06/12/2021
Day 2 of the best tips for landlords! come back every day for the next 6 days for the best advice if your looking into becoming a landlord.
2. Be strict with your screening process
One of the most challenging parts of being a landlord is choosing a quality tenant. Screening tenants is hard. If your rental is priced competitively in the market and in good condition, it's likely you will receive a lot of interest from prospective tenants. A well-thought-out screening process with established requirements for tenants will help w**d out tenants who won't qualify because of eviction history, low income, or other factors like owning a pet.
From there, have the tenant complete a written rental application. Confirm their rental history, and review their income. Many landlords follow the "3x rent per month rule," which means the tenant must make at least three times the rental rate each month. Running a credit check and background check is standard in rental real estate, but it's not the only thing that matters.
Likewise, it's a red flag for renters if your screening process is not thorough. You do not want to give off the impression that you'll let anyone live in this building, which may cause tenant issues.