It’s no secret that the US rental market is tight. Even though the market has started to cool, rental prices remain 18% higher than pre-pandemic levels.
That’s excellent news for property investors, but they must still be careful when choosing tenants.
Long tenant queues would make any landlord happy, but the folks lining up might not be all that they seem. Fake IDs and false income claims are frequent issues when selecting tenants.
Property managers can help when choosing a tenant, especially for investors who don’t live near their properties.
However, the investor makes the final tenant decision, and experienced landlords and those new to the market must consider this decision carefully.
At the same time, the decision must be completed swiftly as no investor wants a property to remain empty for longer than needed.
So, what makes a good tenant?
Whether they are students, retirees, single, or married with a family, a good tenant will not cause unnecessary trouble to a landlord or the property.
A good tenant will pay their rent promptly, care for the property as if it were their own, and communicate maintenance issues quickly, honestly and sensibly.
They will be able to provide proof of a steady income and favorable references from former property managers or landlords.
They will respond swiftly to requests from either yourself or your designated property manager. They should also be available and accommodating when routine inspections are scheduled.
A good tenant will adhere to their lease terms and tenancy regulations, and tell their property manager or landlord about potential issues, such as owning a pet or making changes to the property.
Landlords can check a prospective renter on one of many tenant databases available across the US. You’ll see a tenant’s credit score and the possibility they’ve been evicted from a previous property and/or have a criminal record.
While such checks and balances might seem extreme, landlords should remember that this high level of scrutiny will help ensure the protection of their property investments.