A good tenant is a cornerstone of a profitable and low-hassle investment.
acancies, rent collection, and disputes are concerns that are affected by tenant quality. The security of your investment is, in effect, subject to the activity and personality of a complete stranger.
The benefits of a good tenant are difficult to quantify but become apparent in the medium- and long-term:
- Length of tenancy: Better quality tenants generally remain longer in the property, lowering turnover-related expenses such as leasing fees, cleaning, repairs, and gaps between tenancies
- Reliability of rental Income: Better quality tenants generally have better jobs which they are less likely to be fired from and such tenants generally have savings to lean on should the need arise.
- Wear and tear: Better quality tenants are generally more respectful of the property and so less likely to cause damage and more likely to pay for the repair of damage they accidentally cause.
- Quiet enjoyment: Better quality tenants usually have less of an impact on other tenants, making less noise and being more cordial in the interactions.
Finding a tenant is easy. The hard part is screening out the bad ones.
It’s easy enough to post a listing on a public forum such as Craigslist, Kijiji, or various social media platforms. Such a listing can’t help but produce interested applicants. A cursory review of applications will weed out the obvious, such as a spotty employment or rental record. Having screened thousands of applications over the years, we know that when it comes to the remaining applications, the hard part is separating fact from fiction.
Given the importance of a finding not just a good tenant, but the best available one, we regard the screening process as the foundation of all other property management activities.
Click here to learn about other factors to consider when finding a tenant.