Purchasing property for the purpose of renting to others can be very lucrative. With that being said, it is by no means easy. There are numerous factors to consider before placing your property on the rental market, and at the top of the list is the quality of prospective tenants.
How do you know whether or not a tenant will look after the property? Can you be sure that they will pay the rent on time? The truth is that there are no guarantees, but screening your prospective tenants can certainly help to reduce the risks you’re assuming. Outlined below are a few things to keep in mind.
Are they who they say they are?
One of the first things you’ll want to rule out is any type of fraudulent activity. Obtaining secure evidence of the identity of your prospective tenant can help with this. Make sure you see identification from the individuals, such as a driver’s license or passport. There are also checks that you can perform online, such as looking up the license plate of their vehicle, to ensure that they are who they say they are.
If your prospective tenant has rented elsewhere and looked after the property and paid rent on time, then a previous landlord should have no problem providing them with a reference. This is something that you can request to see during the rental application process.
Carry out due diligence
There are numerous other ways that you can look into your tenant’s history. For example, background checks and credit checks can highlight potential problems with prospective tenants.
Screening your tenants cannot guarantee that a landlord/tenant dispute won’t happen, but it can significantly reduce the risks. If you are facing a dispute, be sure to seek legal guidance proactively to better safeguard your interests.