You’ve made one of the most important investments of your life. You’ve finally locked down on that DMCI Homes unit you’ve long been eyeing. Now it’s down to finding the tenant to make your rental property business succeed. Every landlord needs to work with the right tenants to avoid turnover and maximize the profits they make from leasing their property out. Here are some of the factors you need to consider to find the ideal tenant.
Identifying your ideal tenant
You can’t go seeking an ideal tenant and have zero idea of what that looks like. If you’d like to lock down on the perfect tenant, you need to have a clear understanding of who that is and what attributes she/he needs to have. There are important characteristics every tenant must have, including financial stability, basic courtesy, and no criminal records. But there are considerations that are more specific to a landlord’s personal preferences, such as not owning any pets, being a non-smoker, and not having any kids. Take stock, and list everything down so you know exactly what to look for.
Attracting the ideal tenant
As with any exchange, it’s not just about what you want. You need to be able to provide an ideal living space if you want to attract the perfect tenant. Be ready to put in the work. Since you’ve already acquired a unit in a property that comes with attractive amenities, it now boils down to adding some finishing touches tailored to match the profile of your ideal tenants. If you are looking to cater to a young family, then a child-friendly home must be your goal when furnishing your interiors. If you’d rather attract a young professional, then a minimalist space may be your best bet. Design your home with your target market in mind.
Screening your prospects
If you are serious about getting the perfect tenant, you can’t take things at face value. You should learn to properly screen your prospects. Be ready to do a reliable check on their income, civil history, and criminal history. You should be on the lookout for possible red flags like eviction cases and a questionable employment history. A person who can’t hold on to a job or stay in a rental property for relatively longer periods may not be your ideal tenant.
Getting reliable references
A great way to make sure you get reliable information about your prospects is to ask for references, and actually talk to them. Don’t just ask for contact numbers of people they are friends with. Ask for the contact number of their employers and former landlords. If they refuse to provide you with such information, it’s best to consider it a red flag.
Screening your tenants
Take the time to interview your prospects. Be ready to ask the right questions. Inquire about the aspects of your property that best match their needs, the last two homes they rented, and what compelled them to move. Ask possible tenants to talk about their lifestyle and financial circumstances, the number of people who will be living in your property, any tenancy dispute they may have been involved in, the tenancy agreements they prefer (periodic or fixed term), and whether they will be bringing pets. Learn as much about your prospects as you can.
Keeping the communication line open
Be very open when dealing with your tenants. Let them know what your expectations are, and be willing to entertain questions. Make sure the communication line is not going one way. Ask inputs from your tenants. Inquire about any terms they’d like to be added to the tenancy agreement, and if they have any worries about the existing terms. Having the right attitude and professionalism will help you attract first-rate tenants.
You should be aware of the top reasons to reject a tenant and be uncompromising of your deal-breakers. Be ready to deny tenancy to people who are unfriendly and disinterested, do not do any follow-up, do not take the time to complete the rental application, refuse adhering to rental house rules for tenants, refuse to authorize a background and credit check, have a propensity toward delinquent behavior, have a low credit score, and are beset by a history of unemployment. Doing due diligence will help you dodge the bullet.
Spotting red flags during property showing
It’s during the site trip or property showing that you get to meet your prospects for the first time. Make sure you take the time to do it yourself. Avoid delegating this part of the process. It’s a great time to get to know your prospects and avoid getting tied down with the wrong tenants. Pay attention to possible red flags like being late for your set appointment, being disorganized with their belongings, having a disheveled appearance, being disrespectful or rude, and the like.
Why respect is important
Being respectful is a key telltale sign that a person is going to be a good tenant. A person who is respectful is more likely to live up to their responsibilities of paying their rent and bills on time, and properly maintaining your property. They won’t be difficult to talk to as well, making the tenancy period a stress-free one for you.
Focusing on cleanliness
You’ve invested time and money in your rental property, so it’s only right that you’d want to protect it. Naturally, you’d want to leave it in the right hands. One indication that your tenant will take care of your property is if she/he takes care of himself and his property. So take a closer look at his belongings and personal appearance every time you are having a face-to-face meeting, and walk him to his car so you can have a quick look at its condition.
Trusting your instincts
You can do your due diligence, be convinced that you’ve found the right tenant, yet still feel that you shouldn’t go forward with it. You may sense that something that feels off even if you can’t quite point your finger at what it is. There are times when you need to rely more on your gut feeling than on reason. If you feel a knot in the stomach just by talking to your tenant, it’s best to look the other way. There’s nothing like your instincts to tell everything you need to know about a person.
Be sure to advertise your property in a way that attracts the right tenants. Whether you are trying to attract students, professionals or small families, your advertising message should be designed to effectively speak to them. Make your marketing efforts as targeted as possible so you attract the right people.
This landlord guide should help you succeed in renting out your property to the right people. Looking for tenants is not always easy, but with the right know-how you are well on your way to landing a deal with the best tenants.