How to find a good tenant when there are currently over 111M renters within the United States. The total % home ownership rate is at its lowest rate in over 20 years at 63.7%. There are more and more renters entering the market but supply is not keeping up with the increase in demand. All of this is great for those who want to rent out their properties, but how do you increase your chances of finding a good tenant that will take care of your property like it was their own.
Below are some tips on:
How to Find a Good Tenant
1) Know the Fair Housing Laws
First and foremost, it is imperative that you fully understand the fair housing laws. You absolutely cannot discriminate because of race, color, national origin, religion, sex, disability and the presence of children. In the sale or rental of housing you cannot do any of the following actions based on the above discriminations.
- Refuse to rent or sell housing
- Refuse to negotiate for housing
- Make housing unavailable
- Deny a dwelling
- Set different terms, conditions or privileges for sale or rental of a dwelling
- Provide different housing services or facilities
- Falsely deny that housing is available for inspection, sale, or rental
- For profit, persuade owners to sell or rent (blockbusting) or
- Deny anyone access to or membership in a facility or service (such as a multiple listing service) related to the sale or rental of housing.
2) Reach as Many Potential Tenants as Possible In A Cost Effective Way
You want to reach potential tenants at the “Zero Moment of Truth”. This is Google’s term which refers to the research which is conducted by a user online about a product or service before taking any action i.e. searching for houses for rent before leasing a property.
The best way to accomplish this goal in a cost effective way is to post your listings on multiple rental and classifieds sites. Here are a few sites you should post your rental property to:
- Free but can syndicate to multiple sites like (zillow, trulia, hotpads, etc for a small monthly fee)
- Free in most cities.
- Cost Per Lease for Apartments
- Free for homes if you post through partner sites (i.e rentbits)
3) Curb Appeal (inside and out)
Similar to the Broken Windows Theory, if your front yard and curb appeal is clean, grass and shrubs are cut and the wood is painted, the first impression tends to attract higher quality tenants, which can also equate to more rental revenue. Don’t stop on the outside, make sure the inside is clean and clutter free as well.
4) Answer Your Leads
Answer the phone and email leads that come to you immediately, you will have a service advantage compared to other local competitors since more than 50% of all rental leads currently go unanswered.
- Screen all Interested Tenants
- Protect you and your Renter with a Rental Lease Agreement
- Get Proper Property Insurance for Rentals (Managing)
- Do a Property Inspection with the Tenant Before they Move In (Inspection)
- Fix Issues that Arise Quickly (Managing)