Top 5 Traits Of A High Quality Tenant
There are several odd stories about tenants who use rental properties as drug labs, bong stores, cat rescues etc. As odd as those stories may seem, they are absolutely true. Almost any landlord could end up with any of such tenants if their tenant screening process isn’t done appropriately. So how would you know if a tenant will turn out to be a good one or otherwise? There are several telltale signs you should look out for to know is a tenant is a high quality one or not.
Traits of a top quality tenant
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First-rate tenants are responsible
It’s easier to rely on a responsible person to do the right thing at the right time. A responsible tenant will pay the rent at the right time each month and respect the lease terms. You can sit back and relax when you have a responsible tenant and feel confident that your property is in good hands. Here’s how to tell if a tenant will be a responsible one:
Credit report
Start by looking at the prospective tenant’s credit report. This will let you know how financially responsible the potential tenant is. But while the credit score is a good indicator, it may not actually tell the whole story. So read the entire credit report. Sometimes, there might be a good reason for a low credit score like a one-time medical bill from six years ago. In fact a low score isn’t much of an issue with a potential tenant who has been paying their bills at the right time for several years compared to a prospective tenant who is always late with bill payment.
Talk to past landlords
Responsible tenants are known for making minor fixes around the home and will contact the landlord immediately when a major fix is required. Interview previous landlords if the potential tenant did any of such things while using their property.
Observe their communication skills
Responsible people are often conscious about how they communicate. They won’t hesitate to let you know if they can see the sky through the roof or if your plumbing system is faulty. So look out for potential tenants who respond promptly to your messages and disclose key information about themselves even before you ask.
Do they keep their word?
Responsible tenants do whatever they say they’ll do. For instance if you agree to meet on a showing and they arrive late because of traffic, they’ll mention that and apologize.
Even when you have a responsible tenant in your property, you should schedule regular inspections. Consider doing so once or twice a year to ensure your property is in good shape.
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First-rate tenants have the ability to pay the rent
A top-quality tenant will be able to pay the rent at the right time always. One of the easiest way to determine if a renter can afford your property is to verify their income. They should earn enough to the extent that only 30% of their income goes into rental payment. But take a careful look at their credit report to figure out how much debt they owe.
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First-rate tenants are honest
Some potential tenants lie on their applications. It’s absurd but true. You shouldn’t rent your property to someone who lied on their application. In most cases, they are hiding something that could stop you from renting to them. Also, if they lie on their applications, they can lie about so many things later on especially after moving in.
So make sure you verify every detail on the application. Start with a background check which will provide relevant details about any criminal activities. Background checks will also disclose evictions because these goes to court. You should also call the applicant’s employer to verify their employment status and income.
What about self-employed applicants? Whenever you have a self-employed applicant, ask them to show you six months of bank statements, three years of tax returns as well as a savings account with at least three months of rent in it.
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Longevity
Many top-quality tenants often stay in a property for as long as possible. Most especially if they have ties to the area such as family, a business, or a job, they are more likely to retain the property for a year or more. Whenever you have such a top-quality tenant in your property, you should consider giving them an incentive to renew at the end of the lease term. Such incentive could be not increasing the rent or improving the property such as equipping it with better appliances.
Final thought
Don’t downplay any aspect of your tenant screening process. One wrong move and you may end up with a bad tenant. Successful landlords are the ones with top-quality tenants and you shouldn’t miss the chance to be one.