Every landlord shares the hope of filling their property with great tenants. By “great tenant,” I mean the tenant most likely to pay the rent, on time, month after month. In addition, you want a tenant who is likely to take great care of your property as long as they are there.
Your goal should be to generate as much interest and as many applications as possible for each vacant property you market. The more applications you have, the more likely you are to find a great tenant for your property.
Market Research
The first step is to be sure that you are asking the appropriate rent amount based on the property, the condition of the property, the location and the amenities. There are many online resources that offer comparisons of rental listings at the zip code and often neighborhood level. Check these out to see what the competition is asking and what the market rate is.
Once you determine the appropriate rent to ask based on your market research, you will want to create a compelling description for the property and take pictures, inside and out. Then you will want to list the property for lease on the same websites where you did your research.
Make Sure Your Ad Includes Your Great Tenant Criteria
Now here is the real trick: You want to be very clear what the rent is and how much upfront money is required. You may choose to require a security deposit and possibly first and last month’s rent as well. You will also want to make clear that you will do a credit and criminal background check on each applicant. Also make it clear that you need to see the last 60 to 90 days of pay stubs for each applicant to ensure they have the income necessary to pay the rent.
Additional Criteria
What are your additional criteria for qualification? My suggestion is no evictions in the last three to five years and that the tenant(s) earn three to four times the rent amount, as evidenced by the pay stubs you collect. Their criminal history may be a factor in your decision as well, but legally it cannot be the only factor in your decision-making.
Be sure to have a standardized application and application fee that every applicant has to fill out and pay before their application will be considered. Make clear in your ad that only completed and signed applications accompanied by the required application fee will be considered. This is to cover your costs, including your time, and the credit bureau fees. Pets, if you choose to allow them, and the required deposits are something else to think through and have a standard procedure for.
Protect Yourself
Under no circumstances do you want to put your cell phone number out to the world. Use a second number or sign up for a service to get a virtual number. Your main goal here is to only receive qualified applications from prospective tenants who are fully informed. Your second goal is to not be overwhelmed by scam artists and those unlikely to live up to the terms of their lease. You will still receive many emails and voice messages that you will have to sort through and make return calls to, but these tips should make the process manageable.
Showing The Property
Once you begin returning calls, you will be able to decide who you want to invest your time in with showings. Obviously, you want to only show the property to qualified prospects. You may want to tell everyone that you will be at the property at a certain day and time. For instance, you may say that you will be there Thursday evening from 5:00 to 6:00 p.m. and Saturday from 1:00 to 3:00 p.m. At these open houses, you can provide application materials as well.
Hire Someone
If these steps seem overwhelming, there is another way to ensure you have great tenants. You can hire a reputable licensed property management firm to do all of this for you. It may be well worth the money, because your personal time is the most valuable asset you have.
Whichever route you choose, make sure you protect your investment by filling your properties with great tenants.