Finding a great tenant can be a challenge for any landlord. If you’re going to the expense of investing in a property to rent, then it is always a smart decision to use an agent to help you find suitable candidates.
A wrong decision can mean missed rental payments down the track or damaged property and all the bills and headache that entails.
As an experienced agent, I believe that using a professional to process applications and collect the rent each month is the safest way to go, especially if you’re not an experienced landlord.
Even when using an agent such as myself to help you with this challenge, it is good to know the right approach to take. Here are some tips.
- Use an application process – This documentation is used by professional agents, landlords and managers of apartment complexes to screen potential tenants. The details disclosed in this form will provide an excellent picture of each prospective tenant.
- How to find the form – Agents and real estate attorneys will have suitable applications available, along with the local housing association.
- The information you want – Each applicant should provide evidence of their identity, such as their social security number, driver’s license or a verifiable ID card. You’ll also need proof of income and their rental history. It’s always a good idea to insist on references, especially from any previous landlord.
- Consider charging a fee – It’s not outrageous to request a nominal $50 fee from applicants to avoid time-wasters. In many states, it’s also the cost of running a full background check.
- Get a full background check – This is essential with any prospective tenant you wish to take to the next stage.
- Red flags to watch for – Broken leases could be bad news as it may mean money was left owing on the previous contract. The background check will reveal any broken leases, plus their credit rating and any criminal prosecution(s).
- Seek advice – If you still want to conduct the search yourself, I recommend seeking advice from an agent or attorney on any confusing or troubling points of state law relating to the relationship between a landlord and tenant.
- Watertight lease – Don’t short-cut this essential element of renting your property. Everything in your lease agreement should be fair to your tenants while also protecting your interests. Its content should be legally enforceable. Work with an attorney to avoid future problems.