Here's 7 proven steps To Find great tenants

An investment property can be the beginning of a lifetime stream of residual income, and the basis for long-term financial security. A key link in the chain to successful use of an investment property to generate income is finding reliable tenants. These are some excellent tips for getting started or getting better at rental for profit. One should read through this list and review the information carefully as it can avoid common and costly problems.

Taking The Risk Out Of Rental

This is some helpful guidance for establishing a good owner-tenant relationship. Designed for repeated use, think of this list as a whenever you want or need it reference; or a how to property management made easy. The owner of a property bears the risks of a bad tenancy. The costs and aggravation of regaining possession and control over the property is something every owner seeks to avoid. Business health is like physical health, for it is far easier to avoid a problem than to attempt to cure it. Here are some ways to avoid bad tenants.

1. Review References

The past does not always indicate the future, but tenant references can be the most revealing pieces of information available to predict a successful relationship. There are good tenants who wind up with bad leasers, abusive or pushy people can also be property owners. One must filter the information. However, a glowing past tenant report is always welcome news. Personal references can also be useful, particularly if from community figures such as priests or leaders of civic groups.

2. Conduct Interviews

Use a form with questions and then an interview can proceed naturally from a discussion of the questions and answers. This is an opportunity to get to know the prospective tenants and determine how well their plans fit with the long and short term goals for the investment property. In casual conversation, one can get a feeling for trouble areas by asking simple questions such as feelings about smoking, online gambling, or how often does one go to the casino? 

3. Run Credit Checks

One should not select solely on the basis of a credit check, but it is helpful information. Credit checks can reveal past problems, which should be discussed if recent. They show the strength and availability of financial resources.

4. Assess Personal Stability

A person who moves frequently, changes jobs often and has few connections with the community is not stable.  Such persons are not preferable over those who seldom move, have long histories with few employers, and many friends and relatives in the local community.

5. Examine Employment, Business, and Assets

The prospective tenant’s employment and business activities should be considered. Ideally, an employed person would also have some business activities. If in business, a Dunn & Bradstreet or similar report can be informative, but also one should get information about lines of business, such as family businesses and stocks. Business involvement is a good thing, and it suggests a wider range of assets than employment alone.

6. Perform Background checks

There are many easily accessed public records to identify certain categories of background data. Records exist for past evictions, sex offenders, criminal convictions, drunken driving convictions, and violent felonies. Further, if considered important, one can make an inquiry into the existence of firearms. Some records are free while others may require fees. A background check is a critical step to take as the failure to check can later support a claim of negligence.

7. Advertise Widely To Attract Good Applicants

Owners can use standard methods such as placing an ad in the local newspapers under house or apartment for rent. One can go further and create a web page to post photos and details about the property, or on Web pages that advertised rentals. Excellent ad copy and good site selection will result in more coverage and greater response rates. Owners can focus on advertising in upscale periodicals, or in sources that appeal to business people or young professionals. The goal is to create a pool of applicants with desirable traits such as high incomes, strong community standing, and evidence of good character.