When you decide to turn a home or condominium that you own into a source of income by leasing it, finding a good tenant is often the key to ensuring the venture is enjoyable and profitable. You need to find a tenant who will pay rent on time, take care of the property and maintain a good, professional relationship with you.
There are several things to look for when you are considering tenants for your property. According to Forbes, these are some ways to find good tenants.
Comprehensive references
Most people who would be good tenants should be able to supply you with thorough references. Ideally, you would get references from previous landlords that indicate your potential tenants follow the rules and pay rent on time.
Some potential tenants may not have any rental history. In that case, you may choose to ask for references from friends or family members. These references may be biased, so Forbes recommends supplementing them with other aspects of a comprehensive screening process.
Diligent screening
Forbes provides a list of numerous factors that may go into your screening process. You may choose to pay for a professional background check. You may also be able to request an eviction history, which shows whether a candidate has prior evictions and if so, whether they were due to criminal issues or financial problems.
Forbes also recommends verifying a potential tenant’s financial situation. You may request proof of employment and income in order to ensure he or she has the means to afford your calculated rent. A credit report provides information on a potential tenant’s use of credit and payment history. Another option is to request a pay stub to verify a candidate’s income.
