Troublesome Tenants: Can They Be Avoided?
There are all sorts of reasons why you might want to rent your home to tenants. It might be a business move, seeking to make the most profits in the long run. You might have found that it’s very difficult to sell, so this is your next best option. No matter the reason, you need to be careful with your next steps. Renting is great…when your tenants are great, too. It’s all too easy to find yourself in a troublesome position due to a few bad apples, though. Here are some things you can do to avoid a bad situation.
Hire A Property Manager
If you’re investing in property, you’re going to want to get involved in the property management game. But, property managers can come in useful no matter what your circumstances. You won’t have to deal with complicated law, tenant issues and more. You’re going to need to hire a reputable property manager if you want to get the best results, of course. Or, you could just get into the property management business for yourself!
Ask For References (Ideally From Previous Tenant)
You won’t know a whole lot about the tenant before they move in, so you must be proactive. Firstly, it’s important to obtain a character reference from someone they know. You can never quite trust these, though, so it’s even better if you can get one from an ex-landlord. If they come back with the all clear, there shouldn’t be any reason to suspect this tenant will be a troublesome one.
When you’re leasing your property, you expect to be paid on time on a regular basis. Unfortunately, this isn’t always the case, and it can be incredibly frustrating. In order to determine whether money issues might creep in, you need to examine their employment status. Where are they working? Will their salary cover the rent? What has their job stability been like in the past? These are all important questions to find the answers to.
Put A Short-Term Agreement In Place
In the first instance, you’re going to want to put a short-term agreement in place. This means that if it all goes wrong, you’ll have a get-out clause. It’s also very important to make sure all the relevant documentation is completed before you hand any keys over. Don’t worry if things turn really sour in the first few weeks — if they break the agreement, they’re out.
Go With Your Gut
At the end of the day, you’ll have a gut feeling about the tenants you’re planning to bring in. Don’t be tempted to simply accept anything in order to get the deal done quickly. Take the time to research their backgrounds and whether they’ll be a good fit for your property. You’ll know whether you have a good feeling about them from the get-go. There’s nothing wrong with going back to the drawing board and starting again. It’s certainly a heck of a lot better than having a troublesome tenant to deal with!