Approving new tenants is a tedious and nerve-racking process for landlords. Some might consider owning and managing rental property to be easy money but welcoming in the wrong tenants certainly does not make that the case. We’ve narrowed down 5 key considerations landlords like you should keep in mind before renting out their property to new tenants.
1. Define Your Rules
Considering that every landlord has their own set of rules and needs for the care and treatment of their rental properties, ensuring that tenants abide by these demands is a necessary step in the approval process. Before reviewing any new applicants, be sure to have clearly defined a list of tenant requirements, so that you can rest assured knowing that any of your potential rental property concerns are addressed effectively. You may also want to consider the requirements that fall under state law. Reinstating these legalities for both yourself and the tenant on paper will make it easier for both of you to understand what is expected.
2. Disclose Issues Honestly
As a landlord, you want to be upfront with potential tenants about any issues related to your property. Backing out of a lease because of undiscussed issues wastes time and energy for everyone involved. Even the cleanest and most upscale apartments in Los Angeles are not immune to a roach infestation. Why? Because Los Angeles is a major city and major cities have lots of bugs. You don’t want your tenant thinking your place is a dump, so be sure to go over any misconceptions. For any issues, you are unable to resolve, attempt to compensate with additional perks such as new windows, washer/dryer access, and modern appliances. Any way that you can modernize your property will act as major selling points to potential tenants.
3. Complete the Basics
Once you’ve pooled in a list of potential renters, be sure to run a proper landlord background check, including credit and rental history checks on everyone. You wouldn’t invite a stranger into your home, so don’t allow just anyone to rent from you either. It’s important that you consider applicants with a financial history to support the cost of the rent. No one wants to deal with lawsuits or squatters. It’s your job to make sure only those who can afford to live at your property end up there. Tenants like to know that their landlords appreciate them just as much as they appreciate their apartments. If you happen to be blessed with the kinds of tenants you hope never leave, here are some property management suggestions to make them want to stay!
4. Appeal to Interests
Although you should be upfront about issues, make sure you still intrigue your potential tenants with all of the benefits of living at your property. Research shows that renter and homeowner profiles are flip-flopping. As more and more young people are purchasing their first homes, older adults are renting. Be mindful of new tenant needs and consider selling to these points if possible. For example, every senior knows the benefits of exercise. Does your property have access to a workout facility, nearby track, or gym? These are the kinds of things you want to mention. Are renters looking for short-term options? Perhaps your property could double as temporary corporate housing for digital nomads or those away on business.
5. Share Contact Info
Before your tenant moves in, make sure they are aware of where to submit rent as well as how to contact you should any issues arise. It’s important that you share your contact information with your tenant because maintenance issues can become major burdens if not handled quickly. For example, if a pipe bursts, how is your tenant expected to handle the situation without being able to get in touch with you?
Approving new tenants comes down to the give and take between renter and landlord. The biggest questions to ask are: What can a tenant do for you? What can you do for them? How can you both make the renting process a win-win?