So you're renting your home out. Fantastic! With the low inventory of homes and increasing interest rates, many home buyers are sticking to rentals. But unless you have an experienced real estate agent, the process of selecting a tenant can be quite cumbersome. With several years of property management experience under my belt, here are what I consider the top 3 concerns most homeowners had:
1. Financial Stability: One of the most critical factors when selecting a tenant is their financial stability and ability to pay rent consistently- and on time! Focus on applicants who have a steady income that is sufficient to cover the rent, utilities, and other living expenses. Most importantly, verify their employment or income source and ensure that their income meets the rental requirements. Highly recommended: conducting a credit check! This can provide insight into the applicant's financial history, including any outstanding debts or late payments. [Beware! There are websites that cater to people looking to get fake pay stubs made. Seriously!]
2. Rental History and References: Check the applicant's rental history and references. This can provide valuable information about their past behavior as tenants. Contact their previous landlords to inquire about their payment history, whether they took good care of the property, and if they respected the rules, and neighbors. Something to note: While speaking with personal references can give you a sense of their character and reliability as tenants, the reality is, most references provided are sometimes just family members posing as work colleagues, or former landlords. [Another note: If contacting a current landlord, keep in mind they may want to get rid of the tenant, and may provide misleading details.]
3. Responsible and Reliable Behavior: It's essential to assess an applicant's responsible and reliable behavior. Applicant's should have a track record of being respectful, taking care of the property, and adhering to lease terms. Conduct a thorough background check to identify any criminal history that could raise concerns, or could impact your other tenants. Additionally, verify their employment and job stability to ensure they will continue to have a stable income throughout the lease term. [Note: If the applicant is starting a new job, ensure the offer letter provided is dated, signed, and contains full contact information - to include an email - for the employer. The new job should be inline with what the applicant was doing at their previous job.]
Want more tips on how to select a good tenant? Reach out to me anytime!
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