Renting out a property is a great way to reduce its overhead and even create an additional stream of revenue, however, if you can’t recognize a bad tenant, you are in for a whole world of trouble. Needless to say, you are not only at risk of the rent money getting late but of some serious damage to your property.
For all you know, they might be performing some illegal activities and compromising you in the eyes of the law, as well as dragging you into the criminal underworld. In order to avoid the possibility of this ever becoming an issue, you need to learn which traits are important to look at when reviewing a potential tenant. Here are some of them.
1. Reasons for Moving
The first thing you want to know is why they left the last place they lived in. Asking them directly might not get you an honest answer that you need, seeing as how it is unlikely they will outright admit to being evicted after demolishing their last rental apartment during a lavish party. Contacting their previous landlord isn’t a 100 percent reliable idea either seeing as how they might be the reason they left in the first place, which is not something that the previous landlord will admit. In fact, if this is the case, it is most likely that they will throw a wide array of unjust accusations towards your new tenant.
Therefore, if you want the real answers, you have to dig for them. Sure, here there is also a lot of room for avoiding the truth but some of the most common answers, like moving for a job or a college, leaving their parental home and similar are quite straightforward and often completely honest answers. Furthermore, it is much easier to detect if someone is working their way around this simple question than to try being a cold-reading lie detector from the start.
2. Openness Towards a Background Check
As we already stated in the previous statement, a background check is not nearly as reliable as you would expect but the reaction of your future tenant to this question might be quite revealing. For instance, instead of just asking for a recommendation from their previous landlord, you can also ask for one from their previous employer, as well. While some may argue that this is hardly relevant to your current situation, uncovering their manner of conduct at work, as well as how responsible they are is something that is vital for a cautious landowner.
Furthermore, learning about their responsibility towards obligations is important in order to predict your future relationship. Accepting a tenant who’s known for not following the contract might result in a future property dispute, which would mean that you would have to consult expert lawyers Sydney area has to offer, to resolve the issue.
3. Monthly Income
The next thing you need to keep in mind is that just being able to cover the price of the rent, usually isn’t enough to make their income sufficient. Sure, in a situation where you’ll take anyone just so that the place isn’t vacant, this kind of a loose criterion might work. On the other hand, in a situation where you are looking out for the well-being of your rental property in the long run, you need someone who can at least brag with an income that is two-and-a-half to three times the cost of the rent.
One of the most important questions you are about to ask is who else is going to live with them. The person you’re talking to might be moving in with their entire family, with their significant other or just plan on living there on their own. Keep in mind that this has a direct impact on your relationship with the neighborhood. Also, if you have a strict no-pet policy, this too is something that should come up at this point of negotiations.
5. No Subletting
Finally, seeing as how choosing a tenant is a big deal for you, it would be simply absurd to be ok with your tenant getting a couple of tenants of their own. You see, there is no guarantee that they would pay as much attention to the tenant selection as you did, after all, it’s not their place and they can always just move out and go somewhere else. Therefore, you need to make it abundantly clear to them from the very start that there is no subletting, at least not without consulting with you first.
At the end of the day, your rental property is probably one of the most valuable assets that you possess, which is why it has to be the absolute epicenter of your attention. Needless to say, choosing the right tenant for the place is the best way to protect this valued possession of yours and provide your household budget with a steady stream of income.
Author Bio: Leila Dorari is an entrepreneur and freelance writer from Sydney. She’s passionate about home improvement and living better lives by nurturing our surroundings. In her free time, you can find her window shopping or exploring new ways to make her life more meaningful.
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