Whether you are new to property management or are a seasoned landlord, finding tenants who pay on time, take care of the rental unit and communicate about issues can be a challenge. Finding that “perfect” tenant can be as elusive as finding a unicorn. There may not be a supposed perfect tenant but rather those that check off as many of the boxes as possible.
What are those desired qualities and how can you, as a property manager, ensure that your applicant fits the bill? Here are a few ways to avoid letting your property sit vacant for too long as well as what steps you can take to protect your investment.
What Is a Perfect Tenant?
This question is a loaded one and some will say it is subjective depending upon your property needs or homeowners association requirements, but most landlords have a few things they are seeking in a renter.
A good renter will be on time with their payments and have a reliable source of income. Their credit check will confirm that they pay their bills and do so in a timely manner. A good tenant will be respectful of the property which may be evident in references from previous landlords or HOAs. And while it may be asking for too much, a good renter should be able to communicate their needs.
Tips To Finding First-Rate Renters
As a property manager, it is important to use as many resources available to you to find renters who are gainfully employed and can make payments on time, are respectful of the property and are open and communicative about any needs they may have.
Conduct Background Checks
Some of the steps and resources you may want to take when looking for that “needle in a haystack” good tenant is to have a comprehensive application with multiple requirements such as references and a credit check.
Reference Checks
Requiring that your applicants supply contacts (phone and/or email) to previous landlords or property management teams will give you a cursory idea of the applicant’s payment history, behavior, property care and any red flags that you may need to be aware of.
Credit Checks
Landlords should also run a credit check on each person who is on the lease for the unit to ensure that they have income and employment history to cover the monthly costs as well as the first/last/security deposit needed to successfully move in.
Criminal History Check
In addition to confirming employment history, credit history and references, landlords should conduct a criminal background check to ensure the safety of the property and of people living there. Potential renters must give consent for the background check to be completed in writing. The legal document is known as the CORI Acknowledgement Form.
Require an In-Person Meeting
As candidates for tenants begin to hear of your rental opening, you will likely have tours of the unit. It is during this time that property managers or landlords can “size up” and assess the level of interest, communication style, and personality of the prospective renter. An in-person meeting is just a part of the overall picture that will help you decide if a candidate is a good match for your rental unit.
Keep in mind that the Commonwealth of Massachusetts has long-standing and robust Fair Housing Laws that prohibit discrimination in housing based on protected classes. Be sure you understand and are following these laws.
Tired of the grind of finding good tenants for your properties? Talk to our professional team at Thayer & Associates, as we have years of experience and expertise in these services.