Problematic renters are the bane of being in the rental leasing business. After working hard to purchase or build a rental, the last thing you want is to lease it to someone who doesn't pay rent on time or causes disturbance to neighbors.
Landlords invest a lot of time and money into finding good tenants. However, if you're an accidental or first-time landlord, you may not know how to go about deciding who should and shouldn't be your tenant. Plus, you can easily find yourself on the wrong end of a discrimination lawsuit if you're not careful with how you vet and choose your tenants.
To help you do things correctly, we're sharing a few tactics you can use to keep terrible tenants away from your investment.
Tenant screening is the go-to method for landlords who want to find the best tenants. In fact, 90% of landlords across the U.S. do some form of background checks on prospective renters.
On your own, you're able to screen a tenant to a certain extent and make a fairly sound decision. For example, you ask for a rental applicant's employment and credit history. With this information, you can establish whether the renter has the financial capacity to meet their rent payment obligations.
However, paying rent on time isn't the only thing that makes a good tenant. You can have someone who pays six months' rent in advance, but what good are they if they're notorious noisemakers who cause neighbors to have sleepless nights?
Comprehensive tenant screening involves checking an applicant's rental history and criminal background and even calling previous landlords to ask about their experience with the applicant.
At this level, it's more efficient to outsource the job to a tenant screening service. They have the tools and expertise to thoroughly screen a rental applicant and weed out the bad ones.
Using tenant referrals is a fairly reliable alternative, especially if you don't have the time to screen a tenant or don't want to pay for a screening service.
If you already have some good tenants, there's a chance they know a renter who's just like them. You can bank on the old adage, birds of a folk fly together!
When a vacancy arises in your multi-unit rental property, ask them to recommend the unit to their friends. This, coupled with your own basic screening, can get you a good tenant.
You can also incentivize your current tenants to bring you good tenants. For example, you can offer an attractive discount on a month's rent for every successful referral.
Professional Property Management
Being a DIY landlord means you have to take care of everything, from property marketing to tenant management. You can do away with all that trouble by hiring a property management company.
These companies have their own strategies for finding good tenants, so you can rest assured that bad tenants won't find their way to your property.
Rental Leasing Done Right!
Despite the glamor of being a landlord, rental leasing is a tough business. Dealing with tenants from hell can make your life stressful and miserable. Thankfully, you can deploy these strategies to avoid problematic renters.
If you're ready to go with option 3, you're in the right place. PMI Minnesota, a full-service property management firm in Brainerd, MN, with lots of experience, is here to ensure your property gets the best tenants.
Contact us to learn more about our service.