When you’re a landlord or property manager, you know how amazing it is to find a good tenant. Someone who takes care of your property, pays on time, follows the lease, and is either long term, or leaves the house in the same condition they found it in. A good tenant is every landlord’s dream. So, how do you find a good tenant?
What Is A Good Tenant?
So what makes a tenant good? It’s not your opinion on them, it's their actions and their history. When learning how to find good tenants, keep an eye out for a:
Healthy track record of on time payments
Steady income
Positive credit report
Ability to cover potential property damage with an upfront security deposit
Good references from past landlords
Polite and respectful to neighbors
No prior history of eviction
No criminal record of lewd or dangerous behavior
Don’t just stop there though. A good and clean record is a great place to start, but a good tenant has to be someone you can trust with your property.
Do Your Research
It is important to familiarize yourself with federal, state and local housing and tenancy laws that may apply to you. This information is available on the U.S. Department of Housing and Urban Development website.
Income level is a big thing too. It might be harder to find a good tenant based on the property values. If you over-improve your investment property with the idea of charging a higher rent, you might have a difficult time finding the right tenant. To help avoid long term vacancy, make sure your rental property meets the fair market standard for the location and what the property has to offer.
Set Expectations Upfront
If you want a good tenant, you have to be upfront with everything. That means being specific in the rental property listing on what the tenant is responsible for, what they can/can’t bring (pets, smoking, etc.), and that you’ll be doing a background check on them. This may help weed out some of the tenants you don’t want applying.
Examples of tenant expectations could include:
The tenant will occupy the rental for a certain period of time
The tenant will not smoke in the unit
The tenant cannot have pets during their lease agreement term
Never underestimate the power of a well-placed advertisement with a great description, clear photos and video of the property too. Let tenants know exactly what they’re applying for to avoid unqualified applicants.
Gather As Much Info As You Can Early On
Your first contact with the applicant typically takes place by email or over the phone. You should get all of the following information from them, if you can:
Names of those who will occupy the rental
All occupants contact information
Reason for moving
Occupancy date
Number of pets, if any
Smoker status
Learning the basic information about your applicant early in the tenant seeking process may help you to separate applicants who aren’t a good fit from those who are a fit. This is also an opportunity to let them ask questions to determine if your rental property meets their needs too.
Have a Screen Process Set Up
Once you have your potential renters lined up, you’ll have to choose which one will get to live in your property. It’s a big choice and you’ll want exactly what you’re looking for, and what you’re not. So...
Include rational tenant qualifications within the property listing
Use the initial contact to gather information on the applicant and set expectations upfront
Narrow down the list of potential tenants using pre-established criteria
Communicates Well
A good tenant will be very communicative from day one. They will respond quickly to emails and phone calls and show initiative when turning in documents. Everything will be on time (or early).
Beyond timeliness, a good tenant will be respectful in their emails and phone calls. While you shouldn’t choose a tenant based on a professional sounding email or a conversational one, you should keep an eye out for how they are addressing you. It should be respectful, even if it is more conversational.
A Quiet Tenant is a Good Tenant
More often than not, if you don’t hear from a tenant outside of rent payments and the occasional maintenance call, then you should be good to go. It may not be a bad thing if their previous landlord doesn’t have much to say about the tenant. It just means the tenant kept to themselves when necessary.
This can be a good thing! A tenant who calls you only when they need you is great. It leaves you time to focus on your other properties.
Remember, a quiet tenant, but not a silent tenant, is usually a good sign. It means they've settled in, are content with the home, and aren’t causing trouble.
And if you’re overwhelmed with the process entirely, a property manager can help you find the perfect tenants. Give us a call, we’ll be happy to help!
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