Now that you have a rental property, how do you find great and quality tenants?
One of every landlordâ€™s biggest fears is having a nightmare tenant. So many real estate investors have lost thousands of dollars due to bad tenants.Â
Yes, some tenants refuse to pay rent on time, donâ€™t treat your property with respect and are just terrible to get along with. And, of course, no landlord wants this kind of tenant.Â
Savvy landlords explore various methods to select their tenants carefully. However, if you are a beginner investor, here are seven top tips to help you find great tenants for your rental property.
Tip #1 – Post ads in the appropriate channels
The two most popular platforms for sharing your ads in Canada are Kijiji and Facebook marketplace. There are others like Zumper and a few other social groups, but they arenâ€™t as popular.
Bear in mind that different tenant types look for different places.Â
For example, a student would search for a rental in the â€œoff-campusâ€ housing category, whereas someone in-between homes may search for a rental in the â€œshort-termâ€ housing category.
So, you could have a perfect place to rent and a perfect ad, but if you post it in the wrong category or platform, it won’t get the right attention it needs, and you won’t find great tenants.
Tip #2 – Use compelling and creative headlines for ads
When writing an ad, ensure your headline is catchy and stands out to the right tenant. Do not use the typical â€œthree bed, two bath house for rentâ€, standard headline.
Instead, you can highlight the specific offering. For example, Â â€œA renovated, upper unit, three bed all-inclusive, move-in ready house.â€ You want to make sure your headline is enticing enough for the potential tenant to click on the ad.
You can also use special characters to make your headlines stand out.
Tip #3 – Collect information with Google forms
When your ad starts to get traction, and potential tenants will start responding to it, the next thing you need to do is gather information.
You can create a template yourself or use google forms. Some of the questions you can add to your form include:
- When are you looking to move in, and for how long?
- How many people are moving in?
- Do you have any pets?
- What’s the monthly household income before tax?
You can include whatever information you need in the form to pick your ideal tenant. The responses to these questions will give you a general idea of who the potential client is, so you donâ€™t waste your time and theirs.
For example, if you’re renting a duplex and you know the existing basement tenant has allergies to dogs and cats, you may have to ask the potential tenant if they own pets so you can screen them out beforehand.
If the responses on your formâ€™s questions fit your tenant requirements, you can move along with that potential tenant by booking showing appointments.
If the responses on your form don’t meet your potential tenant requirements, you can skip that personâ€™s application.
Tip #4 – Create demand for the property
One way to create demand for your property is to schedule potential tenants when other applicants are viewing your property.
Itâ€™s human nature for people to want what others want!Â So, when other applicants see the other people viewing your property, it creates a psychological shift that could increase demand.Â
The idea is not to get more rent or create a bidding war, although that could happen sometimes; it is just to make potential clients more inclined to take the next steps quickly.
Tip #5 – First impressions DO count
How your tenant presents themselves at their showing matters a lot.Â
- Are they well-mannered?
- Are they dressed decently?
- Did they show up at the scheduled time?
- If they will not show up on time, did they communicate that they are running late for the scheduled appointment?
When taking your potential tenants to a showing, make sure you keep these factors in mind.
Tip #6 – Get applications done as quickly as possible
Once potential tenants see your listing physically and show interest, get applications done as quickly as possible.
If the tenant fits and meets your criteria, get the lease signed and deposit done immediately.Â
Donâ€™t leave potential tenants waiting, as they may get distracted by other listings, and you donâ€™t want to lose a potentially suitable tenant.
Tip #7 – Always go with your gut feeling
The tenant may present themselves appropriately and even have a great application, but if, for whatever reason, your gut says no, donâ€™t approve of them or rent your listing.
Best of Luck! Hopefully, these seven tips will guide you to find great tenants for your rental property.
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