Finding good tenants is definitely crucial when you are managing rental properties. In an article she wrote for AppFolio, Rachel Jefferson describes that "as a property manager, you don't want a 'bad' renter." A bad renter is someone who is late on payments, someone who tears up the floorboards, or someone who has bad credit. Jefferson went on to descrribe that this type of renter can lead to increased turnover, costly maintenance repairs, and eviction headaches. She recommends the following pointers by which you can identify high quality renters:
1. Differentiate a "good" from a "bad "renter
You should conduct a thorough credit and background check of the prospective renter, contact past employers, references and landlords, and then thoroughly assess the results. You may also use the following as your guide questions:
a. Was there an issue with past landlords regarding his or her rental payments?
b. Has he or she been in trouble with the law?
c. Does he or she have a tardiness history at work?
d. Does he or she have a history or is exhibiting signs of being irresponsible?
e. Why did he or she leave his or her prior residence?
As the manager, you are duty bound to thoroughly screen your renters for the benefit of your other tenants and for the sake of your business, too.
2. Trust your instinct
Your gut feeling is usually correct and reliable. Observe the applicant well and create your first impression during the interview. A renter who lacks respect for his or her property manager would, most likely, have trouble respecting your property, too. Ask the applicant many questions in your first meeting and compare the applicants' answers with the ones you gathered during your background and reference check. If you find the applicant dishonest or inconsistent, then you might be up for a big risk.
3. Use technology
As the whole process of screening an applicant may be time consuming, you may consider getting an online tenant screening service. It can offer you the convenience of just clicking a "screen now" button for your renter, and then have the result generated into a report. The property management software with a built-in screening can help you ease your burden, especially when information is difficult and when resources are scarce.
