Property management is one of the lucrative avenues to make a stable profit. One of the myriad of options many investors choose to delve into is the tenancy, an aspect in real estate investment that yields the most revenue—provided that it is executed well. Success in tenure is usually determined by a multitude of aspects. Some of the considerations would include choosing a property in a premier location that is in proximity to offices, school districts, and entertainment hubs. Apart from that, you also need to ensure that you treat the property well and set a profitable rental rate that would allow you to leverage the competition at the same time. However, to be a successful landlord, you would also need the cooperation of a good tenant. Indeed, finding a good tenant is a dime a dozen, but more often than not, the success and profitability of your property would be hinged on your ability to find them.
But this begs the question: What makes a good tenant? And how do I guarantee that I have already found them? Well, if you have condo units in Cebu up for lease or elsewhere, here are some of the characteristics you can identify in a good tenant that is undoubtedly for keeps:
1.) A good credit score
Credit scores are great indicators of your prospective client’s capacity to pay so you might want to look into that. Moreover, it can be determinative of a certain individual’s history and their sense of responsibility. Remember, a credit score is usually calculated based on some factors. Some of these would include how much a person currently owes, their previous payment history, the types of credit cards they use and how much new credit they have. Although a good credit score does not reflect your prospective tenant’s ability to treat your property with respect, it says a lot about their financial reputation—insomuch that you can expect them not to default on their payments.2.) Steady Employment
Employment is one of the pivotal indicators in determining whether or not your prospective tenant can keep up with the rental fees. For this reason, your potential client’s employment should be of paramount concern to you when screening them. A good credit score could only do so much. Your client would also need a reliable source of income in order to make good with their rental payments. Although it might seem knotty, you need to ask your potential tenant where they are currently employed. As a landlord, this is your prerogative during the screening process. Watch for any signs of impulsiveness and volatility that might be the cause of concern. A prospective tenant that is flakey and flighty would probably not be able to hold onto a job for too long and may default on their rental dues should they lose their job. Remember, you want a dependable tenant that would not only be able to pay their rent on time but also one that would be able to keep up with the rental payment increments should there be any.3.) Goals and Vision
Regardless of whether you are conducting a formal or informal interview, it is always ideal to consider asking what your prospective tenant’s goals and vision are. How they answer you would be an excellent way to gauge where they are in life and whether or not they have any direction in life at all. If they cannot answer you or if the question is met with difficulty, you might want to think twice about approving the applicant. No doubt, having no direction in life is arguably a sign of an impulsive tenant, and it might cause you some problems in the future.4.) Perform a Criminal Background Check
One of the things you should consider before approving a client is to know his or her criminal background. Of course, as a landlord, you would not want to be harboring a criminal in your property. Not only would this pose a safety risk to your other tenants, but to you and your property as well. You want to ensure that the prospective tenants you will be approving would not only do damage to your property but would not steal from you as well.5.) Drama Free
Drama is basically a colloquial term for hassle and stress. As a landlord, your life would be so much easier if you approved tenants who are drama free as they would mean less trouble and stress for you. In this regard, be a little discerning and meticulous during the screening process as a lot of overt signs would point to drama based on what your prospective tenant would tell and show you. If they have had difficulties in renting before or have jumped from one job to another, it is highly likely that they are unstable and volatile. The less you have of these characters in your property, the better off you will be.Image Source
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