These days, many homeowners are turning into landlords. Whether you have relocated and are still waiting for your previous home to sell or whether you are trying to increase income by renting a vacation or second home, you might suddenly find yourself in need of a renter.
Of course, we’ve all heard nightmare stories about bad tenants destroying properties and causing prolonged evictions. As a Member of the Top 5 in Real Estate Network®, I’ve learned of a few simple guidelines for finding serious renters and thereby, preventing most bad occupancies:
1. Location -
There is no question that the more desirable a neighborhood, the lower the risks of having a bad resident apply. It is also worth noting that the higher the rent, the lower the risk.
2. Condition -
A very vital but controllable influence for attracting desirable residents is the home's condition. The formula is simple. Make it look like everything was just completely redone. Exterior property condition is very important as well.
3. Pricing -
Don’t be afraid to price a property slightly below what the market dictates. For every 2½ weeks a vacancy sits on the market, the annual rent could have been lowered by 5%.
4. Signage -
A prospect calling from a yard sign should be treated as a serious lead. They have seen the exterior of the property and know its precise location.
5. Response Time -
Rapid response time can make all the difference. Use cell phones or text messaging to allow prospects to quickly reach someone who can show the property or answer any questions.
6. Screening -
Despite all of the above, screening is still vital. Be sure to adhere to a written tenant selection plan that is in compliance with all Federal, State and Local Fair Housing Laws and the Federal Fair Credit Reporting Act.
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