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Your rental property is only as good as the tenants that are in it. Now, that may not be a popular opinion but the truth is this.
If you have an amazing property with terrible tenants, it decreases everything about your property: the profitability, the value and the desirability of your property are impacted.
If you have a less-than-stellar property with amazing tenants, everything about your property will increase. The profitability is higher. The desirability of your property increases. Also, while the value of your property won’t increase because of great tenants, it is more likely that it will be in better shape when those tenants leave than if you had terrible tenants. This means it is easier to rent again with less associated repair costs.
All of these facts point to one logical conclusion. It is extremely important, even critical, to select the best tenants right from the beginning. It is so important that if there were no quality applicants for the unit, it may make more sense to wait for the right tenant than to rent it to just anybody.
How Do You Choose the Right Tenants?
If it is so critical that the right tenants move in, what is the formula? How do you attract the right type of tenant? How do you reach them? When they come in for a viewing and apply for the unit, how do you know if the applicant is the right person?
These are important questions and they deserve thorough answers. When you buy a real estate investment property, it doesn’t come with a handbook on how to screen the right tenants or how to make sure that your investment property is profitable. You have to figure it out yourself… unless you hire a professional property management company like Centurion Property Management.
Leveraging our years of experience and our knowledge of the proper tenant/landlord dynamic, we know how to choose the right tenant. Here is the 5-step process to choosing a great tenant.
5 Steps to Choosing the Best Tenant for Your Property
Prepare the Property
Making sure you put your best foot forward will help ensure that you attract the best tenants possible. If your unit looks like a place that is welcoming and would make a great home, you have a better chance of finding a great tenant.
Curb Appeal. How does your unit look from the outside? How does it make you feel when you look at it? These are important factors for people and the first impression can make or break the deal for a great tenant.
Making sure the interior looks great and smells great. Freshly cleaned and vacuumed with a hint of a candle of some fresh baking. These are the smells that make people think of home and will help them picture themselves living in your unit.
You could even take the extra step and stage the unit with some home decorations, shower curtain, rugs, plants, etc. The idea is that the applicants who will be great tenants are looking for long term rental properties. Seeing the potential of a unit can help them picture themselves enjoying that place as their home.
Advertise the Property
Attractive pictures and good ad text placed in the right advertising medium will ensure a strong call volume. Quantity will lead to quality… if the advertising is in the place. Make sure people understand what is available and want to come and see it for themselves.
It is also very important to accurately set your rental rate to ensure it is rented quickly…this can be done with a comparative rental market analysis.
3. Thorough Screening of Prospective Tenants
- Check the identification to make sure they are who they say they are. This is critical to protect yourself against fraud or damages.
- Complete a thorough background check.
- Complete an in-depth check into their credit history and creditworthiness. Any major hiccups in this area should be discussed thoroughly with the applicant to understand the situation.
- Take a look at the state and national data banks. If there are any red flags, they need to be discussed.
- Consult with their previous landlords and make sure you ask the right questions. This process will let you know how they have treated other rental properties in the past.
- Check their record for recent evictions.
- Are they registered as a sex offender?
The Move-In Process
A complete move-in packet with all the required and appropriate forms is essential. All the proper documents and legal forms should be included, as well as any unit-specific information.
Going over the forms and especially the “Expectations” with the tenants is a must. They must understand what you expect of anyone renting your property. Clarity around expectations is what leads to a healthy tenant/ landlord relationship.
Now that you have successfully found a great tenant, now things shift to maintaining the property and managing the tenant to ensure a good relationship which leads to a long tenancy.
Great Tenants Lead to Great Properties
Rental properties and tenants can be a challenge. That is why having a great property management team on your side is crucial to making your rental property journey enjoyable.
Centurion Property Management has the processes and the proven track record to make sure that you get the best possible tenants for your property. Partner with Centurion Property Management and get the best of the best results from the best of the best in property management.
