The most important decision you make that will determine the success or failure of your rental is the person you put in the property. A bad tenant can potentially cause years of stress, headache, and financial loss, while a great tenant can provide years of security, peace, and prosperity. Don’t underestimate the importance of renting to only the best tenants. Here’s what you should be looking for.
Can They Afford the Rent Payment?
The first and foremost quality of a good tenant is their being financially responsible and their ability to afford the rent. Without proper payment, the landlord will be forced to evict and be faced with potentially thousands of dollars’ worth of legal fees, lost rent, and damages. Most landlords require that a tenant’s (documentable) income equal at least three times the monthly rent.
Will They Pay on Time?
While some landlords look at late rent as a benefit because of the extra income from the late fee, a late-paying tenant is more likely to stop paying altogether. The stress involved when the rent doesn’t come in is not a pleasant experience and can be avoided by only renting to tenants who have a solid history of paying on time.
How is Their Hygiene?
No tenant stays forever—and when they leave, you want the property back in good condition. As such, it is important that the tenant’s day-to-day living be clean and orderly. They must take good care of the property you have entrusted with them.
How Much Stress Will They Cause You?
The final quality of a great tenant is something we call their “stress quotient,” or in other words, the amount of stress a tenant will cause you, the landlord. Some tenants are very high maintenance and constantly demand time and attention. Others simply ignore the terms in their lease and need constant babysitting, reprimanding, and discipline (late fees, notices, phone calls, etc.). This type of tenant will only be a thorn in your side.