediately.
Upkeep of the property
Take care of your property’s with regular maintenance at convenient times for your tenants. Maintenance is the best prevention against breakages while also increasing the lifespan of your property.
Regular upgrading will keep problems at bay. High-quality kitchen appliances will speak volumes of your care for the tenants’ comfort and happiness, but accomplishing this goal doesn’t necessarily have to cost you a fortune. There are many upgrades that will significantly improve both the property and the tenants quality of life like energy-efficient washers and dryers, cand convenient smart thermostats that make the home more comfortable and lower the PECO utility bill.
Show a good tenant that you appreciate him or her
It never hurts to keep track of special occasions such as birthdays or just say thank you for being a good tenant. However, you should also remember this is a business transaction and there could be tough decisions ahead so don’t cross any boundaries.
You don’t have to fulfill every caprice a tenant may have, but if you gained a good tenant, you can try to be cooperative. Keep in mind that simple and cost-effective upgrades can mean a world of difference in your tenant’s eyes.