The most important decision you make that will determine the success or
failure your rental property is the person you put in the property a bad
tenant can potentially cause years of stress, headache and financial loss while
a great tenant can provide years of security, peace and prosperity so don't
underestimate the importance of renting to only the best tenants now while it is
not possible to know with a hundred percent certainty what type of tenant
your applicant is going to be there are some telltale signs and traits that will
give you a pretty darn good idea if they're going to be a good tenant now
here are six things you should be looking for to fill your next vacancy
number-one their ability to afford the rent payment the first and foremost
quality of a good tenant is there being financially responsible and their
ability to afford the rent without proper payment atlanta will be forced to
evict and be faced with potentially thousands of dollars worth of legal fees
lost rent and damages most landlords require that a tenant documentable income is
equal to at least three times the monthly rent many tenants believe that
they can afford more than they really can so it is the job of the landlord to
set the rules and protect their investment if the tenant is already
financially responsible earning three times the monthly rent should be
sufficient number two their willingness to pay on time while some landlords look
at late rent as a benefit because of the extra income from the late fees a late
paying tenant is more likely to stop paying altogether the stress involved with the
rent doesn't come in is not a pleasant experience and can be avoided by only
renting to tenants have a solid history of paying on time
number three the long-term outlook for their job stability while a tenant may
have the ability to pay rent and they can make it on time right now their
ability to do so in the future is often determined by their job situation if
they're the type to switch jobs often have long periods of unemployment you
may find long periods of missed rent moving on number four their cleanliness
and housekeeping skills no tenant stays forever and when they leave you want the
property back in good condition as such it is important that the tenants day-to-day
living be clean and orderly they must take
good care of the property that you entrusted with them i'm moving on number
five their version to crime drugs and other illegal activities a person who
has no regard for the law will also likely have no regard for your policies
tenants who engage in illegal activities will cause nothing but stress and
expense to you so be sure to run a background check on your prospective
tenant to ensure they don't have a shady past that said keep in mind that a past
history of drug or alcohol abuse could be considered a medical issue not
criminal that's something you can't deny a tenant over without being guilty of
violating fair housing laws if they are selling drugs that's different than
using so be sure to study up on fair housing laws in your area
I finally number six the "stress quotient" how much stress that they're going
to cause you the final quality of a great tenant is something that we might
open the properties my wife and I call these stress quotient in other words the
amount of stress a tenant is going to cause you - the landlord some tenants are
very high-maintenance and constantly demanding time and attention
others simply ignore the terms in their lease and they need constant babysitting
reprimanding and discipline like late fees and phone calls this habit of the tenant will
only be a thorn in your side
I just cannot stand those tenants now obviously no tenant is going to be a
hundred percent perfect so decided how close to perfection you will require is
a personal choice that depends a lot on your desired involvement level and the
community in which your property is located if tenants are difficult to find
it might be financially advantageous for you to actually rent to a less than
perfect tenant in order to fill a vacancy and notice i said less than
perfect not rent it into anyone on the other hand if you have plenty of applicants to
choose from you can be significantly more picky just remember it's much
better to have a unit vacant a little longer while you wait for the right
tenant than to rent it to the wrong person
so how exactly do you weed out the bad tenants and find those quality ones the
answer involves studying strict qualifying standards and screening your
applicant carefully to verify whether or not they meet those standards so if you
want to know more about how I screen tenants be sure to pick up a copy of the
ultimate guide to tenant screening for free by clicking this link right here or
by simply visiting biggerpockets.com
/tenant screening now if you enjoy this video I need three quick favors from you
number one tell your husband, wife, boyfriend/girlfriend, whatever that you
love them
trust me they need to hear it more often love you heather
seriously I mean like right now like text them or yell upstairs or something
i can wait okay all right
secondly click the little thumbs up button here in this video to let the internet
magicians know that this video was helpful and show it to everybody in the
world that will be amazing and number three you want to know more about managing
rental properties
be sure to pick up a copy of the book on managing rental properties written by
myself and my amazing wife Heather you can get it on Amazon or by visiting
biggerpockets.com /a rental book okay with that it's time to get out of here
for biggerpockets.com my name is Brandon Turner signing off