The tenants you place in your Rexburg rental property have a direct impact on the money you make with that property. Highly qualified tenants will pay rent on time and follow the terms of their lease agreements. They’ll take good care of your property and let you know promptly when something isn’t working. You can count on good tenants to renew their lease agreements, communicate openly, and be good neighbors. All of this means more money for you.
Bad tenants, on the other hand, will be a financial drain. You’ll spend time and money chasing down late rent, threatening eviction, and paying to repair excessive wear and tear after they move out. You may have to deal with unreported maintenance issues and lease violations.
All of this demonstrates the importance of good tenant screening.
On-Time Rental Payments
When you’re screening tenants, always check credit. You’re looking for a demonstrated history that housing-related bills have been paid on time in the past. While an overwhelming amount of medical debt may not be a reason to be concerned, you don’t want to see overdue and unpaid utility bills or money owed to former landlords and Rexburg property management companies.
Talk to landlord references, if you can. Ask if rent was paid on time every month. Find out if there was ever a notice served demanding that the tenant pay rent or move out. Check for past evictions.
A tenant who pays rent on time contributes to your own cash flow and consistency. You won’t have to worry about your own financial stress when you know you can count on the rent arriving on time every month. You also won’t have to spend time and money trying to collect an overdue debt. All of this leads to better ROI.
Protecting the Condition of Your Rexburg Rental Property
When you’re screening tenants and checking rental history, look for evidence that they cared for prior homes they rented. Ask landlord references if the entire security deposit was returned to the tenant. Find out if there was any deferred or unreported maintenance after they moved out.
Well-maintained homes rent faster and for more money. You want to make sure you won’t have to spend thousands of dollars and several months preparing to re-rent the property after a tenant moves out.
Avoiding Turnover and Vacancy
Most investors understand that vacancy is one of the most expensive parts of renting out a property. When rent isn’t coming in, your ROI is sinking. Add to that the costs you must incur on a vacant property, such as maintenance and security and cleaning and utilities – you see how you can quickly begin to drain money.
When you’re screening for tenants, look for residents who have a history of staying in place for at least a few years. You don’t want to rent to tenants who tend to move every six months or who have broken lease agreements previously. Consistency leads to better ROI. You want a tenant who will renew their lease agreement year after year. It earns you more.
There are several things to look for when you’re screening tenants to ensure your Rexburg rental property is in good hands and earning you money. If you’d like some help, please contact us at Jacob Grant Property Management.