In real estate investment, there are many ways by which you may earn. And perhaps letting your place be available for rent or lease is the most convenient and easiest way of earning. However, one crucial factor that you should consider before diving into such enterprise would be the ability to choose the right tenants.
Earnings from rental houses or commercial buildings are obviously hinged from the tenant's capacity to pay. This is why it is important to identify tenants who would be good payers and not a headache for your business. Below are just some ways how you can choose tenants who would be right for your business.
Hands-On
You should be handling directly the checking of the possible tenant, and let not any third party influence much of your decision. You should meet face to face with the possible tenant, and let not the transaction be solely made via Internet or other forms of communication. By doing this, you can actually have a glimpse of an individual's personality and verify the facts stated on the papers he/she would be submitting.
Check Things
Of course, you are not a mind reader or a profiler that can read peoples' mind and their intention, even their history. These things are important in the foundation for your judgment. You may also run some background checks, including credit and criminal records, in order to judge whether the person has the capacity to pay the rent and would not cause any trouble in the neighborhood.
Ask Around
Aside from depending too much on documents and other submissions, you should ask around. Try to start from the person who referred the prospect client to you. Afterwards, if the area is near, you may also ask their previous landlord. If it is not possible for you to meet them in person, you can simply dial their number and ask about your future tenant's history.
After meeting the person, reading some relevant reports and documents, and hearing their previous rental history, you may now start weighing things. Always remember to look at things from an objective point of view and not be clouded by your emotions when dealing with a prospective client. There might be some imperfections, but try to be considerate as well.
