Many commercial property owners choose to rent out their property. If this interests you, you need to be on the lookout for the best tenants.
Quicken Loans explains that owning a rental can be lucrative for most people, but only if they choose a good tenant.
No warning signs
When reviewing tenant applications, be on the lookout for red flags. One of the biggest red flags is an eviction history. Make sure to investigate any evictions that the potential tenant has. If he or she has a rental history, look for late payments or missing payments. A tenant who struggled to make rent in his or her last place will probably struggle with yours too.
A clear background
Every property owner should have clear criteria for any tenant. While you should be unbiased in regards to the applications, you should only be unbiased if the tenant meets certain criteria. Your tenant should have a rental background. If he or she does not have a background, you may want to consider a cosigner. Even without a rental background, there is information that you can find about a tenant’s history.
For instance, you should perform a background check for criminal history or criminal complaints. Likewise, you should perform a credit check to ensure that he or she does not have a low credit score. A good tenant will be able to hold down a job and will be able to provide you with the security deposit and rent that you ask for.
When choosing a good tenant for your property, a checklist may help you ensure that he or she checks all the boxes.