Let’s be honest. Being a landlord can be tough sometimes. You will have to face different sets of people, problems, and situations from A to Z.
Besides making sure that your commercial properties are well-managed, you would also want to get hold of almost-perfect tenants who will use your spaces responsibly. With this, you want to lessen your job’s burden by avoiding potential tenants who are untrustworthy, irresponsible, and sometimes rowdy (yes, they exist).
But wait! Like any other problem we encounter, there are actually ways on how to know and find the right tenants for your real estate money-spinner business.
Identify Your Benchmark
First off, you need to identify your overall standards as a landlord. Ask yourself: what qualities am I really looking for from a tenant? How do you want your commercial spaces to be utilized? Can the potential tenants customize or make some changes with the structures of your spaces? What is your process in terms of payments? Do you allow tenants with pets? And many more depending on your preferences and choices as the owner.
Setting standards is also a great way to manage your expectation from your tenant.
These things will clear your initial worries before you introduce yourself and your spaces to potential renters.
Educate Yourself About the Tenant
After you identify your benchmark, you now have to educate yourself and learn all the things you will require from a tenant. Yes, it is absolutely normal and legal to do this to your would-be tenants to ensure that you are dealing with excellent and stable people.
The easiest way to acquire information from them is through a rental application. There are tons of sample forms available online, plus you can customize the questions to cover all the necessary information from the renter.
After you checked all the information, you supplement it with an interview with the potential tenant. Ask all the questions related to their current situation and on why they need a place to rent.
Tip: Use the application letter as your guide. It’s like an HR officer interviewing a potential employee.
Identify also their previous and current employment, financial, and lifestyle status. This is to know if that person is financially capable of paying his/her monthly rental fees and what kind of person you are dealing with.
It is also essential to know their history as a tenant. This will allow you to do a background check and look for any criminal records about the person by contacting the previous landlord/s and other relevant persons.
Why is this important?
A landlord should make sure that the other tenants are safe, secured, and away from any possible threats or disturbances. Most importantly, the landlord needs to do tenant screening, for it does not only guard the property but also safeguard the landlords against possible damages or offenses.
Make sure that Tenants Agree on Your Rules and Regulations
When everything is all set, you now have to ensure that the potential tenants are okay with your set of rules and regulations.
Let them fully understand and discuss your terms and conditions. In this way, you would observe what kind of personality and traits they have based on how they will react to your standards.
Once both parties agree, you and the potential tenant must sign a lease agreement where all required information is written.
Trust Your Inner Self and Past Experiences
As a landlord, your best pal in deciding whether or not you accept that client as a tenant is yourself. You are the one who can identify what kind of tenants are best for your properties based on your criteria, what you learned about them, and the agreements you’ve made with them.
With the help of the experiences you encountered before, you can be more confident in determining the tenants’ qualifications. As a result, it will make you linear in choosing great tenants frequently, less hassle, and avoid unnecessary stress as a Landlord in the future.
That’s it! These are the things that you have to keep in mind when looking for great tenants. These ways will definitely let you manage great tenants worthy of your valuable money-spinner properties!
Of course, your rental property is your livelihood, so you should be thorough in choosing your property manager. Read our other blog post for tips in finding the best property management company.