3 Things to Look for in a Potential Tenant

Income properties can be an excellent source of passive income, but only if you have the right tenant in your place. Unfortunately, it isn't always easy to pinpoint the person who will fill that vacancy and take care of your property, which is why a thorough screening process is a must. Here are three things to look for in a potential tenant and why they matter.

All too often, people gloss over references - assuming that the applicant wouldn't list them unless they only had positive things to say. However, there is often a lot more to the story, which is why it never hurts to contact listed references and ask them about the potential tenant.

When you contact references, ask them how they know the applicant and how long they have had a relationship. In addition to getting a general feel for what kind of person you are talking to and asking about, pay attention to details that might impact their ability to rent successfully.

For example, if the person lists a past employer as their reference and the person mentions they had trouble getting along with coworkers, it could be a red flag that you wouldn't like managing that person. Also, consider the position of the person you call as a reference. If the listed person is a friend or family member, you can safely assume that they are trying to help the applicant get into a great apartment.

Although a person's financial information might seem inconsequential in regards to their rental application, those marks can say a lot about whether or not you should work with them in the future. After getting written permission from the tenant, use their social security number to run a credit check.

In addition to letting you see how many other outstanding accounts the person currently has, credit reports also show crucial data such as late payments, evictions, employers, and previous addresses. If you notice that the applicant tends to move a lot, struggles to pay bills on time, and doesn't have a current employer, it might be a sound financial decision to keep looking for a renter.

Remember that anytime you decide to run things like background checks and credit inquiries, it is important to screen every potential tenant, not just certain individuals. Doing this helps you to avoid discrimination claims since you are checking each person carefully.

How easy was it to schedule an apartment walk-through with that tenant? When you call, do they pick up? How do they respond when you do speak with them? If potential tenants seem flaky, aggravated, or lazy, it might be difficult to work with them when you need to do things like collect rent or resolve apartment problems.

Look for someone who is flexible, friendly, and goes out of their way to make a good impression. Pay attention to how they are dressed and how they conduct themselves during the walk-through and initial application process. If you can tell that they care about the details, it might be easy to work with them as you conduct everyday business.

Finding the perfect tenant can be difficult, which is why Wilson Property Management is there to help. Whether you need help choosing the perfect person, answering phone calls during the day, or completely taking care of the house or apartment, our experienced team can help.