Did you recently purchase a condo unit in Hoboken, NJ or Newark, NJ? Chances are you may be an investor and already had plans to turn your purchase into an investment property. Before you can monetize your rental home, you need to find the right tenant. Choosing the right person to rent your home makes all the difference.
Unfortunately, finding a bad tenant is often easier than finding a good one. You need to find out how he or she is as a renter, gauge the person’s ability to take care of your rental home, and consider his or her lifestyle. You should keep in mind that conducting an interview face-to-face with potential tenants is only the first step. While these interviews can help cut down unwanted expenses and risks, there are other factors, such as employment history and rental history, to be mindful of. Here are some tips on how to select the right tenants from the get-go:
Work Closely with a Reputable Real Estate Agent
Why go through unnecessary stress when you can work with a real estate agent to simplify the process for you? With the help of a professional, you can avoid the paperwork that come with renting out your property. What’s more, you can tap on their network of potential tenants. Real estate agents possess industry-specific knowledge, such as real estate legalities and the median rental rate in your location. Information like these are crucial to your success.
Don’t Rush Things
Finding a tenant can take up several days or even weeks. By then, you may be experiencing some level of desperation, in terms of wanting to close the deal. However, you should never feel obligated or pressured to accept the offer of a tenant that sounds too-good-to-be-true. In other words, avoiding selecting tenants on a whim. You need to narrow down your pool of applicants to only those that meet your criteria. If instinct tells you that there is a better tenant out there, it may be true. Do not hesitate to delay your decision until you find the best one.
Income Verification
You should not think you are being offensive when you request to verify the income of your potential tenant. You need to make sure that they are earning a stable income, so that they can afford to pay the rent, ON TIME. Consider checking with the potential tenant’s past landlords. If they assert that he or she pays on time, you might have a winner. In addition, make sure that their monthly income is at least three times the cost of your asking price (rent).
Conduct Thorough Background Checks
How well do you know your tenant? This is something you need to constantly remind yourself. Do not be swayed by the initial meet-and-greet, which may have taken place smoothly, like butter. Consider calling up the potential tenant’s references to know more about his or her rental history and check if they have a history of walking out on a lease. The people to call include their previous landlords and employers. If the person you are dealing with is uneasy at the thought of a background check, they don’t deserve the keys to your home.
