If you’ve bought property with the idea of renting it out, you may be looking into the best practices for renting. Becoming a landlord could be a lucrative choice for you, but it could also bring plenty of headaches with it. If you’re concerned about what to avoid when renting out a property, here are a few things to consider:
Poor credit should catch your attention
When it comes to renting out property, you want one thing to not remain a mystery: your potential tenant’s ability to pay their rent. You are probably hoping to use that money for something. The uncertainty of not knowing if you can depend on it because of your tenant’s poor money habits isn’t a problem that you want to get yourself into. Checking a potential tenant’s credit will give you an idea of whether they’re worth renting out to or if maybe you should consider someone else.
Reports of serious damage should be taken seriously
When considering a potential tenant, you hear of some damage to their previous property. You’ll want to sit up and take notice. This is a huge red flag for anyone who is hoping to be able to rent out their property for many years to come.
Minor things like a little bit of scratched paint or nail holes in the wall are easy repairs and pretty much part and parcel of renting out a home. Bigger things like huge holes in the wall, stained and ruined floors, or pet feces and pee all over the home that have soaked into carpets and more—well, you don’t need a bigger red flag than this.
First-hand accounts of tenant experience
A good way to find out whether a tenant could be a good one is to call their previous place of dwelling. For the most part, you’ll get an honest account of what to expect from said tenant. While some property managers may like that person for whatever reason, they’re a mess of a tenant. The reality is that you’ll be likely to get the truth from landlords and property managers when it comes to checking in about a tenant. It may be an uncomfortable call or take time out of your busy schedule, but it’s worth it!
Background checks aren’t a bad idea
Running a tenant background check could save you time and money, so while it may not be your favorite thing to do, it’s something that will protect you and other tenants. You want to be sure that the person or people moving into your property aren’t people with a history of criminal behavior or other misconduct that wouldn’t be appealing to have in a tenant.
If they’ve been evicted, find out why
Evictions are typically the result of some serious neglect or poor money management that can result in someone needing to be removed from their home. In some cases, there could be other reasons for evictions. Most of the time, none of them are good. While you’ll want to find out why a tenant was evicted, as they could very well be more than financially sound to cover their rent, it’s a good idea to pay attention to any history of eviction.
It’s just not a fun process to go through as a landlord, so you’ll want to do your best to protect yourself from needing to go that route. The best way to do this is to avoid allowing the situation to happen in the first place.
We protect ourselves as employers, employees, in dating, and so much more. As a landlord, you have to protect yourself as well. As much as we’d wish for everyone to be the perfect tenant, this just isn’t the reality. Watch for these red flags, and if you’d like to save yourself time, consider hiring a property manager.
Featured image credit: Freepik