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Easy Recipe For Real Estate Investors to Find Great Tenants! |
Real estate investing is in your blood. You love the challenge of finding a great property and fixing it up. But you want to make sure that all of your hard work doesn't go to waste by putting a tenant in your property that will ruin all of your hard work in less than a week. Not only did you spend a lot of time fixing your property up, but you more than likely spent quite a bit of money to get it to where it is today. So, how do you find good tenants? Well, you're about to learn.
To get good tenants you have to treat your real estate investing like a business. You must first set up minimum guidelines for renting to individuals. For example, you may not want to rent to anyone having a felony in the last 3 years--make this a minimum requirement. Or you may not want to rent to someone with a judgement on their credit report from a past landlord. Again, make this a minimum guideline. Understand there are certain things you cannot make as guidelines like race, religion, age, etc. Check with your attorney to help you establish your guidelines. Do this first and it will make your life a lot easier.
Let us just start by saying, you have to get to know your prospective tenants. You do this by having them fill out a detailed rental application. In this application you ask them to supply you with work references, personal references (although, chances are they are not going to put anyone down who is going to speak badly of them), family names and phone numbers, past rental history with past landlord contact information, the type of vehicle they drive along with license plate and driver's license numbers, their birthdate and their social security number. This should be enough to get you going. Make sure you are also charging them for the privledge of filling out your rental application. Why would you charge them, you ask? Because if you are wanting to ensure great tenants then you will definately want to run criminal and credit checks on each prospective tenant (that means anyone over 18 living in the property). In addition, your time is worth something and again, if you are going to be checking references and running the credit and the criminal checks it is going to take up some of your time. One other thing, if they cannot seem to come up with the application fee, you should run the other way! You also want them to have an investment in the process. Just remember, the guidlines you set up in your application process must apply to everyone who puts in a rental application with you.
Now that you have your minimum guidelines established, you've set a price for the application fee, found out where you are going to run your credit and criminal checks (there are many places online that are accurate, quick, and inexpensive), and you have developed a good rental application, now it is time to rent your property. Once you have found a qualified tenant, conduct your due diligence and don't cut corners! Once you are satisfied and the prospective tenant has met your minimum guidelines, then offer them the property. Make sure that they have the first month's rent and the security deposit. If they are having trouble with coming up with those you might want to reconsider renting to them. If they don't have the security deposit, chances are next month they won't have the rent.
Following these suggestions should ensure that you are only placing quality tenants in your properties. It will undoubtedly save you endless hours with evictions, repairs and ultimately lost revenue.
About AuthorThe Millionaire Real Estate Pros are Matthew Bodeman and Scott A. Rozanski. These two seasoned investors are committed to helping others discover how to make big money investing in real estate without all the hype and without all of the gaps found in traditional real estate systems. For more information, please visit The Millionaire Real Estate Pros at www.millionairerealestatepros.com
Source: ArticleTrader.com
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