Top 3 Things Every Landlord Should Know Before Renting Out Property
Are you a property owner or manager considering renting out your property? If so, it’s essential to ensure you know these three critical things about potential tenants. This will save you significant time, stress, and money down the road.
1. Confirm the Tenant’s Income
First on the list is income verification. Renting your property to a tenant who struggles to pay the rent each month is a recipe for problems. As a landlord, your primary aim is to secure a tenant who can comfortably afford the rent.
A useful guideline I recommend is the ‘3x rule.’ Essentially, this means the prospective tenant’s monthly income should be at least three times the monthly rent. This rule helps to ensure that the tenant will not find it burdensome to meet their monthly rent obligations.
2. Assess Job Stability
Job stability is the next factor on our checklist. Tenants who’ve just started a new job or who frequently switch jobs can be a potential risk. You may find yourself facing the daunting task of finding a new tenant or worse, dealing with eviction proceedings only a few months down the line.
When reviewing job history, consider how long they’ve held their current job and the nature of their work. Transient or temporary jobs might signal instability.
3. Check Landlord References
Last but certainly not least, always check landlord references. A common mistake many landlords make is only reaching out to the current landlord. However, it’s worth noting that a current landlord might be motivated to paint an inaccurate picture if they are trying to get rid of a difficult tenant.
To get a more accurate representation, try to seek references from 2-3 previous landlords. This can provide invaluable insights into the tenant’s long-term behavior and reliability.
In conclusion, before you hand over those keys, remember these three must-haves: sufficient income, job stability, and reliable landlord references. These essential checks can save you a lot of trouble and are key to finding a reliable, long-term tenant.
Now, over to my fellow property owners and managers. What additional criteria do you consider when screening potential tenants? Let’s continue this discussion in the comments below.
That’s all for today’s blog post. If you found this information useful, please share it with other landlords who might benefit. Remember, an informed landlord is a successful landlord. Here’s to your continued success in property management!