For Business Success: 3 Signs of a Good Potential Tenant

For Business Success: 3 Signs of a Good Potential Tenant

Good tenants are the key to a smooth-sailing, profitable real estate business. Some believe though that you can never know what kind of tenant you have until they move into your unit. Not true.

There are a lot of things you can check to see if the one applying for your vacant unit is a good tenant. Here are the signs you should look out for:

1. Stable Job

This is fairly obvious. A tenant who has a stable job has a steady source of income, helping them pay rental fees on time. But this factor goes beyond financial security.

Someone who’s able to hold a stable job for a long time means they’re responsible. They understand well that they have duties to fulfill as a tenant, and that complying to policies is a must, precisely because this is the same culture in the workplace.

So, when interviewing tenants, ask them where they work and how long they’ve been working there. Check with their employers the validity of their statements. Jacksonville, FL, property managers can help you with these tenant check duties.

2. Good Credit Score

This also tells you a great deal about the person’s sense of responsibility. As you know, credit scores depend on the payment history, the amount a person owes, new credit acquired, and types of credit cards.

So, if an applicant has a great credit score, then it’s safe to assume that they’re financially responsible. You could tell an applicant that there’s a charge for the credit check. Usually, applicants who have a bad credit score wouldn’t agree to pay for a fee.

3. Concrete Goals

A lot of landlords forget to check this in the interview process, feeling that it’s too personal. But asking the potential tenant where they see themselves in the next years can give you a hint on their worldview and traits.

In general, people who won’t have an answer to that tend to be impulsive in their decisions and may not benefit your business. And people who do have an answer to that will vary — it can be career success, raising a family and so on — but all these can give you an idea how responsible they are.

Always ask prospective renters about how they envision the future, particularly how long they plan to stay. This will help you arrange a plan that’s both beneficial for you and your tenant.

Good tenants make good business. Look for these signs so you can fill your vacant units with the good ones.