One of the biggest property management challenges you’ll face as a homeowner is to find the best tenants. Whether you own one or more properties, you need to have reliable tenants that pay on time, follow the rules, and take care of the property. So how do you go about finding the best tenants? Here are some tips from your Calgary property management company that you can use to enhance your results:
7 Tips To Finding The Best Tenant For Your Property Management
Tip #1: Look for Financial Credibility
First, you want to make sure that the potential tenant is employed and has a long history of employment. You want to look for things like proof of employment, duration of work, pay stubs reaching three or more months back, and an annual income that is at least 30 to 40 times the monthly rental fee. This will ensure that you find a tenant that has the financial security to make payments without any problems.
If you want to avoid a problematic tenant, you can ask for the applicant to provide their bank account statement. You want to see that the applicant has three to six months worth of savings to pay for the rent.
Tip #2: Require References
It’s widespread to request applicants to bring in references. You want to make sure that you get a reference from their place of employment as well as the last property owner, or the Calgary property management company, the applicants rented with. The reason why you want two different references is that the previous property owner may be trying to get rid of the tenant and write a reference to get rid of him or her. A second reference from the employer shows that the tenant can be responsible.
Tip #3: Ask for the Applicant’s Credit Report
While the financial and employment status of the applicant is more important, you still want to ask for a credit report. The reason why is because it shows that the tenant has a history of paying their bills on time. The credit report will also show how much debt they’re carrying. You want to try to avoid tenants that are carrying a lot of debt as it could turn into a potential problem later.
Tip #4: Perform a Criminal Background Check
Running a criminal background check on potential applicants is a no-brainer. You want to avoid tenants that will bring trouble to your property, neighbors, roommates, and neighborhood. To do this, you will need the applicant to submit two forms of valid IDs for verification. Make sure that you check multiple databases from sexual offender databases, federal court records, state criminal records, and more.
Tip #5: Get Serious About Your Marketing
Don’t expect your rental listing to generate hundreds of listings with one Craigslist ad. Calgary property management is far more challenging than that. Look for both local and national listing sites that allow you to either list your property for free or pay a fee for a premium ad/listing. You’re going to be competing against hundreds of listings, so you want to get as much exposure as possible. Remember, the longer your property stays vacant, the more income you will lose out on.
Tip #6: Consider Getting Help from Professionals
Have you tried getting tenants only to receive low-quality applicants? Are you having problems getting exposure for your property? If so, you may want to work with a professional Calgary property management to help you. While your income will diminish, these companies will take care of everything from handling repairs, marketing your listing, overlooking your property regularly, and more.
Tip #7: Think About Your Target Audience
Sometimes the smart thing to do is to think about the type of tenant you want to bring in. For example, a tenant that is relocating for work, a young couple that are both employed, a family that’s switching neighborhoods, and a young single professional are all vast audiences you can target. Once you have something in mind, you can reach out to your network to see if anybody fits the criteria.
Following these tips will increase your chances of finding the best tenants significantly. Just remember that you still have to manage the property after you bring in the tenants. If you’re juggling multiple properties or you’re out of town, it may be smart to work with a professional company.
Mountain Park Real Estate is equipped to help you with all of your real estate and property management needs. If you’re looking to buy, sell, rent or hire a property manager, trust the experts at Mountain Park Real Estate in Calgary and you’ll receive the best possible service. Visit our website at mtnparkpropertymanagement.ca or contact them directly by emailing: [email protected] or calling: (403)-984-4404.