What is the number one thing that makes being a property owner a satisfying and rewarding job? If you were to ask any room full of property owners that question they would all give you the same answer: high-quality tenants.

Filling your rental properties with high-quality tenants—tenants who pay on time, are quiet, don’t ask for unnecessary repairs, and take care of the property—is the single best way to make good on your real estate investment. In fact, for your investment and business to be truly profitable you need to have high-quality tenants. 

Having high-quality tenants doesn’t just happen by accident, though. YOU have to do the work to attract them. That attraction starts with marketing.  Think about the kind of person your ideal renter is and try to write ad copy that will be appealing to them.  Also, remember to use descriptive, action-oriented language to get those renters moving.  For example, “For Rent: 2 Bed/1 Bath available” won’t do near as much for you as, “Luxurious 2 Bed/1 Bath apartment available in May. To schedule a showing call 555-5555.”

Then, no matter how good they look when they walk in the door, you absolutely MUST screen your tenants. There are three steps to a thorough screening process:

1)    Application. Have a comprehensive application ready for them to fill out. If you can, mail it to them ahead of time so you can look it over while they check out the property. This application should solicit information regarding previous living situations, who will be living in the space, criminal history, job history, and references.

2)    Call their references and do a credit and criminal background check.  Follow up with the references your prospective tenant gave you and run a credit check. Those two things will give you invaluable information on the character of your prospective renter.

3)    Fill out a contract and get a deposit. Making people fill out and sign a contract not only gives you legal recourse in case of trouble, but it also sends a strong message that you mean what you say and you expect them to hold up their end of the bargain. Likewise, getting a deposit will help your prospective tenants respect you and your property and will be a good indicator as to how stable they will be.

How do you screen your tenants? What do you do to make sure they are the right people for your property?

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