The horror stories of bad tenants are endless. From tenants stealing copper pipes to renters refusing to leave or pay, the type of tenant can make or break an investment property.
It’s in the best interest of the investor to find quality tenants who will value the home, pay on time, and communicate any issues in a timely manner. This way, necessary fixes do not sit idly and worsen over time, which costs more for the investor. For instance, a minor water leak can easily be patched, but if it sits over time it turns into mold; a much more costly repair. And all repairs eat into your yield.
Another issue that takes away from your returns and is a much larger issue that many landlords face is getting tenants to pay or vacate the premises. Months without receiving rent can really hurt your bottomline. And you may need to pay for lawyer fees and other costs on top of that to get the tenants out of your investment property.
Therefore, to ensure your investment property is providing you with the ROI you are aiming for, you need to find good tenants.
So how do you find quality tenants?
To find good renters, you need to have a thorough screening process in place. A screening will weed out bad renters and make high-quality renters stand out. Our Asset Management team at HomeUnion uses strict guidelines when it comes to resident screening for our investors. The team runs a thorough credit and background check on all applicants, verifies wages with a paycheck stub or tax return, and makes all applicants fill out a detailed application.
We also vet applicants on a number of criteria to ensure we are getting good tenants for our investors. The criteria we look for is: ideal credit score, no open or recent bankruptcies, no landlord collections, no outstanding debt over $5000 (education and medical excluded), and gross income must be 2.7 times the monthly rent. In addition, we follow the Fair Housing Guidelines and screen applicants on a first-come, first-serve basis.
Tenant Screening is Only One Part of Owning a Rental Property
Tenant screening is only one part of the larger picture of owning and managing a rental property. There are other equally time-consuming tasks that come along with investing in real estate like identifying a market to invest in, finding an investment property, acquisition, renovation, and then finding tenants. This can be a huge headache for you.
That’s why HomeUnion developed an all-in-one solution for you to invest in real estate hands-free. We do all the heavy lifting for you – we take care of finding, acquiring, and managing real estate assets, so you can sit back and relax, knowing your investments are in good hands. If you would like to find out more on how you can purchase and manage an investment property passively, schedule a free, non-obligatory consultation with one of our Solutions Manager who will answer all your questions and create a custom real estate portfolio for you.