Steps to Finding a Qualified Renter For Your Investment Property or Home | Finding Tenants

My wife and I have had rental properties for 20 years and have yet to go to small claims court, and/or go through the eviction process. We currently have several rental properties and will have a vacancy in October. Since we are in the process of finding a qualified tenant, I thought I would pass along our tips we employ in finding a qualified renter.

First, you need a bunch of folks interested. It is a numbers game. The more prospects you have to pick from, the better your chances are in finding a great tenant. We do this by renting our properties for slightly below market value (creating a demand), and second, by being the first ad in the section we are advertising in. All classified sections have their own criteria, and in our local classified section, the sorting order is by numerical order. We simply start our ad with "1000 square feet (if the unit is that large)," or "1 bath, 2 bedroom," etc. Whatever it takes to be the first ad, as the first ad receives the lion's share of the phone calls.

Once the prospects start calling, answer the phone. This sounds simple, but it's true, if you do not answer the phone, more than likely the person calling will go to the next advertisement. If you cannot answer the phone, then call back ASAP.

After you have prescreened the potential tenant over the phone, then set an appointment to show your perfect place. I say "perfect" because you have went through your available unit and made sure everything is looking freshly painted, immaculately clean, maintenance issues repaired, there is curb appeal, etc.

Once you and your prospective tenant agree that each party stands to gain from renting your unit, do a professional screening. We have our prospects pay the fee the screening company charges, with the promise the fee will be refunded if the application is accepted. This screening step is a must. I cannot tell you how many times we "felt good" about a potential renter, only to find the tenant is unemployed, credit is horrible, had evictions on the books, etc. Also, by having the client pay for the report, the client may mysteriously opt to not rent from you. Usually because the client knows they will be 'found out.'

Lastly, have a rental agreement that is iron-clad. We use the standard rental agreement form, but have an addendum we write up to discuss issues not covered in the standard rental agreement, or clarifies a point made in the standard rental agreement. One such point is the rent due date. Most agreements state rent is due on date x, and if not paid 5 days later, a fee of x amount is due. We take that a step further and note the rent is late after the due date, and a fee is charged after 5 days of grace. We have most tenants paying rent by the due date (to avoid being 'late') rather than the fee date. In other words, if your rents are due on the 1st, but a late fee is charged after the 5th, you'll have tenants always paying rent on the 5th.

One point I need to add, is the taking care of your existing tenants aspect. Once we have a good tenant in, we serve our tenants humbly and graciously. Whenever they call, we take care of their requests. Very seldom do we say no. By taking care of your existing tenants, your present tenants will find new tenants for you. Often times, we do not need to advertise our properties, as our existing tenants find new renters for us.

These property management tips are from Joe and Colleen Lane of The Lane Real Estate Team. We represent buyers and sellers in all aspects of the Tri City Wa Real Estate community. Please call or email us with real estate investment questions, and/or property management inquiries.

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