Owning a property is an achievement that most of us dream of. But again, having a rental property without tenants is a slap in the face for your real estate business. An empty rental implies lost income and the only way to resolve it is by getting qualified tenants. Not all tenants are good and no landlord would want to receive those late night calls regarding criminal tenants or cases related to late rent payments. Cases such as costly evictions, property destruction and tenants from hell are very rampant.
Learning how to rent out your property is a skill worth learning not only in getting a maximum return but in eliminating potential headaches. In case you don’t want to fall a victim of these, then below are tips on how to attract good tenants and get the highest rent out of your property.
Evaluate their past tenancy
You can tell whether a tenant is problematic or not by talking to their previous landlords. Consider aspects such as timely payment of rent, reasons why they moved, ability to give prior notice before moving, damage to property and other complains. In case it is a first-time tenant like a student, you can find a cosigner to help.
Additionally, you may also consider doing a background criminal check. A criminal check can enable you understand whether a tenant has been involved in past crimes. Some tenants may provide false information and is essential that you seek accurate data about them. Use their valid information including their names, date of birth and ID numbers. Letting your property to a criminal, drug dealer or thief can jeopardize the lives of other tenants.
Consider tenant stability
Employment status and their previous addresses can tell whether a tenant is stable or not. Tenants who are always on the move may not be reliable and as a landlord, you might soon be left with a vacant property again. Employment status and consistency are critical and can save you from the stress of searching for tenants time after time.
Check for creditworthiness
Financial stability matters a lot. A tenant who is responsible when it comes to paying bills has higher chances of not defaulting on rent payment and is worth approving. The process of determining the creditworthiness of a nonrated tenant requires thorough studies of their rental history, attitude, assessment of the industry, and financial status among other factors. A review of financial records such as balance sheets, tax returns, and income statements can give you insights into the creditworthiness of a potential tenant.
Prepare your property well
Regardless of how good you might be in screening tenants, you might miss a lot if you don’t market your property the right way. There are several things you can do to enable your property to fetch the highest possible rent. One such way is attending to your property to make it very attractive. Whether it is an already occupied or a new property, proper inspection and cleaning are vital. Professionals such as Royal Cleaning can help you when it comes to cleaning and staging property for rent. The company offers services such as upholstery, end of tenancy, carpet, mattress, oven and after-builders cleaning and many more. With proper cleaning, you can get your property in top condition ready to attract good potential tenants. Timely cleaning and maintenance are also essential so as to avoid postponing tenants’ move-in dates.
Capacity of occupants
Having too many occupants in a room can increase the rate of wear and tear. The size of your property should dictate the number of occupants to move in. Having two occupants in the bedroom is quite reasonable. Additionally, a housing unit that is equipped with both a den and a living room can accommodate more occupants than a small one. Similarly, a 600 square foot room can hold a higher number of occupants than a 300 square foot unit.
Other factors to check when considering the number of occupants is the number and age of children, limitations on the existing sewer unit and state/local laws.
Decide on how much to rent the property
Rental prices can be hard to pinpoint but should be based on the existing market prices. The market sets the rental prices for most properties and not just a word of mouth. Try to charge fair market rent by doing some research. Find out what others charge for rent then ask about a similar amount. However, factors such as size, location and the condition of your property should play important roles.
Getting the highest rent out of a rental property requires more than just quoting a high price. It involves considering factors such as screening the best tenants through checking their creditworthiness, payment histories, financial status and number of occupants and many more. Staging your property properly through proper cleaning and maintenance is also paramount.