Characteristics of a high quality tenant

The tenants you choose to live in your rental properties determine whether you make or lose money with your investment. This could be the single most important decision you’ll make concerning this venture.

As a landlord, there will be times when you regret choosing the tenants you chose. Some renters never pay rent on time, which can lead to lots of stress and wasted time, possible eviction proceedings, and a loss of revenue.

Then there are those that do not respect your property and use it as a cat refuge or drug house. Or maybe they neglect to tell you about some damage that could have been an easy fix, but by the time you find out, it’s a major, expensive problem.

When you get into the real estate investment game, your goal is to make money. The only way you can do that is by renting to people who can and will pay rent on time and who will respect your property as you do. How do you find renters who fit this bill? The best way is by identifying the five traits of a high-quality tenant.

1. A High-Quality Tenant Is Responsible

Responsible people do the right thing all the time. As tenants, they tend to pay rent on time, and they take pride in their living space. When you rent to a responsible person, you can rest easy knowing you’ll make a profit every month and that they will take good care of the property. There are several ways you can find out if a prospective tenant is responsible or not: check their credit report; talk to their previous landlords; look for good communication skills and take note of their ability to keep appointments.

 2. A High-Quality Tenant Has The Ability To Pay On Time

A high-quality renter will be able to pay the rent on time every month. You’ll know a potential renter has this ability by checking his or her employment status and earnings. Ideally, only 30 percent of their earnings should go toward rent each month. You should also check their credit report to see how well they’ve paid their debt off in the past.

3. A High-Quality Tenant Values Honesty

Honest people make great tenants. This is because they cannot lie easily. If a tenant lies on their application (it happens a lot), you probably don’t want to rent to them. If they don’t tell the truth about a prior eviction or the loss of a job, they are more likely to be dishonest with you. Be sure to check everything on their applications including employment status, and never take anyone’s word as truth until you’ve proven it so.

4. A High-Quality Tenant Is Clean

This quality is a little harder to judge, but there are indicators that a prospective tenant may not keep your rental clean. For instance, their appearance can shed some light on how well they keep their living space organized and tidy. If their clothes look like they just pulled them out of the hamper instead of the closet, there’s reason to suspect they are messy.

Another indicator is a person’s ability to arrive on time to appointments. If you schedule a showing, and the person arrives late without a valid excuse or apologetic nature, there’s a good chance he or she won’t care about keeping your property nice either.

5. A High-Quality Tenant Is Stable

If the person you’re interviewing for your rental has a job and family in the area, it’s a good indication that they are stable and will remain in the property for a year or more. You can encourage a high-quality tenant to sign again once their lease is up by offering incentives like not raising the rent or upgrading an old appliance, or having the interior of the property freshly painted.

Typically speaking, investors who struggle to make a profit are usually renting to poor tenants. If this sounds familiar, you may want to take another look at the people you’re renting to. If they don’t exhibit the above traits of a high-quality tenant, you may want to think about making some changes.