Building a profitable real estate investment portfolio is reliant on several things. It is important to understand the inner workings of business and interpersonal relationships when renting out your spaces, whether they are residential or commercial. Working with a quality property management firm can help with that. The most important is finding tenants that are compatible with you and your property.
Finding good tenants can be the single most challenging thing that a property owner will do. However, when you find the right tenant, your job as a real estate investor becomes way easier. Read more to learn about how to distinguish good tenants, as well as how to properly draw them in and retain them.
What Is a Good Tenant?
Good tenants can be hard to come by, but are well worth the investment up front. Good tenants typically don’t cause any trouble, pay their rent on time, and stay around for a while. Furthermore, you should consider these things when screening a prospective tenant:
1. No Criminal Record
Protecting your property, as well as the neighborhood, is a big responsibility as a landlord. While you can rely on your gut instincts, it is important to understand a prospective tenant’s criminal history.
Nearly 1 in 5 rental applicants have had at least one hit on their criminal record. While this alone does not mean that they are a bad person, there are a few indications that their criminal conduct could cause you issues in the future, including:
- Nature of the crime
- The severity of the crime
- Rehabilitative efforts
With those things in mind, you may be able to piece together exactly what led to their conviction. To find these things out, you can run an online background check. Just make sure to follow HUD guidelines.
2. Clean Eviction Record
Evictions can be very expensive. Not only do you lose money on legal fees, but also the vacancy of a property. Past evictions are a great way to predict future risk when screening a potential tenant. Strong tenants pay their rent on time and follow their leases, ensuring that they do not have to deal with evictions.
3. Good Credit History and Can Afford Rent
Payment problems are the top concern among landlords in our modern times. Nonpayment can cause plenty of issues for property managers beyond just cash flow. Tracking down late payments alone can be costly and requires precious time and energy that landlords don’t have.
Strong prospective tenants will have a decent credit score, meaning that they pay their debts on time and have minimized late or missing payments. If your tenant has a great deal of debt, they may have a hard time covering the cost of rent.
4. Good Character Makes a Strong Tenant
While the above items can quantify a good tenant, the character of a person is just as important. Working with a quality tenant can make things easy; however, you have to go out and find them. Drawing in a good tenant takes quality marketing and professionalism, but it can be done.
Attracting the Best Tenants With Good Marketing
Now that you have an idea of who you believe is a strong tenant, it is time to start marketing to your ideal customer. One of the most effective ways to market your property is by building a quality listing. To do this, you will need a well-written listing with detailed, high-quality photos.
Depending on who you are marketing to, you will need to cater your messaging to them. You will not want to use stuffy language and boring photos if you are trying to attract young hipsters. Work around your ideal client as well as the local demographic to make an impression.
Since we are on the subject of marketing your listing, photos should be one of the top priorities when making a listing. In some cases, photography of the space will rent the property itself. Make sure that you utilize clean, well-lit photography and show details that get people excited. Also, the more photos, the better. Bonus points if the space is professionally staged.
Strong Clients Want Professional Landlords
When it comes to acquiring great clients, professionalism goes a long way. You may quickly build your list of prospective clients by demonstrating your commitment to being a decent, professional landlord. A few examples of going the additional mile with a professional touch are:
- Preparedness – Having papers on hand, such as application and lease documents, demonstrates that you are concerned. Being able to respond to crucial questions and concerns demonstrates a professional demeanor.
- Fact Sheets – Create high-quality, well-organized fact sheets that include all pertinent leasing information. Describe any pertinent information, such as the lease start date, move-in and move-out costs and dates, building restrictions, and a comprehensive description of what is included.
- Be a Tour Guide – Knowledge of the local community, amenities, and schools is a terrific approach to attracting potential renters. You can add the “cherry on top” of your lovely property by emphasizing all of the fascinating things going on in the neighborhood.
Work With a Property Management Company
In line with professionalism, working with a property management company can help draw strong tenants. In addition to marketing your property, screening your tenants, and running the day-to-day business of your real estate investments, property management companies are a great indicator of a well run rental property.
Modern Mountain Real Estate – Rental Property Management Company in Asheville
If you need help finding the right tenants for your rental properties in the Asheville area, contact Modern Mountain Real Estate. We understand how important it is to choose a trustworthy rental property management company to manage your investment. Our property management staff is committed to providing a trustworthy one-stop shop that will protect the profitability and security of your investment.
Our knowledgeable staff is here to assist you with short-term and long-term leasing procedures. Contact our property management staff today to learn more!