 This blog was reprinted (and modified) from the original author Sian Morgan who is with Amron Properties in North Tyneside, UK. You can read more on All Things Property Management, Buildium’s official blog. Buildium offers new users a 15 day free trial.
Demand for rental property is increasing dramatically every year. This means that it’s becoming more challenging for tenants to find a suitable property in their price range, which means you’re likely to have a backlog of applicants. As a Landlord, you owe it to your property and your other tenants to find the very best applicants among the pool of candidates. Here are some steps to take to make sure your new tenants are lovely, not lemons: Check References and Rental History Look for recommendations from previous landlords. Consider how long the applicant lived in their previous apartment, whether they regularly paid their rent on time, and the condition in which they left the property. Verify this information if provided by the prospective tenant. Other references can include character profiles from employers. Check Credit and Employment History Credit checks are a good indicator of a tenant’s payment history. They will also reveal any bad debts or bankruptcies. This lets you know if the tenant is likely to keep up with rent payments, in addition to preventing your property from being visited by bailiffs and debt collection agencies. Trust Your instincts Even if their references seem to check out, if you feel uneasy about letting your property to them, don’t. There is a lot of demand for properties, so it is unlikely that you will be left with an empty unit for long. This can help prevent trouble, stress, and expense in the long run. (77th Meridian note: Fair housing laws will limit you here. It's a good idea to establish screening criteria before accepting applications. Allow applications to be rejected based on meeting the criteria and save whim to decide between two qualified tenants.) Always Obtain a Deposit Before Handing Over the Keys Different properties will require varying deposit amounts, but the usual fee is between 4-6 weeks rent payment. This should always be placed in a separate bank account. Meet the Tenant Prior to Signing a Lease This can give you the most insight into an individual’s personality and behavior. It also allows you to make an accurate judgment about whether you would feel comfortable dealing with them throughout the duration of the tenancy. Trust between both tenants and landlords is vital, and this can be created through meeting face to face. (77th Meridian note: If an applicant dresses poorly for the showing, it is a good indicator of their respect for the lease) Avoid Making Rushed Decisions Obviously it’s not ideal to have long periods of time when the unit is empty and you are not receiving rent. However, having to take on a tenant you are less than happy with will not solve the problem for long. Remember, it takes time to find a suitable tenant, so bear this in mind when scheduling viewings if your current tenants are planning on vacating once their tenancy has finished. Research Competing Properties If local options are of a higher standard than your housing, it may be a good idea to bring it up to the same level to avoid attracting less desirable tenants. (77th Meridian note: You can rent a good property to a bad tenant but you can't rent a bad property to a good tenant) Know the Property and the Local Area Be prepared for the typical questions a tenant will ask during viewings. It is an opportunity for you to showcase your property and promote yourself as Landlord, so make sure you are friendly and helpful to prospective tenants. A key skill to develop as a Landlord is finding good tenants. They’ll give you far fewer headaches, which means you can spend less time putting out fires and more time creating a rental community that will make you love coming to work. 77th Meridian, LLC manages residential property in Anne Arundel and surrounding counties, and parts of Baltimore City for a monthly fee of 7.7% of the collected rent. Why pay the 10% others charge? We save you TIME and WORRY. . . .
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