Any landlord would want high quality tenants for a hassle-free investment. So, what are some key traits or habits of a great tenant you need to know?
It should go without saying that a good tenant is responsible enough to abide by the lease terms and pay rent on time, among other things. A few points to determine a tenant’s responsibility: interview previous landlords, observe if they have timely communication skills, and see if they commit to doing what they say they’ll do.
Does your applying tenant have the ability to pay rent? And on time? Reviewing their credit report can give you a hint, although it doesn’t exactly tell the whole story. You may also want to note if 30 percent of their monthly income can cover rent. If you’re leasing to students or others who can’t afford property on their own, you might consider a co-signer and that they apply as well. If a potential tenant is self-employed, request for bank statements and tax returns.
A thorough background check is needed to verify all information supplied by an applying tenant. Some may be hiding past evictions or a job loss. What else could they lie about in the future if they are dishonest about such details?
As an investor, it’s ideal to have a tenant that’s around to pay rent regularly and for as long as possible. Do they have family in the area or a full time job nearby? These are some factors that could decide the longevity of their stay on your property.