Being a landlord isn’t as easy as it sounds. There’s a lot that you need to know before you start!
For starters, it's important that you familiarize yourself with the housing laws. The last thing that you want to do is to rent out your home without knowing your responsibilities!
Don’t forget to check your insurance as well. For instance, it might be a good idea to see if your policy covers tenant damage.
Speaking of which, you also want to take the time to screen potential tenants. After all, they will be the ones who will be living in your property!
Need some tips? Then you're on the right page! We'll be going over everything that you need to know about the topic below.
So be sure to keep on reading!
4 Tips For Choosing the Best Tenants
Want your rental business to be successful? Then you’ll want to find the right tenants. Here are a few things that might help:
1. Make Sure They Have Good Credit
This goes without saying but you want someone who is financially responsible. Think about it—someone who pays their bills on time is probably someone who will also pay their rent on time!
For this reason, you always want to perform a credit check. Sure, it might cost you a bit but it’s worth it. If anything, it'll give you an idea of how likely they are to meet their future rent obligations.
2. Perform a Criminal Check
You also want to perform a background check. Not only does it protect you as a landlord, but it also protects your neighbors.
Generally speaking, all you need is their name and date of birth—that will give you the information that you need. Keep in mind, however, that those with criminal records may try to falsify their details.
For this reason, you always want to verify their identity with a piece of a valid ID.
3. Contact Their Previous Landlords
If possible, talk to their previous landlords—that way, you’ll get a better idea of what they’re like as tenants.
Were they evicted because they didn’t pay their rent? Did they cause damage to the rental property? Were they respectful? These are some questions that you might want to ask.
4. Take a Deposit
Don’t want to deal with time wasters? Consider taking a deposit. Not only will it help you find serious tenants, but it'll also protect you if they fail to pay or if they damage your home.
For instance, it’s not uncommon for landlords to request a month’s worth of rent as a deposit.
Try not to set the figure too high, however, as that can might make people reluctant. On the flip side, you might attract bad tenants if the amount is too low.
Finding the Right Tenants
As you can see, there are several things that you want to consider when you're looking for tenants. If anything, the screening process is super important!
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