Owning a rental property is a great way to build wealth. However, choosing the wrong tenants can actually cost you money!
It's critical to factor in maintenance costs for your property. But if you make an error when choosing tenants, you could also end up paying for damage to your property. Or worse still, you could face a situation where rent is not being paid on time. This could lead to expensive legal battles.
So what is the best way to choose the best tenants for your rental property? Read on to find out more.
Do Your Homework
When it comes to picking tenants for your rental properties, you really need to put systems in place to research the applicants and their backgrounds properly. Don't just trust your gut.
Tenant screening should involve verifying the applicant's income, including proof of employment. You might want to see if you can find them on social media, to be sure that they are who they say they are.
You also will want to check out their financial assets and rental history. Avoid anyone with a poor credit history. You should make sure you get references from their previous landlords too.
Meet Them in Person
It's tempting to think that everything can be done online, but it really helps to meet potential tenants face to face. This is especially important if you have multiple eligible applicants that you need to choose between.
It's helpful to try to build a rapport with your potential tenants. You can ask them open questions about what they liked about their previous property, why they're moving within the local area, and what their plans for the future are.
All these questions will help you to figure out if they are the kind of tenant that you want, and if they will stay in your rental property for a decent amount of time and look after it well. After all, long-term reliable tenants are every landlord's dream!
Look After Your Rental Property
This might sound like an irrelevant point in relation to choosing tenants, but hear me out here. If you ensure that your property is maintained to the highest standard you can manage and afford, you're more likely to attract the right kind of tenants.
If you keep up with repairs and maintain the interior of the property to a high standard, you show potential tenants that you are a landlord who cares about the property. In turn, they are then much more likely to look after it when they are living there. Being a good landlord will help you to attract responsible tenants.
Need Some Help?
Managing rental properties can be time-consuming and at times overwhelming.
If you're looking for some help and advice in managing your rental property in the Denver area, don't hesitate to get in touch with us. We can offer advice and support in many areas of property management.