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Wednesday, 17 April 2013

The Way to Find Model Tenants

By Carrie Serienz


For landlords, finding the right tenant and protecting your security are critical. Unlike property developers or management companies, you don't have the luxury of legal teams, superintendents and extensive financial resources to deal with challenging tenant issues. Finding the ideal tenant takes some time and effort, but it is worth going over these steps to ensure the safety of your property and investments.

DIY or with an Agent

A part of renting properties is thinking about how much work being a landlord will be for you, and deciding what you can handle in this area. Agents provide many types of services to landlords, including maintenance, showing suites and taking care of rentals and paying of rent, it's wise to look into what they can offer. Naturally there is a charge and the more involved an agent is the more they will cost.

Finding the right tenant can be very stressful, because so many factors go into play: the market, the economy, are they a good "fit" for you (they'll be living in the same building), do they make enough money, are they trustworthy, will they be quiet and clean, etc etc. While keeping this in mind, landlords want to fill a vacancy fast because of the monetary concern of lost rent.

It's not impossible to go it alone and there is nothing with regards to renting a property that a landlord can't do by themselves. There is a lot of physical work required, and as a landlord, you must consider how much of this you want to really do. Emergencies happen at all hours of the night, will you be able to handle them when they arise?

Checking References

References are amongst the most useful tools available to you in the hunt for reliable tenants. Different references are required for different types of properties. But residential landlords would be wise to request at least a verifiable reference from the prospective tenant's previous landlord. These references are sometimes unreliable, so be sure to investigate further, a simple phone call is necessary. A reference from an employer is also a good indicator of the person's financial situation, although this does not mean the rent will be paid for sure.

Credit checks are a Good Idea

Checking a tenants financial situation by doing a credit check is another way to gain information. Doing so will show you if they have had unpaid debts or loans in the past. A bad credit history doesn't mean that the tenant will not pay the rent though, and a great credit rating does not guarantee that they will always pay on time.

Get a Deposit

It seems like an obvious thing, but shockingly, there are a great deal of landlords who rent without having a security deposit obtained. This is one of the most important ways in which you can protect yourself and your property, and you should not hand over the keys to your property until you receive it.

A landlord should protect their property by requiring the tenant to sign a well written tenancy agreement, to help deal with unseen circumstances. Protection is key, and a tenancy agreement will ensure that this is a high priority for tenants, and landlords.




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