After weighing the pros and cons of investing in real estate, you’ve decided to move forward with buying an investment property. Congratulations! This is the first step toward building your property investment portfolio. The next step, however, is turning that investment into profit; and to do so, you will need to start looking for good tenants. As many real estate investors will tell you, though, finding good renters can be a challenge. Here are some tips to help you get started:
1. Know the Tenant You Want
Before you begin looking for tenants, you’ll first want to get a clear idea of what your ideal tenant will look like. Will this property be used for short-term or long-term rentals? Are you looking for a young family to fill a 2-storey home or a business professional to rent a high-rise condo in downtown Saskatoon? Would you consider pets or is it too much of a risk for the property? Deciding on key qualities for your ideal tenant will better help you narrow your search and advertise your investment property to the right potential candidates more effectively.
2. Have a Screening Process
A potential tenant may sound great on paper and may even have a fantastic personality in person, but you never know what risks they may be hiding. This isn’t to say that every renter has something to hide, but in order to protect your investment best, it’s crucial to screen each person to confirm their responsibility and reliability. Things you may consider as part of your screening process could include collecting references, verifying employment, performing a background check, and running a credit check.
3. Advertise Your Property Effectively
Advertising your property for rent is your first line of defense in finding good tenants. Of course, you want to highlight the incredible features your property has to offer them, but you’ll also want to include your expectations of them, as well. Clearly list your criteria, including details of the screening process, to better eliminate less qualified applicants before beginning interviews. You may still see some hopefuls throwing their names in the ring to see if you’ll really stick to your list, but fewer than you may have gotten without including it.
4. Conduct In-Person Interviews
While phone calls are certainly less time-consuming, in-person interviews are essential for finding good renters for your investment property. You’ll be able to get a better sense of personality and demeanor of your potential tenants. Plus, you can also use the interview as an opportunity to let them tour the property to see if it’s the right fit for them, too!
5. Communicate Clear Expectations
Effective communication is the foundation of any successful landlord-tenant relationship. This helps to solidify expectations and help both you and your tenant feel confident in what the guidelines of their tenancy are from the beginning. Let them know house rules, maintenance responsibilities, and due dates for rent. Be responsive and answer any of their questions and concerns to help encourage open and honest communication from their end, too.
Real estate investing can be an exciting new venture, but finding good renters can be difficult to do. With these tips for finding good tenants, however, you should be able to mitigate much of the stress associated with this process and hopefully come out with a great fit.
Still searching for the right property for your investment? Contact me today to start your search.