Minimize conflict and financial loss through strong and reliable tenant screening and vetting practices
A rental property is only as profitable and viable as the quality of the tenants inhabiting the space.
It is essential that tenants pay rent on time and observe and conform to the rules in the lease or rental agreement.
Chasing tenants for rent and managing delinquent and high risk tenants can consume a lot of time and resources and can cost a lot of money.
Cornerstone Properties ensures that landlord and property manager carefully screens each and every rental or lease applicant to identify risks and embrace the strongest candidates.
But what qualities do the best potential tenants possess? Here are four crucial qualities (among others) that any prospective tenant should possess:
Ask the prospective tenant why they are moving. Are they looking for better accommodation or more room, or are they looking for a new condominium, apartment or townhouse after being evicted.
Ask the prospective tenant how they got along with former landlords and neighbours. Ask if they are suing – or being sued by - former landlords or property managers. Ask about their day-to-day relationships with neighbors.
Ask the prospective tenant how soon do they want to move in. If they are rushed and ready to move in that day, there may be some skeletons in the closet as most property managers, landlords and rental or lease agreements require 30 days notice to terminate an existing lease. While unique situations exist (job loss, relationship break up, domestic abuse, etc.), understand that most responsible prospective tenants will begin their search weeks - if not months - ahead of time.
Can the prospective tenant afford the condominium, apartment or townhouse? While different calculations and financial qualification standards employed by different landlords and property management experts, a good baseline is a prospective tenant whose monthly income is no less than two and a half times the monthly rent. As well, a prospective tenant who does not have enough money to pay the required security deposit up front may be a red flag. Proceed cautiously.