How to Select the Right Tenant for Your Rental Property

Congratulations, you bought your first rental property and now you are ready to find a tenant.The landlord tenant relationship is the key to your success in the rental market. Here are a fewtips on how to get the best tenant for your rental property.

There are two main reasons to engage a real estate agent to help in your search for a tenant.The first being an agent will be able to post the rental property on the MLS system which will bewide reaching and, more importantly, it will generate serious candidates. The second is theirability to ensure your tenant is qualified by completing the proper credit and reference checks.For their services you should be charged one months rent and if you are asked for more, findyourself a new agent!

When you are purchasing you property there should have been some thought that went into thetype of tenant you were looking for but if not, it can be done at this stage. The three maincategories are students, young professionals and families. Each of these categories will garnerdifferent expectations when it comes to property damages and the rent amounts. There aremerits to renting to each group but it is important to have your expectations set before you beginyour search so you are happy with the results.

It is important to understand the demands of your tenant, for example some tenants might wantyou to paint the unit before they move in and this is a fairly common and acceptable request.Some might request carpets be replaced, extra storage space or use of a driveway/parking spotthat isn’t intended for the rental unit. When these types of demands start to arise it is advisableto continue your search. Generally speaking the demands of a tenant do not diminish as timegoes on so you want to ensure you are engaging into a contract with a reasonable tenant.

One of the best methods for collecting rent is having the tenant give you post dated cheques fora year. Having post dated cheques ensures the rent is paid on time which is key to your successand will minimize stress at the end of the month. Another popular and efficient method ofpayment is e-transfer which works well if your tenant is reliable – perhaps not the best methodfor student rentals. There are other direct deposit methods of payment that are designed fortenants/landlords but they have a monthly deposit fee and therefore are not recommended untilyou own multiple rental properties.