Finding Good Tenants for Investors:
One of the most troublesome aspects of being a landlord is when tenants damage your property and you get stuck with the bill.
From complete trashing to total destruction, and even worse, there are plenty of horror stories around that I collected over the years working with investors and dealing with tenants.
If you think finding a good tenant depends on luck, you couldn't be more wrong, its all in teh planning and how you approach the process.
Some people have the personality to be good landlords. . others don't !
Is all about taking the following measures to reduce risk concerns about your rental that could assure the well-being of your rental property.
Let's start with tenant screening:
The most important factor in renting properties, successful and savvy landlords do not cut corners in this step. It is simple. You get to qualify based on the pain they exerted to past landlords. . as simple as that is, many people do not underwater this process fully.
To get a good tenant, a landlord must be thoroughly professional about the entire tenant screening process, and verifying past landlord references is an essential part of every standard screening process. Do your due diligence and call them. .question them about specific past performance. In my opinion, even a credit rating is not as powerful knowing that they paid their rent on time for the last two years.
Another trick I used many times before is the CAR TEST
Thank you. .I actually created it myself based on my past experiences and being an owner for a multi-unit building.
The car test is simple. .after taking an application, I walk the applicants back to their car. . .for a look. . I want to see the condition of the interior of their car.
Clean is good news. .
Smelly and hamburger wraps & trash all around is bad news. .
Another trick I used and recommend is to photograph and videotape as in before and after their occupancy in the presence of the tenant after he / she has finished signing the lease. This evidence will ensure tenants look after your property and is a powerful message before they move in. . I know exactly the condition of the property before you are moving in.
Other points that are as important is the amount of the deposit taken. This could also be tricky for the landlord if they do not know the laws protecting tenants in their local areas. In Maryland for example, it is illegal to ask for more that two months worth of deposit amount.
Ultimately, if you don't have the disposition to be a good landlord, call a property management company that is local and ask for references.
An Orange County Property Management Company in California says it beautifully. .
" rental property owners that have taken the position that hiring a professional property management company to manage their rental is a waste of money, especially when they could simply manage it by themselves. I believe this is a “penny wise, pound foolish” approach. Of course, the person who decides to do it themselves will save the monthly management fee they would have paid to their property manager, but they risk losing much more in the long run"
As a broker for Herboso & Associates, we do not manage rentals for our clients but we will be happy to refer you the ones that are best for your area.
We will be happy to market your property and attract the most people possible when you put your rental property in the market with us!
Broker - Solutions Finder
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Herboso & Associates llc
My real estate knowledge is always up-to-date. For expertise you can depend on, call me when you have questions about the market or are ready to make a significant move. . .Quality representation is not expensive, its priceless!