Ideal renters are crucial for property owners and managers investment success- they can make a significant difference in your rental property experience, ensuring steady income and minimizing potential headaches.
Let’s explore effective tenant screening techniques to protect your investment property.
The Challenge of Identifying Problematic Tenants
Problematic tenants rarely disclose their true nature on applications. They won’t admit to being “party animals” or habitual late-payers. Nor will they provide references from landlords whose properties they’ve damaged.
So, how can property owners avoid these troublesome renters?
Beyond Red Flags: Our Approach to Tenant Screening
At our property management company, we pride ourselves on our low eviction rate (less than 1%). This success stems from our comprehensive screening process. We look beyond obvious warning signs to highlight the best applicants.
For example, a low credit score doesn’t tell the whole story. Recently divorced applicants might have temporarily poor financials but could be ideal renters in terms of salary potential, references, and suitability for your unit.
The Importance of Thorough Screening
While credit scores and employment history are crucial, they’re just the tip of the iceberg when assessing an applicant’s suitability. A good tenant is fundamental to a profitable, low-hassle property investment. The hidden costs of managing problem renters can quickly erode both profits and patience.
To learn more about tenant rights and responsibilities, visit the Ontario government’s renting guide.
The Impact of Quality Tenants on Investment Success
In our over 20 years of experience, we’ve found that finding the right person contributes as much to investor success as choosing the right property. It’s worth investing time and effort in tenant screening to protect your investment.
Key Elements of Effective Tenant Screening
- Verify employment and income
- Check credit history (but don’t rely on it exclusively)
- Contact previous landlords
- Conduct personal interviews
- Trust your instincts
Professional Screening Services
If you’re feeling overwhelmed by the screening process, consider working with a professional property management company. We have the expertise and resources to find high-quality renters for your investment property.
Contact our team to learn how we can help you avoid the “tenant from hell” and maximize your property’s potential.
