Those actively into property investment such as a residential or commercial rental portfolio and know-how to run things can attest to the fact that having such assets can be profitable.
However, investors also understand that success in their ventures can only be achieved when they have great tenants.
Finding tenants for your rental property can be easy, but finding those who can ensure the long-term sustainability and return on investment of your property.
Not only will you be able to save time and money from constant tenant turnovers, but you also get the assurance that your rental property is not at great risk with well-meaning and reliable tenants.
Getting the right tenants
Of course, it all starts with the right vetting process to get the most easily manageable and reliable tenants, such as those who do not miss out on regular monthly payments, has a good credit background, have no record of evictions from previous rentals, can provide great references, and earn three times more than the rental rate.
Do remember, though, that while landlords have the right to choose their tenants, they need to adhere to fair housing laws in their respective locality.
When preparing the application form, always be reminded that questions asked need to be business-related, so here are some of the key questions that a rental application must-have.
Personal data and background
It’s always important to get the most accurate personal information from potential tenants. As the landlord or property manager, such information is needed to contact the tenant, used to verify basic details, handy when performing background and credit checks.
The questionnaire needs to ask for the full name, birth date, address, phone number, email, and person to contact in the event of an emergency.
While it may be tempting to ask for their social security number, the information is not necessary nor is it recommended because it is confidential and sensitive information that should not go into the wrong hands.
Monthly income and employment history
It is fitting to ask for details of the tenant’s employment status, as well as the name of the employer or company, nature of work, address, contact information, work start date, position at work, and monthly pre-tax or gross income.
This will help property managers and landlords determine if the candidate meets the income criteria and provide proof of income via payslips, tax returns, bank statements, etc.
Add a section for applicants who are self-employed or with multiple income sources.
Rental or occupancy history
A standard period of the past two years of tenancy can be asked from the candidate, as well as their current residence.
You can ask for the name of the current landlord, as well as move-in and move-out dates. Getting the contact information of the current landlord is vital in checking if the candidate has broken a lease or had problems with neighbours or the rental property management.
Schedule of regular rent payments, deposits and other fees
Before asking the following questions, you may ask if the candidate would be willing to make a deposit or advanced payment, as well as a security deposit for untoward incidents or damages caused by the tenant that may occur within the vicinity.
Financial liabilities, evictions, or bankruptcy
Asking the following questions can help landlords or property managers choose to accept or reject an applicant, but it is critical to know the reason for eviction if any.
Remember, the key to ensuring the longevity and sustainability of your rental property is largely in part due to reliable and responsible tenants, so make sure to have all the required information on hand to help in selecting the right tenants for your rental property.