One of the challenges of owning a rental property is finding suitable tenants. Fortunately, there are several ways to avoid renting your home out to undesirables. Here are five tips to keep bad tenants at bay.
- Ask the right questions
The process of choosing a tenant is akin to an employer conducting job interviews. These situations are unique in that usually you have a very short window of time to get to know someone before you enter into a shared agreement. So how can you tell if the prospective tenant is the right fit for your property? It all comes down to asking the right questions. Just like an employer would ask an applicant a series of probing questions, you should do the same. Check out this article for 10 important questions to ask before approving a tenancy application.
- Meet all prospective tenants in person
Anyone can ask other people help them fill out a written application. The only way to get a true sense of someone’s character is to meet them in person. Make sure you are present to show the tenant the property – don’t trust someone else to do this for you, such as a friend or family member. When you meet them, pay close attention to how they act. Did they turn up late? Are they polite? Who did they come with? We all want to see the best in people – that’s human nature – but when it comes to renting out your property, you need to pass a critical eye over prospects to ensure you make the right decision.
Read more: 10 questions to ask potential tenants before approving their application
- Check references
It’s important to check references – even if you really like the tenant, or they have been recommended by a friend. Speaking to their referees is a win-win situation; it will either give you peace of mind that you’re making the right decision, or it will help you avoid a tenancy disaster. Although it takes extra time, reference checking really is essential to long-term tenancy success.
- Consider hiring a property manager
Screening potential tenants takes time, experience and a good judge of character. For busy people, the hours can add up, and it may not be worth your time to manage all tenancy agreements yourself. This is where a property manager can be invaluable. Not only do they find great tenants, they also take care of any challenges or disputes as they arise – and keep you updated every step of the way. If something does go wrong, they’ll have the experience and support to deal with this efficiently and professionally, at minimal stress to you.
- Hope for the best, plan for the worst
Sometimes, despite our best intentions, we occasionally make the wrong decision, or a great tenant becomes a bad tenant over time. That’s why it’s important to ‘plan for the worst’. Make sure all agreements are signed and in writing, so that if the time comes to order an eviction, you have the paperwork to back you up.
Need to know how you can further proof yourself against having risky tenants in your investment property? Check out our FREE guide now:
