The 8 Step Process For Finding The Perfect Tenant

The 8 Step Process For Finding The Perfect Tenant

• Posted by Luscombe & Co in blog, Tips & Advice
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There are good tenants, there are bad tenants and then there are nightmare tenants. Finding the right tenant is central to making your investment profitable. You have to identify a potential bad tenant before they move in. If you don’t, they can end up causing damage to your property, not pay the rent and even cause problems with the neighbours.

No screening method if foolproof, but there are a few things you can do to better your chances of finding a great tenant for your property.

1. Ask Questions

   1. Start with a simple phone call. You can often get a feel for the person by just chatting to them over the phone.

   2. You can ask questions like:

      1. Why they are moving?

      2. Why are they interested in the property?

      3. Why do they want to move to that area?

2. Meet Them

   1. Schedule to meet them at the property. A tenant who’s willing to move in without viewing the property should make you wary. They might be hiding something that could harm you in the future.

   2. You can also arrange to meet them at their current address, this will give you an indicating of the conditions they’re currently living in and how they will look after your property.

3. Get References

   1. Get references from previous landlords. This is one of the most obvious indicators as to whether you’re renting your property to a reliable tenant.

4. Check Bank Statements

   1. Can the tenant afford the rent? This might be an obvious thing, but go through their bank statements and make sure. Are they working full time or part time? Get three months bank statements to get an idea of their income and expenditures.

5. Credit Check

   1. Once again, crucial to ensure the success of the tenancy. There are many companies that can help you with this

6. Check their Employment History

   1. Have they worked at their current company long? If you’re letting a job hopper into your property, you might sit with a short term occupant.

7. The Deposit

   1. If the tenant doesn’t pay the deposit on the agreed date this should be a warning sign that they might not pay their rent on time either.

8. Trust your instincts

   1. After you’ve done all of the above, but you’re still not 100% sure of the tenant, trust your gut. There will be other tenants.

Finding the right tenant that looks after your property, stays long term and pays the rent on time is any landlord’s dream. So make sure you follow the steps above and ensure your investment is profitable.