When you’re a home owner looking to rent out your property to make extra money, you want to make sure you find the right tenants to inhabit your property. The best investment for this industry is good tenants; this is one of the only ways you know you’ll make money in the long run. Experienced property developer Tim Manning knows that there are certain things that indicate whether a tenant is likely to be problematic or not. Here are some of the biggest red flags to look out for when considering renters:
If your potential tenant has a lower income, you’ll feel the ramifications of this in the long run. Renters that’re unable to pay their dues will no doubt cause you problems during the period of their tenancy. Of course this doesn’t mean that you should discriminate against all lower income earners, but you need to consider within reason if it’s possible for the renter to be able to afford to live on your property.
- Credit Score
Ensure that your tenant has a satisfactory credit score. This will be a good indication of whether they’re in the habit of paying their bills on time and maintaining a healthy economic lifestyle. Tenants who owe a lot of money will also struggle with the basics of paying rent and bills as the majority of their income will go on pre-existing debt and this will cause bigger problems in the long term.
- Criminal Record
This one is difficult because it’s important to be impartial to certain aspects of records to avoid being discriminatory. Everybody deserves a second chance, but if your potential tenant has been charged with violent crimes such as domestic abuse it wouldn’t be a good idea to let them into your property.
- Bad References
This should be one of your biggest focuses. Whether or not another respectable property owner is willing to vouch for them and would recommend that they live in your home. You should be able to tell from the tone of the letter whether the owner and tenant parted on good terms. Don’t hesitate to follow up with the person to guarantee that the letter is genuine. This is a truly important decision and could have long lasting impact on your daily life; you want to make sure you’re protecting yourself from a potentially bad situation.