“5 Steps In Finding The Perfect Renter” written by Mike Marko
As a property manager, your most important task is to rent the properties you are managing as fast and possible when they are vacant. During this process, it’s really important to find a tenant, and if possible the perfect tent for your property right away.
When your rental property units are unrented and don’t have to pay tenants you will not earn any profits. If you are unable to fill your properties with paying tenants on a consistent basis, your rental property business will soon face bankruptcy.
So even if you are facing renting multiple units or not getting a lot of applications for the unit to be rented you still should always keep in mind to be really careful in accepting tenants.
Probably the most important key to finding the “perfect renter” is conducting a tenant background check.
In this article, I will go through the 5 steps in finding the perfect renter for your property.
Doing The Tenant Background Check
Conducting a tenant background check on every applying tenant will help you to avoid any problems that may arise between you and your tenants in the future. Developing the process and what you are looking for in a background check is also a stepping stone to help you achieve the success in your business. When you are able to find and choose good tenants, your rental property business will be easier to manage since you will not have to fix any problems that a bad tenant usually causes.
To make sure that you are on the right track in choosing good tenants, you have to come up with an effective process of carrying out the tenant background check.
Your primary goal should be to definitely catch the best tenants only.
Step One – Phone Interview
Getting a lot of inquiries about your property feels good, right? This is one good indication that people are interested in your property and they would like to see it. The process of conducting the tenant background check will start here.
Normally your first contact with possible tenants is over the phone when they are inquiring information about your property for rent. Every time you have contact with a possible tenant either through phone calls, emails or text messages it is best to use these contacts to begin to qualify those who are really interested in renting to over those you are not.
Ask The Right Questions
When talking to a prospective renter and when reviewing their rental application you will have access to their personal information. It is best to begin to verify the information you have and ask possible questions that will qualify them as the following:
How many rooms do you prefer?
How long did you rent you last apartment for?
Why are you moving?
How many adults will be living there?
Do you have any pets?
Use Their Answers
During the process of getting to know the tenant, meeting them in person, as well as talking to them on the phone you should have a good idea of their character. Take the opportunity to develop a feeling if you would want to rent to the person or not.
In getting information from answers to your questions, you may begin to feel that the applicant does not fit to your standard for renting the property. If this is the case and the tenant just isn’t right for that particular property, then you should save their information for future purposes. Track them according to their inquiries.
However, if the applicant fits your standards to rent to, you should go to the next step in the rental process which is scheduling a time to show the property to them.
Step Two – Show The Property
When an applying tenant passed the pre-qualification process, it is now time to meet the prospective tenant and continue building a good relationship with them. Having a good landlord-tenant relationship will help you in the future. The process of building a good relationship with possible tenants is very important during your tenant background check process.
Showing The Rental By Appointment
When showing the rental to each prospective tenant on an individual basis can be rather time-consuming. You must schedule a time to meet, do a walkthrough of the property, and take the time to answer all of their questions.
If you are very busy in your rental property management business then you might only want to do personal appointments for the most qualified renters that you identify in the background check process.
Otherwise showing the property to the masses at a set time might be the best option for you
Setting Up A Open House To Show The Rental
If you have received numerous applications for a property and don’t have the time to show the rental individually, you might want to just set an open house to show the rental.
When doing an open house it shows the demand for your rental property. It’s very effective to give the prospective tenant an idea that he is competing for the property that he is applying for. This will definitely increase their interest in your property.
In this process, make sure to keep a sign in list and track of all the attendees for future purposes. During this process take note of the applying tenants who tell you that they are no longer interested in the property.
Step Three – Analyze The Application
Make sure that every applying tenant fills out a rental application completely. Along with it, the applicant should also sign any permission or authorization letters which allows you to perform a credit check on that person. The rental application form along with the other background reports will be your basis for analyzing the application of a potential tenant.
Reviewing and verifying the information from the rental application, personal interviews, and showing the rental you should have a good understanding of how your possible renter is. During this process, you will be moving into the decision making process. But it is best to make sure you review and analyze everything first.
Be consistent with the process you do in evaluating every rental application form so that you won’t get confused in choosing the perfect tenant. Being consistent also helps protect you from being accused of discrimination or being unfair.
The next action to take in doing the tenant background check is for you to check for disqualification factors. This will help you to filter out those who will not fit your qualifications of a good tenant.
Step Four – Reference Check
A part of a rental application form is used to list the references of an applying tenant. An important part of doing the tenant background check is calling all the people, creditors, employers listed in the references because it will help you get to know your potential tenant better. It could also reveal whether or not an applying tenant is honest in filling up the application form.
In this part, you should begin to prepare the questions you will ask the tenant, and make sure to uncover everything that you are able to during this process. Knowing and verifying if the tenant is employed or if the tenant has a clean criminal background are the things you want to know before asking this during the interview with the tenant.
Checking their references helps you uncover a lot of information then you should begin to validate if the information provided by the tenant is actually correct. When checking references it is always best to get phone numbers for references from the internet or some other source to make sure that you are talking to the actual reference and not someone faking a reference
In reviewing and verifying references you should develop questions that you will ask from the tenant for this will help you later on in decision-making process.
Step Five – Decision Making
Now that you have completed your background check and have everything in hand, it’s time for you to decide whether or not you will let the applying tenant rent your property. If you have any unanswered questions that came up during the reference check, take the time to get answers before making a final decision to rent the unit to them. During this process, there is still a possibility to reject the potential tenant, if you get bad information or negative records after doing the tenant background check.
It is never wrong to reject a tenant if that is your decision after the results you got from conducting a tenant background check on an applying tenant. Even if they have given a lot of time, you still have the right to reject their application if you feel like this will not work out in the long run.
If you decided to reject an applicant, make sure to tell the applying tenant why you made this decision. Support it with the reports that contain the negative information about the applicant. It is also important to give the applicant a chance to correct any wrong information that is contained in the reports.
When you do find the perfect renter to rent to you must be prepared. Have all the contracts and agreements ready that need to be filled out and signed to start the rental process with the new tenant.
In following the simple 5 steps almost always allows you to find the perfect renter for your rental property. If you use these steps consistently I expect they will help you in your future transactions with your prospective tenants.
Always remember that having a standard and a strict tenant background check will help to save you and your property from any problem in the future.
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