Five tips for choosing the right tenant for your property
One of the things landlords agonise about the most is finding the right tenant, with the prospect of huge pitfalls including property damage and unpaid rant facing those who don’t. Although you can never be 100% sure your new tenant is the perfect choice, by doing your research you can minimise the chances of having a bad experience. Here, the global real estate network Lamudi share their top five tips for finding the right tenant.
Meet the applicants
If you are managing the property yourself,the rapport you have with the tenants will be crucial. If time permits, schedule face-to-face meetings with the applicants, or if you live out of town, set up a phone call instead.
Be thorough with documentation
Require certain documents from all applicants and be thorough in verifying them. A copy of the applicant's passport and driving licence should be provided, In addition, you should request proof of income in the form of a work contract and copies of recent payslips. As a affordability guideline, the rent should not cost more than about a third of the applicant's total monthly income. For extra security, you can also request references from previous landlords.
Check their credit history
A credit check will tell you whether an applicant has any outstanding debt or a history of fialing to paying his or her bills on time. Even if the applicant can afford the rent based on their current salary, they may have accumulated debt and these repayments will need to be factored into their budget.
Look out for warning signs
Look closely at the prospective tenant’s rental history. Have they moved around a lot, or do they tend to stay in a property for the long-term? Most landlords will be looking for a tenant who is stable and willing to stay for a longer period. A patchy rental history could be a sign that there has been issues between the applicant and his or her previous landlords.
Listen to your instincts
Even though everything seems to be in order, you may feel uncomfortable renting your property to a particular individual. Always listen to this gut feeling and trust your instincts before making a final decision.