Do you seem to have bad luck when it comes to tenants? Knowing how to find good tenants is key for maximizing returns on your investment and for peace of mind, yet landlords often make the same tenant search mistakes.
These landlord mistakes result in the wrong tenants filling vacancies. This can lead to high turnover, late rent payments, and behavioral issues just as a few examples. With this in mind, here are the main tenant search mistakes to avoid so that you can improve your tenant search process.
Failing to Screen Tenants Properly
One of the biggest tenant search mistakes that landlords make is not screening tenants properly. Tenant screening is an essential process for making sure that you are accepting people that will be able to pay on time, look after the property and not cause any issues.
A robust tenant screening process should involve a criminal record check, employment check, previous landlord check, and character references. You do not want to take any risks when it comes to tenants, so a robust screening process is key for filtering results and finding people that you can trust.
If you want to know how to find good tenants, you should use a tenant screening platform. This will make it quick and easy to screen potential tenants to find people that will be a good fit.
Not Speaking With Previous Landlords
Leading on from this, in addition to checking with previous landlords for verification, you should also have a phone conversation with them. This is important because it will give you an idea of what to expect from the tenant. it will also allow you to ask if there are any potential issues you should be aware of and get answers to any questions that you have.
Speaking with previous landlords is one of the best tenant search tips. This is because you are able to speak to those in the same position as you to see whether or not the tenant will be right for you.
No Flexibility With Pets
Many landlords will ban pets from their rental property, which is understandable. It is worth considering, though, because it can give your rental property the edge and allow you access to a much larger tenant pool.
Few landlords allow pets, which means that it can make it much easier to fill a vacancy when you allow pets. Additionally, many landlords find that pet owners are more responsible and will take measures to protect the property.
If you decide to allow pets, you need to consider the drawbacks and find ways to mitigate these. This might include meeting with the tenant and the pet before entering an agreement and outlining that damage will be covered by the tenant in the tenancy agreement.
Not Meeting the Tenants First
One of the biggest landlord mistakes that people make is not meeting tenants before entering an agreement. Many landlords prefer to be hands-off, but tenant search is key for maximizing your returns and you want to find people that will stay put and look after your property.
This is why you should always meet with a tenant first. This will give you the chance to get a feel for them and whether or not they will be someone that you can trust. There are various questions that you should ask, such as:
- Why are you looking for a new rental?
- What made you choose this property?
- Are there any issues I should be aware of before conducting a background check?
- What is your profession?
- What is your monthly income?
- Have you ever been evicted?
When asking questions, keep in mind that there are some that you legally cannot ask. These are usually questions that could lead to discrimination, so you will want to avoid this at all costs. Generally, these will be questions related to age, race, sexuality, marital status, and religion.
Meeting with potential tenants during the tenant search process is also a way to build relationships. As a landlord, you will want to build a positive relationship with your tenants so that communication is easy and there is a level of trust that goes both ways.
Overpricing the Property
One of the most common tenant search mistakes is overpricing the rental property. Obviously, you want to earn as much money as possible, so it might seem like setting a high price is best. You certainly should price competitively, but you should avoid overpricing as this will limit your options and tenants may struggle to stay beyond a year.
Instead, you should set a reasonable price for your rental property. This will make tenant search much easier and you are more likely to find tenants that will stay beyond a year and reduce vacancy time.
With rental prices rising along with a rising cost of living, you need to be realistic and understand that many households are feeling the squeeze. Keeping your rental price at a reasonable level will improve your tenant search and ensure that your tenants are not struggling to keep up each month.
Avoid These Tenant Search Mistakes to Find the Best Tenants
These are a few of the main tenant search mistakes made by landlords. The tenant search process is key for maximizing returns on your investment, so you need to know how to filter results and find the best tenants for your rental property.
Check out our other real estate articles today to learn more about managing your investment.