When it comes to choosing the right tenants for your investment property, you won’t always get it perfectly right. However, there are two important parts of selecting the most appropriate tenants, and that involves both gathering information, and using your instincts.
Information is power, of course, so make sure you get your tenants to complete an application form, or tell you in an interview, about their basic rental and employment history. Check in with their employer to make sure they really work there, and call their previous landlord to make sure they usually pay the rent regularly.
Of course, there are ways for tenants to get around this – if they’ve been making late payments for rent, then they’re unlikely to give you the contact details for that landlord, and it’s not so easy for you to know if they’re telling the truth when they say they’ve been staying with a friend for a few months or living with their parents – both of whom aren’t going to tell you otherwise. That’s why using your instinct is also important. Do you get a good impression of the prospective tenants? Are they professional in their communication with you? Do they dress in a way that fits their occupation? Using your instincts is just as important as gathering the facts, and you should combine them to decide on the best tenants for your property.