Using an investment property to grow your wealth can be rewarding, but without the right tenants, it'll become more stressful.
The right tenants can lead to a smoother and more profitable rental experience. To avoid various issues such as property damage and legal troubles, you want to spend time screening your tenants.
We know how hard tenant placement can be, so we've put together this guide. Below, you'll read about several key dos and don'ts that'll help you as you start managing your rental property.
Do Thorough Tenant Screening
The first thing you want to do is conduct a comprehensive tenant screening process. Running a background check is a good start, but you'll need to take more proactive steps.
Credit checks and verifying rental history and income can be very helpful. The more information you have, the easier it will be to make a decision.
Don't Discriminate Against Applicants
It's against the law to discriminate against potential tenants. You cannot make your decision based on race, gender, or religion.
Fair housing laws are in place to ensure equal opportunity for all qualified applicants. If you aren't familiar with these regulations, be sure to review them before you start the tenant placement process.
Do Communicate Openly
Having a positive landlord-tenant relationship is beneficial for both you and your renters. Do your best to maintain open communication with your tenants.
You should encourage them to report issues and respond to their concerns quickly. If you take action to show your tenants that you care, they will likely be better renters. Having an open line of communication will also allow you to mitigate issues in the future more easily.
Don't Ignore Maintenance Concerns
Rental property management is extensive, and when you have tenants in your property, be sure to address maintenance issues right away. The condition of your property will contribute to your tenant's satisfaction.
It will also encourage responsible behavior. Take a proactive approach to prevent small issues from becoming larger problems.
Do Set Clear Rental Criteria
When you're searching for the right tenant, be sure to set clear rental criteria upfront. Communicating clearly about your expectations will help streamline the process.
Being transparent about your expectations regarding income, credit score, and rental history will ensure fairness and help attract reliable tenets.
Don't Neglect Regular Inspections
Property management is tough, but when it comes to finding the right renters, you'll need to prioritize inspections. Your tenant placement process will be much more difficult if there are underlying issues with your property.
Tenant Placement Tips and Tricks
Tenant placement can be a challenge for all investors, whether you own one property or 50+. A lot goes into choosing the right tenants, and it can be time-consuming.
By following the tips above, you can foster a positive relationship with your tenants and create a stable and profitable rental property investment. Working with a real estate management team can also be beneficial when it comes to choosing the right renters.
Here at Blue Ribbon Property Management, we know how to support you. Our goal is to make your life easier through property management. Get in touch with us today!
