Choosing the ideal tenant is one of the hardest decisions in rental property management, but also one of the most important. The right tenant will provide a positive business relationship, stable revenue, and the sustained value of your rental property. So, how do you find the right people for your property? Read our helpful insights from the property management experts here at Lochore’s to better navigate the tenancy selection process.
Checking a tenant’s background
As part of your tenancy screening process, you can ask that applicants fill out a pre-tenancy application form. A pre-tenancy application will give you two valuable pieces of information:
- Permission to conduct a credit check
Character references will provide a helpful glimpse into the type of relationship you can expect to have with a tenant. With permission to conduct a credit check, you can safely access the applicant’s occupation, employer, and debt situation, including bankruptcies, collection actions, court judgements, defaults, and other information regarding public notices. You can also access recent addresses to learn about their tenancy history.
What to ask in your interview
Records and references can teach you a lot about a potential tenant, but sometimes the best way to assess their fitness for renting is to speak to them in person. You can interview tenants as early as the pre-tenancy application; you may even choose to fill it out together as part of the interview. An interview is a great way to establish expectations and answer questions and helps start a business relationship on the basis of mutual understanding. During your interview, take the time to ask about the following:
- Will the rental property suit you in its current state?
- Do you have any pets?
- How many people will be living with you in the property?
- Do you have any accessibility requirements?
- Would you prefer a fixed-term or periodic tenancy lease?
- Are there any reasons you may struggle to pay rent?
- Have you ever been involved in a formal tenancy dispute?
- Why have you moved from your recent rental properties?
- Do you understand what will be expected of you as a tenant of this property?The reality is that unfortunate responses to any of these questions don’t necessarily have to be deal-breakers. Your interview is an opportunity to communicate and pursue solutions. If adequate solutions can’t be developed or agreed upon, perhaps this tenant will not be the best fit for your rental property.
Know the rules
Establishing the expectations and responsibilities of the tenant is only half the tenancy selection process. You must also understand your responsibilities as a landlord or property manager. Tenants are protected during the selection process by several laws and regulations. Certain factors cannot factor into your decision to deny a tenant a lease. These include:
- Disability or health condition
- Employment status
- Marital Status
- Nationality, ethnicity, or race
- Political affiliations
- Religious beliefs
- Sexual orientation
The help you need for tenancy selection
Experience can make all the difference during tenancy selection. If you want the perfect tenants for your rental property, why not consult with the best property management North Shore wide? Lochore’s Real Estate offers leading professional tenancy services to help you get the most from your property. Contact Lochore’s today to start your journey with us!