Whether you’re an experienced investor or new to it, the quality of your tenants is a heavily discussed topic. When looking for tenants, you hope for stable, long-term tenants. The cost of turnover, repairs, and evictions is what turns so many investors away from real estate. That is why knowing what a good tenant looks like ahead of time is crucial. Whether you’re handling your property yourself or have a company like Wisco Turnkey managing everything for you, knowing this information is valuable in asking the right questions.
What To Look For In Potential Tenants
Accountability
When looking into your potential tenants’ former payment history, you should look out for inconsistency, timeliness, or gaps in payments. If you do come across these issues, it is an excellent sign to reach out and ask the tenant to describe what happened. Most likely, if they place the blame on any outside factors, they will not be a reliable tenant. However, if they explain the situation reasonably, they may be a reliable applicant. The critical takeaway at this stage is to listen to how your potential tenant responds when you ask about inconsistencies.
Past Legal Involvement
Some investors run into issues with people who have sued their landlords in the past. That is why getting in touch with your tenants’ former landlords to learn more about them and their tendencies is necessary. Another easy way to go about this is to look at public records to see what, if any, type of lawsuits that they may have been involved with.
Stable Income
Before you let anyone move into your property, asking for proof of income is an important step. There is a variety of different income forms, from self-employed to corporate workers. Asking for four months of pay stubs, tax returns, or even budgeting practices can give you an idea of whether your tenant can make the monthly rent.
Lifestyle
Is your new tenant clean? Do they like to party? Knowing more about their lifestyle can help get the most desirable tenant. A few ways to dive into this is to walk them to their car after a tour; this is typically a good indication of cleanliness. Additionally, you could ask to walk through their current residence. As for their social life, you can always refer back to their current landlord to ask about any disturbances they’ve encountered while being a tenant, as well as screen their social media to learn more about how they spend their time.
Screening tenants can make a massive difference in the time you have to spend monitoring and dealing with your property. When you take the time to learn more about your applicants, you should be able to find a quality, long-term tenant. If the process of dealing with tenants, screening them, collecting rent, and potential turnover seems like too much for you, it may be a good idea to look into a property management company. At Wisco Turnkey, we handle everything from property issues to rent collection, so you don’t have to. When you work with our team of seasoned professionals, we find properties to match your goals. You’re never stuck handling tenant issues on your evenings or weekends. Instead, you get to enjoy immediate returns while we take care of the rest. Schedule a call with our team today to discuss your investment goals.
