Many people invest in real estate to grow their wealth and supplement their income. When you own a property that you want to rent out, you’ll need to find the right tenants to begin making money. Although you may be nervous about who you’ll allow to move in, there are a few tips to follow to find the right tenant.
Evaluate Their Credit
You may like the personality of someone who is applying for your rental property, but it doesn’t mean that they’re financially responsible. You’ll need to take a look at their credit score and ask for copies of their pay stubs to verify their income and employment. Look for someone who has at least two years of work from the same employer to ensure that they can make their rent on time each month. It’s also necessary to look at their history and if they’ve had any evictions on their record.
Conduct a Background Check
You can quickly search through public records to determine if your applicant has a criminal record. Obtain the tenant’s last name and date of birth. Get a copy of their ID to prevent them from using false information. Their background check should include a sexual offender database search, a county criminal court search, a federal court record search, a statewide criminal record search, and a department of corrections offender search.
Look at Their Consistency
You can put more trust in a tenant who has consistency in their history and hasn’t moved multiple times or changed jobs every few months. Consistent tenants are less likely to break their lease or move after a year of renting the property. Their debt-income ratio should also not be too high, which will prove that they can manage their finances. They’re less likely to cause problems with your property management Phoenix if they have a clean background.
Follow the Federal Fair Housing Rules
You can avoid being accused of discrimination by following the Federal Fair Housing Rules. Avoid discriminating based on religion, sex, disability, familial status, national origin, and race or color. Each state differs on the rules, making it necessary to research the guidelines ahead of time before you begin interviewing possible tenants.
You can have peace of mind knowing that you’ll secure your rental property with the right tenant by following the right steps. You’ll enjoy renting out the home and housing a responsible individual.