The first step to finding the right tenants for your rental property is to get a good grasp of what an ideal tenant is and isn’t. Inform yourself of the current renter demographics so that you can get a clear idea of what are the different wants and needs of the various tenants. In line with this, it should only be right for you to build an understanding of your local rental market, so that you can come up with a profile for who you think the best tenant is, especially for your specific property. From a tenant’s perspective, look at your property. In your area, who might be the possible renters? Why would they want to choose your property over others?
By understanding your market and your property in this way, you can then take the next step to find the right tenant: advertising. Typically, when it comes to advertising a rental property, the more targeted your marketing is toward your ideal tenant, the more rewarding your advertising is likely to be. Regardless of who your perfect tenant is, always be ready to pitch your advertising to them. For the most part, this will lead you to list your property in multiple rental listing websites. Availing of online advertising is a very good way to reach new tenants. Used with other modes of advertising like hanging a “For Rent” sign out front, or posting a flyer on a community board, you should be getting calls from prospective tenants about your property in no time.
When the phone calls come, your next strategy is to screen each applicant. Though a lengthy process, the screening is very important and it should start with your first conversation with your caller. Prepare a quick description of your lease terms, expectations, and screening criteria and work it into that initial conversation. As a result, unqualified tenants who submit applications can be determined quickly. Upon completing the phone test and receiving the application, conduct a thorough background check on every adult who will be living on the property. Also, it’s relevant to collect and contact several references, including any prior landlords. A meticulously executed screening process can help you narrow your options to the right tenant.
Also, prior to any interaction with applicants or tenants, educate yourself in state and local landlord laws. Understanding how these laws interact with tenant-landlord situations is very relevant, especially to avoid accusations of discrimination. While you should collect the information you need during the application process, avoid asking questions that may violate a tenant’s privacy. By adhering to the Fair Housing Act and other regulations, going to court can be avoided, and a great tenant is sure to be on the way.
Lastly, ensure the quality of your lease documents — they must be worded properly. Your lease is a legal contract that sets the terms of your tenant-landlord relationship. Your lease should be clearly worded and detailed enough to cover each aspect of your agreement. At the lease signing, be sure to collect a deposit in the form of a cashier’s check or money order. Either avoid accepting personal checks or have a system in place that will allow you to wait for the check to clear the bank before turning the property over to the tenant. Completing the signing and payment process to your satisfaction will be of no issue, at all, for the right tenant.
If the idea of screening and managing tenants still feels overwhelming after these tips, try hiring a property management company, like Real Property Management Dade. We take all the daily hassles of rental properties off your plate, including tenant screening, queries, evictions, and so much more. Contact us today if you would like to know more.