Having rental properties is a great way to generate recurring revenue. While this can be true, depending on the tenant, it could turn into a huge money pit for you. Finding the best and most respectful tenants to live on your property is a great way to avoid constantly stressing over what the inside of your property looks like. The process of finding good tenants can be difficult and sometimes it is just an endless cycle of rotating tenants. However, once you find respectful tenants that live on your property, it is important to retain them.
How do I find them?
We’ve compiled a simple checklist of tasks to perform when looking for the best tenants.
- Check the inside of their vehicle
- How they treat their own property is a good indication on how they may treat yours.
- Require references
- Ask for 3-5 references. Avoid allowing personal references, as friends or family may avoid being completely honest. It is best practice to ask for employers or past landlords.
- Know the laws on fair housing
- Understand your fair housing laws on a state and federal level.
- Verify the tenant has a steady income and employment
- It’s quite common for landlords to require their tenants make three times the rent amount each month. If the rent is $500/month, look for tenants who make at least $1,500/month.
- Perform a background check
- Make sure you are using an accredited company to perform thorough background checks. Some companies offer cheap services but can provide false information.
- Look at tenant’s prior rental history
- Did they stay at the same place for a while? If they have a history of short-term leases, why?
- Require renters’ insurance
- Tenants having renters’ insurance shows they take their living situations seriously. It also transfers risk away from the landlord.
- Use a thorough rental application
- This includes their name, income, employment history, number of people living in the unit, previous addresses of the past 5 years, how did they find the property, and a copy of their current renter’s insurance policy.
- Charging a small application fee such as $20 – $50 will show that they are seriously interested in the property. It’s also a good way to know that if they cannot get together $20 – $50, you more than likely do not want them staying on your property.
How can I retain them?
Keeping the best tenants is equally as important as finding them.
- Form a good relationship with your tenants
- Check up on them and ask if there is anything they need on a monthly basis.
- When maintenance requests are put in, tend to them as quickly as possible.
- Even if you cannot get to it right away, let the tenants know you received the request and communicate when you will be able to look at it.
- Welcome them!
- People love getting “goodie bags”. Welcome them with a goodie bag full of things that could be useful.
- Some property owners do water bottles, pens, and paper while others do things to use around the new property like cleaning supplies.
- People love getting “goodie bags”. Welcome them with a goodie bag full of things that could be useful.
- Leave your contact information for them somewhere visible
- Provide your tenants with your contact information on items such as a magnet. It will be easily accessible, and you can define the different ways in which you would like to be reached, such as by phone during the day and email at night.
Interested in learning more? Please email us at hello@veroinsure.com or call 773-945-6000.
Vero Insurance is a niche broker with a focus on providing insurance placement and risk management services to high-income families. Here at Vero, we love to provide you with exciting and fun articles to learn more about insurance and how it impacts your life. Visit our other blogs to find more information.
While Vero does offer a wide variety of personal insurance coverages, our main coverages include: personal umbrella insurance, auto insurance, and homeowner’s insurance.
