The success of a landlord’s rental property business hinges on finding tenants. But not just any tenants, great tenants who will pay on time, respect the property, and in the best-case scenario, become long-term renters.
Unfortunately, finding these great, potentially long-term renters will not be a one-and-done proposition but a routine part of managing a rental property –especially if multiple units are involved. Because ours is a mobile society. Nearly gone are the days of folks living in the same residence for decades.
The faster a property gets rented, the more consistent the monthly cash flow will be, and the more likely the bottom line will be black rather than red. But remember, we’re not simply looking for warm bodies to fill these residential spaces. Instead, we want/need/ great renters, and these tips make locating tenants that fit that bill much more likely.
- Look for a reasonable credit score
Does their credit score really matter if a potential renter’s income meets the income requirements? Yes, it does! A person’s credit score provides a glimpse into their history of paying bills on time (or not), as well as their current debt load.
FICO considers a credit score to be poor if it falls below 580. According to their research, about 61% of those with poor credit scores end up delinquent on their loans. Look for tenants with mid-to-high credit scores, which indicate they are responsible with their credit and pay their bills on time.
- Seek tenants with positive landlord referrals
A solid rental history typically indicates a potential tenant presents a low risk. While a past landlord is not obligated to answer questions about your potential tenant, many will answer simple inquiries. In addition, most will verify if the would-be renter’s information is correct.
- Tune in to personality traits
Be on the lookout for friendly, interested, and engaged potential tenants. The kind of persons a landlord would be happy to welcome to the neighborhood. But steer clear of those with the opposite demeanors. You know, the bristly, oppositional, and demanding folks who cannot even be cordial during the application and screening process.
- Beware of beggars, pouters, and the like
Folks who jump right in looking for exceptions to the process, asking for concessions, trying to convince you of their entitlement to something or other, or beg for a compromise. If a potential tenant will readily challenge you to bend the rules this early in the would-be relationship, imagine what will happen once they have unpacked their boxes.
- Read between the conversation lines
He complained from the moment he arrived to check out the property. They made negative comments in every room of the home. She thought the paint color was all wrong. He hates wallpaper with a passion. The backyard the previous tenant loved feels “cramped and stuffy” to this couple. A pasted-on smile and being comfortable making eye contact may attempt to distract you from a complaining or negative spirit. If in doubt, consider yourself forewarned.
Great tenants make being a landlord so much easier. So, put in the time and effort to find those great tenants and cross the not-so-great off your list.
About Rentals America
Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.
