Top Tips for Acquiring Quality Tenants

Being a landlord can be a great source of passive income, but it can also be a lot of work. Unfortunately, not all tenants are created equally. Some miss payments, trash your property, or disobey lease terms. That puts you in an uncomfortable situation. Avoid stress by following a few tips to acquire and maintain quality tenants.

Out With the Bad

It’s not pleasant, but it may be necessary to remove bad tenants. In some cases, removal may mean denying a lease renewal. In others, it means forcing an eviction. Not only do unpaid rent and property damage cost you money, but unsatisfactory tenants can deter quality tenants from considering your property. 

Professional companies can help you perform your Las Vegas eviction. You can feel safe and secure with the removal. A company will get the process done quickly and within all legal boundaries.

Learn the Laws

If you are going to be a successful landlord, you must familiarize yourself with fair housing laws. Be certain that your tenant screening doesn’t cross into discrimination. Discriminating based on nationality, race, religious beliefs, disabilities, sexual orientation, or familial status can land you with bigger problems than a bad renter. 

There are four exceptions to fair housing laws. A building with four or fewer units may be exempt from the rules if the landlord occupies one of the units. If a private landlord owns three or fewer single-family homes that are rented without a broker, fair housing does not apply. Specified senior communities need not worry about age discrimination. As long as private clubs or religious organizations don’t discriminate in selecting members, landlords may favor members.

Use an Application

You should use a detailed application to gather all pertinent information about potential renters. Information can include applicants’ names, occupants’ names, driver’s license numbers, social security numbers, employer information, and pets. Many landlords charge a fee with the application.

Once you receive the information, use it. You can run background checks and verify proof of income. Make the calls to references and question if applicants will pay on time, get along with neighbors, communicate, and care for the property.

Run Background Checks

Running background checks is a good investment before approving a tenant. Depending on how detailed a check you select, it will cost anywhere from $10 to $500. As a landlord, you should look for the history of employment, bankruptcies, criminal records, credit scores, and evictions.

Never judge a book by its cover. You must treat all applicants equally, and the background check may surprise you. Applicants may be clean-cut and well-spoken, but the background check is the only way to determine if they are good tenants.

Require Proof of Insurance

Even if you have landlord insurance, you can request proof of renters’ insurance. It’s an extra step that can show that applicants are motivated and responsible. Let applicants know of the requirement before they sign your lease.

Generally, renters’ insurance will not cover your property. It covers tenant belongings and liability. However, it’s beneficial to you in case of a catastrophe. You don’t want to be responsible for reimbursing tenants.

Have a Clear Lease

Having a clear lease will benefit you and your tenants. Make sure you have terms and conditions that leave no room for interpretation. You want tenants to know your policies and what would lead to an eviction.

Be mindful of where you get your lease. You can find templates online or write one yourself. However, you’ll get the most protection by allowing an attorney to write or critique your document.

When it comes to selecting tenants, never settle. Follow a well-laid plan for screening your tenants to make the most of your investment property.

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Ken

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