Leasing a property is an enticing option for owners who want to earn additional income, but renting out has its disadvantages. There are tenants who will make it difficult because of their frequent complaints or delays in payment.
You may have the qualities of a good landlord, but that does not mean you will attract honest tenants. You must screen them properly to avoid the problems created by a bad tenant.
Background and Credit Checks are Important
Urban Property Agents agree that background and credit checks are vital to successfully choose a tenant.
You will have a difficult time demanding payment from a tenant who has a poor financial standing with his or her loans and other forms of credit. A potential renter who says ‘no’ to a credit check is a red flag. The financial situation of a tenant is an indicator of their readiness to lease a property.
Does a potential lessee have a criminal history? Is she respectful and honest? Character checks will help you determine which tenants will be good from those who will be bad. An interview gives you a glimpse into their behaviour.
A steady stream of income, whether through employment or a business, will determine a tenant’s capacity to pay the rent. If possible, get a recommendation from an applicant’s employer to allay any suspicion.
Get away from bad tenants by running appropriate checks to determine if the applicant is financially capable of paying you on time.
Number of People Living in the Property
Does an applicant have a big or small family? How many children will stay in your property, or will the lessee live alone? These questions will prepare the property, if it needs renovations, maintenance, or other improvements.
Leasing property offers income generating potential, but also comes with a lot of responsibilities. Screen tenants carefully to limit the headaches.