Selecting a suitable tenant is the key to the success of your rental portfolio. Using a rental agent is often the safest and most efficient way of ensuring that you select the right tenant. Should you prefer to do it alone, below are the steps to ensure you select the right tenant:
The initial step that you should take before advertising the rental property is determining the conditions of the rental agreement, specifically with regards to issues such as pets and whether or not the tenant is a smoker.
Clearly stipulate in your advertisement that each tenant is vetted before any rental agreement is concluded. This will have a significant impact on the number of potential tenants who decide to view the property, which can save time and ensure the most suitable fit.
Narrow down the selection further by requesting that each potential tenant fills out a detailed application form when applying. Request information such as their employment details and contactable references. Tenants can also be asked to provide supporting documents which would include a copy of their identity document and a salary slip to verify employment and affordability.
Once the application form with the attached supporting documents have been received, proceed with a credit check and criminal record check on the applicant and contact the references provided by the tenant to verify the application.
After a suitable tenant is selected, it is imperative that a comprehensive and legallysound lease agreement is drawn up, which stipulates all necessary conditions in detail. The terms of the agreement must be agreed upon and signed by both parties.