When a property is available for rent, it is often the landlord’s responsibility to find a reliable tenant. This is an important aspect, especially when the landlord wishes to protect their investment. After all, the alternative is an unreliable tenant, and this could result in late rent payments and property damage; both of which would cause additional stress.
However, there are ways to ensure you select trustworthy tenants. One of the best methods is to use a property management company that performs tenant screening. Most companies, like this reliable property management for Toronto condo owners, use detailed screening practices to ensure bad tenants will not hurt the landlord’s bottom line.
If you are a landlord, you can also put in the work and look out for the qualities and traits of a dependable tenant. Three of these qualities have been outlined in this post below.
Clear Background Check
Although there are some countries that do not consider background checks essential, many landlords in Canada and the US believe this is an important step. The main reason for performing a background check is to mitigate risk. Someone with a clear background check might be more likely to be a safe neighbor, take care of the property, and pay their rent on time.
A background check will usually include a reviewing the applicant’s criminal record. This will review arrests, felony convictions, and misdemeanors, depending on the property’s location and the screening service used. Landlords must follow the law in this aspect especially, due to the sensitive information they might be able to access; it is wise to check what details can be checked and how far back they should go.
Good Rental History
When you have selected which of the could-be tenants you might go ahead with, one of the primary you should check is their rental history. You can do this by contacting their previous landlords. Previous landlords can provide details on specific details, and some of this information might be considered a red flag, such as evictions, high debt-to-income rates, late payments, and so on.
Thankfully, this information can prove whether the individual would be a suitable tenant in your property. If a previous landlord speaks highly of one of the applicants, then you can be reassured that they would be a good choice as they have proven to be reliable and responsible. However, it might be wise to take a landlord’s reference with a pinch of salt; it is entirely possible that they just want to get rid of a bad tenant.
Stable Income
Finally, you should ensure the tenant has a stable income. Confirming a potential tenant’s income is vital to ensure they can afford the rent; this will often relate to verifying their employment status. This can be achieved by asking the individual for bank statements, employment letters, or pay checks for the last few months. You can confirm the details relating to employment status and income by contacting the person’s employers.
When a tenant has a stable income, they will have the financial means to pay rent in a timely manner, which is ideal. No landlord wants to deal with the hassle of late payments. A tenant that is financially reliable will have a consistent income and be employed steadily, able to make payments on time, and save the landlord from unnecessary stress.
You should also take the time to conduct a credit check when checking the potential tenant’s financial status. This will reveal their credit score, which can be consider “good” if above 670, any remaining debt, and such. Here, you should check for frequent late payments or recent bankruptcies that would affect their ability to pay on time. A poor credit score could be a sign that the person does not have financial stability.
By following the advice on ideal qualities for reliable tenants that have been outlined in this post, you are much more likely to select the right applicant when your property is available to rent. After this, it is your responsibility to form a good relationship with your tenant and prevent problems from occurring.
