The person you put in your property will decide the success or failure of your rental. A bad tenant can possibly lead to years of stress, headaches, and financial loss. While a great tenant could provide years of security, peace, and affluence.
It’s not likely to know for certain 100 percent what kind of tenant an applicant will be, here are six signs and traits that will give you a good idea if a person is great tenant material or not.
The primary quality of a good tenant is their level of financial responsibility and capacity to afford the rent. Without payment a landlord may have to evict the tenant and possibly face thousands of dollars in legal fees, lost rent and damages.
Although your tenant may be the nicest person in the world, it doesn’t matter if they aren’t paying their rent. As a landlord and real estate investor you can’t let your personal feelings for a person get in the way of your cash flow.
Tenants that are willing to pay and pay on time are highly valuable.
You always want a tenant that can provide proof of employment, but that doesn’t necessarily mean that it is a steady job.
If this person changes jobs often or has long periods of unemployment, these may be red flags that will put your chances of being paid on time at risk.
A tenant who has good job prospects and a steady, reliable income is the tenant you want.
Prior to a tenant moving in their cleanliness can be observed by their appearance. If they take care of themselves they are more than likely going to take care of their home too.
A tenant with no respect for the law will have no respect for your property. Those who partake in illegal activities will cause you nothing but stress and expense. Make sure you run a background check on all prospective tenants.
Your tenant may pay their rent on time and be clean, but they may also drive you or your property manager nuts. A tenant who causes stress and headaches even with their good habits may not be worth keeping around.
A tenant that is late on rent every now and then, but doesn’t cause any problems could potentially be a better tenant for your investment rental property in the long run.