The success or failure of your rental property will be determined by the tenant you choose to live in it. When a bad tenant moves in, it can lead to stress and financial loss on the owner’s part, but when a good tenant moves in, it can lead to peace and financial security.
There are qualities that you can look out for when choosing your tenant, that will provide you with an indication and ensure that you find the perfect tenant for your rental property:
1. The ability to afford rent
The first thing that a landlord must look out for, is the potential tenant’s ability to afford rent. The tenant’s ability to afford rent can be verified by their financial responsibility. If the potential tenant does not have the ability to pay rent each month, the landlord could be forced to evict the tenant and suffer financial loss. Landlords often require that a potential tenant’s income is equal to three times the monthly rent. If the potential tenant is already financially responsible, their income should be efficient enough to make the rent payment every month.
2. Paying on time
The willingness to pay rent on time each month is very important when looking at potential tenants. If the tenant does not pay on time, it can lead to a lot of stress for the landlord. This can be entirely avoided if the landlord chooses a tenant that has a solid history of paying on time.
3. Job stability
When looking at a potential tenant, it’s very important to consider their job stability, as this could influence their ability to not only pay rent but to pay on time as well. If the potential tenant has a history of switching jobs often or long periods of being unemployed, it could lead to the tenant missing their rent payments.
4. Neatness and cleanliness
A tenant will always eventually leave the property. That’s why it’s important to look at potential tenants who are neat, and responsible. Neat and responsible tenants will leave the property in a good condition, which means that the landlord would not have to pay for damages to the property.
5. Background checks are key
A potential tenant who has no regard for the law could potentially have no regard for your rules or your property. Landlords should do the necessary background checks on potential tenants, to ensure that they do not have a negative past, that could lead to the damage or neglect of the landlord’s property.
When choosing a potential tenant for your rental property, it’s very important to remember that no tenant will be entirely perfect. The landlord must decide what the term “perfect tenant” means to them, and it’s completely a personal opinion.
If you have many applicants for your rental property, take the time to make a well-informed decision. It’s better to have your rental property vacant for a little while longer than having the wrong tenant move in.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE)