How do you pick the right tenant?
Good things happen when you pick the right tenant. Your rent comes in on time, your home is being taken care of, and your stress is minimal. This is what you envisioned when you first purchased your investment property. This is where you want to be so you are reaping the rewards of your investment with minimal issues.
However, picking the wrong tenant can lead to problems that take their toll on you both financially and mentally. These problems might have been avoided if procedures had been followed to minimized the mistakes.
One of the things I learned as an airline pilot is that when you’re flying an airplane, you have to rely on your instruments. When you rely on your instruments, you can’t rely on what your body or your gut is telling you. The same holds true when it comes to finding a tenant. You have to go with your instruments which are your qualifications. This is basically a business relationship that you are entering with your tenant, so it is important to ensure you are getting into the right business relationship with someone who is qualified.
Setting strict qualifications for a tenant is important
We have a 20-point tenant screening process here at Empire Industries. Because we are strict when it comes to picking a tenant, the property may stay vacant a little longer but it is worth waiting for the better tenant.
Think about what you are looking for in a tenant as far as qualifications go such as:
- income is three times the rent
- no felonies
- no evictions
- no frequent job hopping
It is important to keep in mind there are questions you can’t ask, and you need to be sure you comply with the Fair Housing Laws.
Empire uses a mass marketing strategy to get our rental listings in front of more potential tenants, but we are very strict on who we screen. Our strict requirements for tenants are why we average a 1% eviction rate. If you want to use our qualifications, you are more than welcome to give us a call.
If you are looking to buy, sell, lease, and/or manage a property, we are here to service and educate you. I cannot stress enough how much easier your life will be if you pick the right tenant.
Sometimes it’s just a matter of having a conversation with the tenant to discuss your expectations with them. Don’t get short-sighted and just put someone in the property because you are getting nervous. Don’t skip the screening step because if you look at their past, you will see their future.
Give us a call, and we would be happy to help you.