Managing a rental property is an exhausting job because a lot of challenges have to be handled efficiently to ensure a smooth operation. But, it is an excellent way of earning passive income, and with the advent of companies like Airbnb, more and more people around the world are registering their rental properties as tourism thrives even during the recession.
The life of your rental property will depend a lot on the kind of tenants you select over the years. Therefore, we have discussed here five crucial tips that you must consider before hiring a tenant so that you do not end up with people with excellent nnn tenant profiles.
Adhere to the law
You shall treat every prospective tenant equally and must make sure that all the legal documents are properly filed, and there are not any loopholes in the contract. Never make the mistake of differentiating between tenants based on their nationality, cast, or color because it is a punishable offense in developed countries like the United States.
Run a credit check
You shall always look to engage tenants who are financially responsible, and one way to gauge them is to know how much they earn and how punctually they pay their utility bills. Therefore, ask for pay stubs, and make sure that tenant’s income is at least three times more than the rent so that you do not end up with a tenant who is unable to pay the rent on time. Moreover, call the tenant’s employer directly to validate the integrity of the stated income so that there is no chance of fraud.
Run a criminal background check
You have to make sure that your selected tenant does not have any criminal streaks and one way to ensure that is by running a criminal background check. Criminal information is a public record and can easily be accessed at courthouses, and all you are going to need is the name and date of birth to perform the check. Be aware that tenants with criminal backgrounds will try to fool you by giving false credentials. Therefore, always ask for a valid id card and keep its photocopy with you for the record.
Check the tenant’s rental history
You can also get a fair idea about a tenant’s rental history by contacting at least two of his landowners and asking them about your reservations. For example, does he pay bills and rent on time, how well does he take care of the house, did he give 30 days’ notice before moving out, etc. As a result, you will find yourself better informed about your tenant, and you will know what to expect from him in the future.
Number of inhabitants
Make sure that you do not rent your property to tenants who have more than two people per bedroom because more the people, more will be noise, and more will be wear and tear of your property. Therefore, be wise in your choice of the tenant so that your property does not suffer in the long run.
Now that you know about various aspects you must consider before selecting a tenant, there shall be no excuse for not being able to choose a suitable tenant for your property.
Interesting related article: “What is a Landlord?“