Investing in real estate is somewhat of a gamble, given that there’s no guarantee of occupation.
You might have the most stylish, modern, and structurally-sound apartment, but you could still have trouble finding tenants. In fact, finding tenants for your rental property is one of the most difficult aspects of investing in real estate.
If you want to protect your investment and retain your profit for House with tenants, you need to know how to good find a tenant. The emphasis here is on the word “good.” Renting your property to an unqualified tenant will almost always work to your disadvantage.
It’s up to you to use your time and resources to find a tenant that’s worthy of your rental property. If you don’t know how-to, we’re here to show you. Today, we’ll be looking at how to find a tenant for your house or flat.
Understand Landlord and Tenant Laws
Before you go out looking for a tenant, it’s important to first have a firm understanding of federal and state laws regarding tenants and landlords. Pay special attention to what counts as discrimination against qualified tenants. The Fair Housing Act clearly spells out what tenant discrimination is and what it constitutes.
Illegal discrimination of potential tenants could land you into some serious legal trouble. However, it’s worth noting that some types of property can be exempt from anti-discrimination laws. If you’re having trouble interpreting these laws, you can get help from a qualified lawyer.
To make things simpler, discriminating potential tenants based on race, gender, religion, and other factors is illegal. You risk hefty fines of up to $150,000 if you breach the Fair Housing Act.
Advertise in the Right Places
You need to advertise in the right places to land the right tenants. The best way to advertise your rental property is on real estate listing sites like Rental.com or use tenant finding services. These sites give you a platform to show potential tenants what you have to offer.
The sites also allow tenants to check out apartments for rent and pick those that fit their fancy. Of course, realtor and listing sites aren’t the only way to advertise your property. There are several methods you could consider for your advertising, including:
- Social media
- Targeted ads (PPC and PPV ads)
- Affiliate marketing
Our emphasis is on digital advertising techniques because they are a much more effective method of advertising your property. When it comes to how to find a tenant for your apartment, flyers and banners might not do you much good in the digital age.
Clean Your House Thoroughly
Make sure your house is sparkling clean and ready for viewing at any given time. A dirty and untidy house is an immediate turn-off to potential clients. As such, make sure you give the property a thorough cleaning in anticipation of tenant visits.
While you’re at it, you can also make minor repairs to ensure the house is in tip-top shape. These repairs might be costly, but they’re definitely worth it. Plus, you’ll end up making these repairs later on anyway.
For your house cleaning, it’s a good idea to outsource to a professional home cleaning service. These services guarantee diligent cleaning that captures all the nooks and crannies of your property. A clean house attracts the right tenants and paints the right picture for prospective tenants.
Don’t Conduct Interviews
Interviews might seem a crucial part of the tenant screening process, but it’s not really necessary. While they seem like a good way to learn more about your tenant, they’re not as effective as you’d think.
The way a person dresses or talks says nothing about their “goodness” as a tenant. In fact, some potential tenants might put on a show just to dupe you during the interview. What’s more, interviews open you up to Fair Housing lawsuits that may lead to hefty fines.
Resist the temptation to ask for interviews from potential tenants. The thought of an interview may scare off some of your best potential tenants. Plus, interviews reveal nothing about how a person will perform in a lease agreement.
Perform Background Checks
While interviews are a definite no-no, you can and should perform background checks on the applicants. Background checks are a window into the applicants’ lives and tell you whether they’re a good fit for your property.
From the background checks, you can find information on applicants’ credit histories, criminal records, employment history, and much more.
You can do a background check on your applicants using sites like credit investigation services and others. Do a thorough background check before accepting any applicant as a tenant. For instance, if you want to rent apartment in Sydney it’s useful to run these kinds of background checks on landlords as well.
Hire a Realtor
You don’t have to go through all the trouble of finding tenants on your own. If you need to take a load off, consider hiring a reputable realtor. You can leverage the skill and experience of realtors to find suitable tenants for your property.
A qualified realtor will know how to find tenants for your flat, apartment, or stand-alone house. Unlike tenants, it’s okay to interview your realtors to find the best one for the job. Hire a realtor to find tenants while you concentrate on managing your property and expanding your real estate portfolio.
Create a Strong Lease Agreement
A lease agreement spells out the terms and conditions for living in your property. This document stipulates all the tenancy rules, rent due dates, and penalties. Ensure you create a document that captures all aspects of renting out your property.
Hire an experienced lawyer to help you create a solid lease agreement for your tenants.
Don’t Settle for Less
There’s no point in settling for a tenant that’s not worthy of occupying your property. Only accept tenants that you can trust and are likely to abide by the lease agreement.
As long as you adhere to the Fair Housing Act, don’t settle for untrustworthy tenants.
How to Find a Tenant Made Easy
Now that you know how to find a tenant, it’s up to you to find the best one for your property.
Remember, you can always hire tenant-finding services to give you a much-needed hand if necessary. Finding great tenants is a breeze if you follow our advice.
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