Have you recently invested in commercial rental property? If so, then you've made one of the smartest business decisions you'll ever make.
That's because owning rental property is a gift that keeps on giving. This is the ideal way to generate passive income for decades, allowing you to continue making money after retirement.
The key to successfully managing your rental property is to choose the best tenants possible. Why? Because good tenants will pay their rent on time and respect your property.
This article takes a look at tips for conducting tenant checks so that you can feel confident about the people living in your houses or apartments. Keep reading to get the inside scoop.
Don't Get In a Hurry
The first tip for finding a tenant is to slow down and resist the impulse to get in a hurry. It might make you nervous to let a rental property sit unoccupied for any period of time, but this will be far less stressful than ending up with terrible tenants.
Try to be patient. Make a list of the qualities you're looking for in prospective tenants, and listen to your gut rather than watching the clock.
Don't Be Afraid to Ask Personal Questions
Interviewing a protective tenant can be an uncomfortable experience. This is especially true when it comes to asking personal questions such as inquiries about their finances, job history, or marital status.
And yet the answers to these questions will provide a wealth of information about the quality of the people that might end up living in your rental property.
Don't Judge a Book By Its Cover
It's also important to not judge someone by their appearance. For example, just because they wear designer clothes or drive an expensive car doesn't mean they will pay rent on time or respect your rental property.
The key is to have a conversation and try them as a whole rather than based on specific superficial qualities.
Run a Credit Check
Don't forget to run a credit check. This is one of the most important aspects of finding a good lessee. Running renter background checks can save you a ton of time and frustration in the long run.
Request Personal References
It's also wise to request 2 or 3 personal references. This can provide insight into the type of people you're interviewing and help establish a clearer picture of their character.
Request Contact Information For Previous Landlords
Previous landlords might be your best source of insight into a prospective tenant. That's because it's important to find out whether an applicant has a history of paying rent on time and respecting the rental agreement.
A Landlord's Guide to Effective Tenant Checks for Your Rental Properties
It's no secret that owning rental properties is one of the most reliable ways to make passive income year and year. Fortunately, these tips for conducting effective tenant checks will help weed out the bad apples so that you sleep peacefully at night.
Please contact us today to learn about how we can help manage your rental properties more effectively.