There are many unfavourable aspects of human nature, with a tendency to generalise and label large social groups on the actions of a small minority. Take residential tenants, however, who as a group are often considered in less than favourable terms despite the fact that the majority are respectful citizens who pay their rent on time every single month. It is therefore important as a landlord to afford your tenants’ respect and treat them on their own individual merit, especially if you want to build relationships and generate regular income.
3 Things to Look for in a Residential Tenants
With that being said, it is still important for residential landlords to thoroughly appraise their potential tenants and ensure they are suitable candidates. Consider the following things to bear in mind when evaluating tenants: –
- Credit History and References
Beyond each individual tenants’ personal attributes, they will also have long-standing credit histories and references from previous landlords. While these cannot tell the entire story, they provide statistical insight into their outlook as individuals and their capacity for paying rent on time and maintaining clean living spaces. You should careful consideration to this data prior to choosing a tenant, as this will help you to develop an informed impression of each candidate as an individual.
- The Benefit of Hiring an Independent Property Management Firm
When appraising potential tenants, it is an excellent idea to employ an independent external company to assist you with the process. This gives you a fresh pair of eyes and enables you to outsource the handling of potential tenant applications and the organisation of viewings. This can be especially crucial for novice property developers or those who are new to the market, as reputable firms are more familiar with the tenant application process and able to execute more informed decisions. Just as companies such as Morgan Randall can help to find tenants and properties, so too other companies can help you to appraise tenant applications.
- Meet Tenants in Person and Trust Your Judgement
While tenant application forms are an invaluable source of data, they cannot reveal everything about an individual. This is where you need to meet tenants in person where possible and trust your judgement when communicating with them. After all, many individuals have suffered from financial hardship in the wake of the Great Recession, and it would be a shame to deny hard working citizens the opportunity to let a property due to a blemish on their credit file. This is where you need to strike the balance between showcasing interpersonal skills and making hardnosed commercial decisions, so that you can maintain profit while also building a positive reputation.