Take your time
You just finished your latest real estate project and are now drowning in the excitement of adding another property to your real estate portfolio. You have probably already visualised your units fully occupied and calculated the huge profit you stand reaping. While it might be tempting to lease out the units soon without vetting the occupants, renting your property to unworthy dwellers can prove troublesome, given the challenges you might likely face. For instance, eviction would be the only choice if a tenant fails to honour their payment agreement. This not only puts you back at square one, but it might also cost you an average of $3,500 in eviction fees.
Who is a good tenant?
A loyal tenant pays rent on time and takes care of your property. A background check will assist you in weeding out problematic renters and avoiding potential problems. Ensure that your screening procedure is equitable to all prospects and that your ideal applicants are picked based on objective facts rather than subjective opinions. Since most jurisdictions regulate the renter selection exercise, conduct thorough research on the state, federal, or local tenancy regulations that apply to you.
Things to look out for
- Low eviction track record
- No criminal record
- Positive credit score
- Steady income
- Ability to post an upfront deposit to cover potential property damages
- Consistent record of on-time rent payment
- Positive references from previous property managers
- Ability to associate with the neighbours
Advertise in the right place
Extensive advertising broadens your range of prospective renters. The greater the reach, the higher the likelihood of finding good leasers. It's advisable to diversify your marketing tools. So, while you erect flyers around the estate, consider online marketing given its popularity, low costs and ability to reach more people. While there are numerous property listing websites you can use, the most effective ones are those that can link and send your ad to other websites for increased publicity. Consider attaching a video showing a virtual tour of your home, showcasing the available features such as adequate parking, security, and more. This allows prospective residents to determine whether your property meets their needs, saving them time. The more detailed your advertisement, the greater your likelihood of attracting qualified candidates.
Set your expectations
Once you've published your advertisement, you are likely to receive a ton of responses, most being from unqualified leasers. To avoid this, make it clear in the listing advertisement what you're looking for. Furthermore, by creating renter queries, you will be able to quickly select the most qualified applicants from the myriad of responses. Some of the tenant's expectations could be no smoking in the property, pets not allowed, and the resident is supposed to rent the unit for a specified time. Take the initiative to get basic information about the leaseholders at initial contact. You could inquire about their smoking status, the reason for their move, the number and names of persons who will inhabit the apartment, the number of pets, and the anticipated move-in date. This information is essential for distinguishing qualified tenants from unqualified ones and deciding if your property fits their expectations.
Be a good landlord
Retaining good clients requires mutual respect between you and the client. Be on time with maintenance and repairs and see how the occupants will be motivated to pay their rent on time. Make the renters invested in the property: allow them to customise and make the most of the space without causing damage. Provide effective communications channels the occupants can use to reach you whenever they are in need. Deal with disruptive leaseholders promptly to ensure a comfortable living experience for the rest of the residents. Make renters sign a lease agreement that outlines all the policies for your property and its occupants.
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