Are You Ready to Rent Your Investment Property? Here Are Five Tips for Finding Great Tenants

Are You Ready to Rent Your Investment Property? Here Are Five Tips for Finding Great Tenants

Trusting another individual with your property can be nerve-wracking — it's difficult to gauge how well they'll care for their home from a viewing and rental application alone. However, there are several steps you can take to help ensure that you select responsible tenants that will take good care of your property while they live there.

1. Research your rental market. 

Do you know how much similar-sized units near your rental property are renting for? What amenities are they offering? (Onsite laundry, parking, utilities included/excluded, etc). It is important to make sure what you're offering is aligned with what is normally offered in your area. This will make the renting process go much smoother For example in Milwaukee, tenants typically always pay for their own gas and electric bills, however in other areas it may be more common that the landlords foot the bill.

2. Make Your Home Desirable 

Always consider the tenant perspective when listing your rental property. When creating your rental listing, show your property at its absolute best and list its attractive features.  The listing should be well written with proper capitalization and full sentences, even if it's only going on Facebook Marketplace.  Include plenty of photos that are staged nicely to show the full potential of the home both inside and out.

If you want the best applicants, strive to be the best property!  You need to attract tenants who are looking for a home that they will love, care for and feel safe in.

3. Have A Thorough Application Process

Don't be afraid to ask for in-depth information from your applicants.  The more you know about them the more you can assess what kind of a tenant they'll be.  An application should ask for:

• full name
• the applicant's job & their supervisor
• their income 
• current address
• government identification (i.e. a photocopy of their driver's license)
• social security number (for the credit and background check)
• next of kin or an emergency contact
• previous landlord references
• any additional info you think is necessary

The best rule of thumb when screening tenants is no tenant is better than a bad tenant. If no one meets your criteria on the first round of applications you will have to try again. Never settle when selecting tenants.

5. Check References 

One of the most important things you can do when choosing a tenant is check their references.  At least one reference should be a past landlord, and it's great to contact a current employer as well.  Favor applicants who can prove they've been a good renter in the past and who seem to have reliable employment.  

When calling references, have a prepared list of questions.  For past landlords, you'll want to ask about their cleanliness, if there was any damage to the property, noise complaints, or missed rent.  When speaking to an employer, make sure to ask how long they've been working there, whether they're a reliable worker, whether they're respectful, and if they can see them continuing to work there for the long term.

REI Pro Tip - Ask the previous landlord if they have any vacancies. This question will help distinguish the real landlords from the fake landlords. Any real landlord will  be able to answer this question on the spot without any hesitation

6. Meet Them!

I have met every single one of my tenants before renting to them. Always meet potential tenants in person.  See If they have a pleasant demeanor, if they're easy to talk to and are polite to you, and whether they seem to take care of themselves.  Trust your gut — if you have a bad feeling about someone then it may be best to keep looking.

Do you need more advice on tenant screening and management? Book a real estate investing clarity call!