Investors are often reluctant to engage in rental property acquisitions because of the potential to host a bad tenant. They have heard stories of tenants destroying properties, not paying the rent on time and causing unbelievable amounts of stress. It is not hard to understand why some investors may look elsewhere. However, alternative investments may not be the answer. The easiest solution may include finding a good, reliable tenant. If you find better tenants and do everything possible to retain them, you will see that being a landlord is not as difficult as originally anticipated. The value of a good tenant is not to be underestimated.
The first step to finding a good tenant involves reviewing applications thoroughly and screening all applicants. Most of the information you need will present itself accordingly if you are willing to take the time and read it. If your tenant has had issues with the previous six landlords, problems are likely the result of the renter. Treat the application process seriously. If there are doubts as to whether or not they can pay or anything else raises a red flag, walk away and find someone else. If not, you are opening the door for months of trouble.
Too many landlords start their tenant search late and are forced to take on a renter out of necessity instead of wanting to. Once your feet are in the fire, it can be difficult to walk away and risk the prospect of a vacant property. Start your tenant search as early as possible, as to allow yourself the proper time to practice due diligence. Making decisions purely based on keeping the property occupied will catch up with you sooner or later.
Once you have found a good tenant, do everything you can to retain them. You may be looking at a tax increase or that you can squeeze more money out of them, but is it really worth it? If you don’t have to worry about getting your rent check every month and feel confident that your house will look the same as when their lease started, your current tenant is worth more than you think. You may not make as much of a profit every month, but you will have piece of mind, which is far more important. If you have ever gone through an eviction process or had a tenant stop paying, you will know just how important keeping hold of a good tenant is.
The strength of a good tenant is based largely on the individual investor and their screening process. You are the one that should put the time in to review the application and discuss any red flags. You are the one that should start the search process weeks and months before the current lease ends. You are the one that should take care of your tenants so they want to stay and take care of the property. In most cases, a good landlord equals a good tenant. A good tenant can make your life a whole lot easier. Your goal as a landlord should be to do everything you can to find good tenants. Once you have them, do whatever you can to make sure they stay as long as possible.