If you’re in the rental property business, you know too well that no tenants are perfect. Whether you like it or not, you’ll make a wrong decision of approving one tenant that will cause you a headache. It’s one fact about the real estate business that you should accept, but that doesn’t mean you can’t do anything to avoid it.
They say prevention is always better than cure, and you can apply it to your property management too. Here’s how you can practice it in your tenant search:
Conduct proper screening
Hearing your future tenant’s reason behind their desire in wanting to live in your place is not enough. You should include the following in your tenant screening process:
- Do a background check – Doing a background check help you verify the information your applicant tells you. In this process, you get to gauge whether your future tenant is trustworthy or only saying false information. One important thing to check here is their criminal records. You wouldn’t want to let in a criminal with active charges in your property.
- Check their income – Finances are one of the top causes of property abandonment. Before you accept a potential tenant, make sure they can pay their rent. There’s nothing wrong with including an income check in your list of requirements. Most property management has it in their criteria.
- Check their eviction history – You can always ask people the reason they left their previous homes. This way, you understand the way they think. You’ll be able to gauge who has problematic cases with their landlords or who has financial problems. It can also help you see their priorities and preferences, helping you improve your services if ever you consider their application. Don’t forget to double-check this information with their previous landlords.
Your future tenant should at least pass all these three requirements before you approve their applications.
What to do when your tenant suddenly disappears
Once in a while, you’ll find yourself in any of these situations:
- Tenant packed up and left
- Tenant did not pay their rent for a few consecutive months
- Tenant is unreachable via call or texts
- Tenant moved out of the state
No matter how well you screen your tenant applicants, any of these can happen. It’s not your fault, though. There are two ways to deal with a lost tenant:
First, put all your energy into collecting the rest of their rental fee, filing an eviction notice, and spending money and time for a court process.
Second, move on as fast as you can, learning from your mistake, re-enlisting your property online, and starting your search for a new tenant.
If you’ve lost more than you earn for this tenant, maybe going after them is a better choice for you. If the amount you lost is something you can easily replace with a better tenant, then you can opt to move on. Choose which method would give you the comfort that you need. It’s up to you.
Business is business. You lose some and you gain some. However, it doesn’t mean you won’t prepare for these types of happenings. Study the field of real estate well, do a good job with tenant screening, give your tenants the best kind of service, and know when to evict and go after your rights. If you think you need help with all these, you can consult and avail of the service of a property management company.
Need a home rental property management for your rental business? We are an award-winning property management company based in Indianapolis, ready to share with you our expertise. Contact us today at 317-870-3249 to know how we can help.