When most people decide to start investing in rental properties, there is often a great deal of concern about tenant selection. From tenants who destroyed the property to tenants who skipped out on rent, there are tons of less than pleasant stories. As a property owner, you have a lot to do with your tenant experience. Knowing exactly what to look for and where to advertise can help you find the right tenant for your property.
Create Your Ideal Tenant
You're required to abide by the Fair Housing Act, but this doesn't mean you can't have any say on who resides in your property. Prior to screening applicants, create your ideal tenant. This should create a picture of some of the characteristics you want your tenant to have. Salary requirements, number of pets and family size are just a few of the points you can ponder on.
For each point create a must-have and a possible list. Take pets for example. Your must-have category could say no more than two pets, but in your possible category, you could make an exception if the combined weight of all the animals was no greater than 75 pounds. Create this list and use it as a bar by which you measure all your potential tenants. While it is discriminatory to deny a tenant based on their disability, sex, age or race, there are a number of things you can require.
Know Where To Advertise
Where you advertise will have a lot to do with the type of applicants you attract. You can take the information you collected when creating your ideal tenant to help you determine what you are looking for. For example, if you're looking to market your property to a family with small children, you probably don't want to advertise your listing in the local college's newsletter.
Make certain that you advertise in those arenas that match up with the demographic you are targeting. If you're looking to attract families, contact local child-friendly businesses and ask if you can hang up your flyer. Local parenting publications are another avenue you could consider as well. If you are seeking a younger tenant, libraries and coffee shops might be a couple places you should consider.
When it comes to selecting the right tenants for your rentals, patience is key. It's best to give yourself time to go through applicants, instead of selecting the first person you meet. The more effort you put into your search, the better your tenant experience will be.