Finding the Perfect Fit: A Landlord’s Guide to Selecting Suitable Tenant

09 October 2024

Even if your rental property isn’t the lifeblood of your income, it’s likely a big part of it. With that in mind, you need tenants who will take care of it, pay their rent on time, and report maintenance needs in a timely manner. But how can you be considerably certain that they meet these criteria?

In this article, we will provide a short guide for choosing the best tenants. Whether you’re a first-time landlord and just purchased your first apartment complex or you’ve been at this for a while, there are likely some aspects you haven’t thought of.

But first, Whats a tenant?

A tenant is a person or an entity who temporarily inhabits another person’s (known as the landlord) property in exchange for an agreed-upon sum of money (rent). There are different types of tenants, such as:

Residential Tenants: Individuals or families renting a home or apartment for living purposes.
Commercial Tenants: Businesses that lease office space, retail stores, or other commercial properties.
Industrial Tenants: Companies that rent warehouses, factories, or other industrial spaces.

Here are some other key points you should know about tenants.

Rental Agreement

Tenants typically enter into a rental agreement or lease with the landlord. The terms of use of the tenancy, including the duration of stay or possession, rent amount, and main responsibilities of both parties, are mentioned in this piece of document.

Security Deposit

Tenants often pay a security deposit at the start of the tenancy. The landlord keeps this deposit and uses it to pay for any damages to the rental or unpaid rent when the tenant moves out.

Lease Duration

Tenancies can be short-term (month-to-month) or long-term (typically one year or more). The lease duration is specified in the rental agreement.

Renewal and Termination

At the end of the lease term, the tenant and landlord can agree to renew the lease, or the tenant can choose to move out. Proper notice, as specified in the lease, is usually required for termination.

Eviction

If a tenant fails to comply with the lease terms, such as not paying rent or damaging the property, the landlord may initiate eviction proceedings. However, this process must follow legal procedures to protect the tenant’s rights.

How To Choose A Tenant For Your Rental?

Now that you know who is a tenant, let us take a look at some of some of the aspects you need to keep in mind while choosing a suitable tenant for your rental:

A Major Rule

Per The Fair Housing Act, you have to remember that when it comes to purchasing, selling, renting, or financing a home, it’s illegal to discriminate based on:

Nationality
Race
Skin color
Sex
Religion

However, you’re not prohibited from basing your decision on the results of a criminal background check.

The Listing

The first thing to remember is that a great rental listing will generally pique the interest of higher-quality applicants and garner more interest overall. To make a quality listing, everyone knows you must have a title that includes the price and the number of bedrooms/bathrooms. But you need to make it stand out with something a little more catchy by highlighting a great feature of the property. Try something along the lines of:

3 bedroom/1.5 bath home with a large backyard with brand new sod, close to schools and parks

In your description, you should use positive descriptors (spacious, cozy, beautiful) to highlight the best features (en suites, fireplace, swimming pool), give details about the area (near downtown, amenities), details about the rental (pets are/aren’t allowed, deposit required, no-smoking) and how potential renters should get in touch with you.

Criteria

If you want to lessen the chances of serving an eviction notice for non-payment, property damage, or other major issues, you need to set the right criteria from the start. Two of the strongest aspects you should consider are credit score and rental history.

While you don’t want to come across as a dreadful landlord, being strict and applying your criteria fairly will help ensure that your new tenant meets the standard you desire. A good place to start is somewhere along the lines of requiring at least a 650 credit score, not having any prior evictions, bankruptcies, or a felony record, and making at least 3x the rent.

Whether you have listed your rental on Zillow, Craigslist, or other listing services, you not only need to be strict in your criteria, but you also need to prescreen them before you even set a face-to-face interview date. You should also prepare pre-screening questionnaires to efficiently determine which leads are worthwhile and which should be put in the rejected folder. However, when making your criteria list, be sure to keep the Fair Housing Act and local tenant rights laws in mind.

Final Checks

Of course, the next logical step is the interviews of potential renters, but that doesn’t mean you will make the first applicant you interview sign a lease on the spot. Take the time to check references from previous landlords, as they can often give you insight that your tenant screening report couldn’t give you. For example, they may have had a lot of neighbor complaints, or they were constantly complaining about minor issues.

Another thing you should definitely do is a quick Google search of their name. Sometimes, you can find out more this way than with a tenant report. For example, on their application, they claim they’ve worked for sixteen years as an electrician, but the career history on their LinkedIn profile doesn’t match.

Don’t be afraid to do a little sleuthing!

Best Practices To Follow While Interviewing Potential Renters

Conducting face-to-face and thorough interviews and checking references are crucial steps and will help you choose the best tenants for your rental. Here are some tips you can follow to ensure that the interview process goes smoothly.

Verify Identity: Ask for a government-issued ID to confirm the applicant’s identity. This helps prevent fraud and ensures you are dealing with the correct person.

Discuss Financial Stability: Inquire about the applicant’s income, employment status, and any other sources of income. A general rule is that the rent should not exceed 30% of their monthly income.

Understand Rental History: Ask about their previous rental experiences, including how long they stayed at each place and their reasons for leaving. This can provide insights into their reliability and stability as a tenant.

Lifestyle and Habits: Discuss their lifestyle to ensure it aligns with your property’s rules. For example, ask about pets, smoking habits, and how they maintain their living space.

In closing, to find suitable tenants, you should have strict eligibility criteria that also meet the standard of The Fair Housing Act. After shortlisting a few possible tenants, conduct a thorough background check along with a bit of investigative work to choose the best tenant for your rental.

Read More…

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

View all posts

Qualified Personal Residence Trust (Qprt)

When it comes to estate planning, a variety of tools and strategies are available to help individuals manage their assets effectively. One such tool is the Qualified Personal Residence Trust (QPRT), an advanced estate planning strategy that offers significant benefits. This article will delve into the intricacies of QPRTs, their advantages, and potential drawbacks. What Is A Qualified Personal Residence Trust? A Qualified Personal Residence Trust is a particular kind of irrevocable trust. It allows homeowners to remove the value of their primary or secondary residence from their taxable estate. This is achieved by transferring the ownership of the home into the trust for a specified term. The homeowner, or grantor, retains the right to live in the property during this term. At the end of the term, the property is transferred to the named beneficiaries. How Does A QPRT Work? The process of establishing a QPRT involves several steps. Initially, the homeowner transfers the ownership of the residence into the trust. The value of this gift is computed based on IRS applicable federal rates, which represent minimum market rates. This allows the property's gift value to be calculated at a lower rate than its fair market value, potentially reducing the gift tax liability. During the term of the QPRT, the homeowner can continue to live on the property. If the homeowner survives the term of the trust, the property is transferred to the beneficiaries, and the value of the residence is effectively removed from the homeowner's estate. This can result in substantial estate tax savings. Advantages Of A Qualified Personal Residence Trust There are several benefits associated with a QPRT: Estate Tax Reduction: By removing the value of the residence from the estate, a QPRT can significantly reduce estate taxes. Gift Tax Savings: The transfer of the residence to the trust is considered a gift. However, the value of this gift is calculated at a lower rate than the fair market value, potentially reducing the gift tax liability. Continued Use of Property: The homeowner can continue to live in the property during the term of the trust, without any change in lifestyle. Asset Protection: As an irrevocable trust, a QPRT can offer some level of protection against creditors. Potential Drawbacks Of A QPRT While a QPRT offers many advantages, it's important to consider potential drawbacks: Irrevocable: Once established, a QPRT is irrevocable. This means that it cannot be easily undone or changed. Mortality Risk: If the homeowner does not survive the term of the trust, the value of the residence may be included in the estate for tax purposes. Limited Flexibility: Once the residence is transferred to the trust, the homeowner may have limited options for selling or refinancing the property Is A QPRT Right For You? Determining whether a QPRT is the right strategy for you depends on your individual financial situation, your estate planning goals, and your life expectancy. It's crucial to seek professional advice to understand the complexities involved and ensure the trust aligns with your goals and circumstances. In Conclusion: The Power Of Planning A Qualified Personal Residence Trust can be a powerful tool in estate planning, offering potential tax savings and asset protection. However, it's not a one-size-fits-all solution. It's essential to consult with a knowledgeable estate planning attorney to determine if a QPRT is the right fit for your estate planning needs. For more information or to discuss your estate planning needs, contact Citadel Law at (800) 662-0882. Our experienced attorneys can provide personalized assistance and guide you through the complexities of estate planning, ensuring that your assets are managed and distributed in accordance with your wishes. Read Also: What are the Best Real Estate Seller Leads? The Best Strategies For Retirement Funds Distribution How Do Law Firms Help Companies With Their Real Estate Issues?

Construction Safety Systems: Promoting A Safer Industry

Safety is a critical factor in any construction site. However, some construction workers and management overlook safety until an accident happens. Working at a construction site is one of the most dangerous professions since many accidents occur, leading to injuries. Therefore, employers and professionals managing construction projects should use safety systems for ethical and financial reasons. They should also ensure that the workers understand the risks and are cautious when working in hazardous situations. This is because accidents and injuries in construction sites lead to medical bills, project delays, lost work hours, compensation lawsuits, and headaches for human resource departments. This piece highlights how construction project managers can promote safety and prevent workplace accidents. What Is Construction Site Protection? Construction site protection is nothing but keeping yourself and others from construction-associated activities like injury, disease, and even death. It is often a hazardous endeavor where site employees are exposed to potential risks. For instance, a worker is working at a height or relocating machinery which is extremely heavy. The resulting causes of a construction site fatality include electrocution, falls, and crush injuries. Common Hazards Taking Place At A Construction Site Hazards taking place at a construction site have caused deaths and injuries all across the world. When hazard identifications fail, it is either due to a lack of safety systems or improper training. Before we delve into the ways of maintaining construction-place safety, let us first discover what are the common hazards that take place in a site: Falling From Heights One of the most common fatal injuries that site workers experience is falling from height. According to HSE, 47% of employee fatalities are caused by falling from heights. Every employee who operates at height requires proper training and the right set of equipment. Although safety harnesses are important at every construction site, some do not wear them and, as a result, fall from height. Trips, Falls & Slips Another very common construction hazard is trips, slips, and falls. Construction sites usually have uneven terrain and unchanged terrain. Hence, trips, falls, and slips are no surprises at all. More than seven thousand construction workers are either injured severely or die due to a major trip or fall. It is the duty of managers and site supervisors to manage the site effectively to ensure the safe movement of workers. Tremendous Noise A lot of workers have complained about prolonged hearing problems and deafness when they work around loud and repetitive noises. They are also a dangerous distraction that distracts a worker from his job and results in accidents. A comprehensive assessment stating noise risk must be highlighted to avoid noise-related construction site hazards. Steps To Maintain Safety In A Construction Site Workplace safety is a significant consideration- irrespective of where you work. But when it comes to construction, particularly, one must always be careful. Even the smallest mistake can result in a life-altering consequence. Thinking about how to do so? Here are a set of steps that might help you: Create Awareness About Safety Hazards Ignorant workers are among the most significant dangers because they could make terrible mistakes, putting everyone at risk. Construction site managers should ensure the workers understand the possible hazards before they set foot on a construction site. Understanding the risks ensures workers stay alert to prevent and respond to accidents. Therefore, employers should use OSHA safety guidelines to equip workers with the necessary knowledge to enhance safety. Only workers or visitors aware of the dangers of a construction site should be allowed access. Quality Equipment Workers need quality equipment and a spacious workplace to perform their tasks without causing accidents. Wrong or faulty equipment increases the chances of accidents and injuries. Therefore, construction managers should pay attention to equipment maintenance schedules and provide quality safety systems. They can also seek help from Doka and other companies that provide safety systems and equipment. It is also crucial to prevent exposure-related issues such as dehydration by providing water and using personal protective equipment. Training Workers Some construction workers gain skills on the job, but safety training is best offered before accessing the site. The authorities concerned with workplace safety often publish resources to help construction companies train their workers. For example, they provide worksheets, pamphlets, training videos, and sometimes one-on-one training. Safety training is important not just for new workers but also for experienced workers. Therefore, construction firms should organize training to ensure all the workers gain or refresh their safety knowledge. The safety training can focus on simple things such as using a ladder or fall protection to ensure all the workers are well informed. Documentation Proper documentation is crucial for workplace safety. Construction sites must meet certain legal and safety standards before construction work begins. Therefore, construction firms should only commence operations with relevant licenses and documents. Contractors undertaking specific tasks such as blasting must provide relevant certification before accessing the site. Documentation protects the construction firm and helps prevent accidents and public scrutiny. Effective Communication Accidents usually happen when the workers are unaware of what to do or expect in a certain situation. However, sharing information about construction goals, objectives, and daily activities can reduce surprises or mistakes that could cause harm. Besides, the construction management should provide communication devices and tools such as headsets, walkie-talkies, and smartphones to ensure effective communication about workplace hazards. Effective communication ensures everyone is informed, enhancing operations and reducing safety risks. Supervision Construction employees should always follow the relevant safety guidelines and institute mitigation measures. However, since not all workers will follow the relevant procedures, supervision can help identify loopholes and enforce safety standards. For example, supervisors should keep tabs on all workers and ensure they have relevant safety gear. The workers should report any safety concerns to the supervisor for appropriate mitigation measures. The Bottom Line… Stay Safe! Construction companies should build quality structures while minimizing accidents, injuries, deaths, and related lawsuits. The hope of reducing accidents in construction sites lies in raising awareness, safety training, effective communication, supervision, documentation, and quality equipment. These simple things can help reduce accidents, enhance safety, and prevent legal issues associated with workplace accidents. Read Also: Senior Staircase Safety: What You Need to Know Construction Safety – What you didn’t know! Top 7 Safety Tips For Road Construction

Bridging Loans Explained

Bridging loans have become popular among borrowers for all the right reasons. With everyone talking about bridging loans, including the mainstream media, the chances are that you have already heard of these loans before. This is especially true if you are trying to move houses. However, several people do not know what a bridging loan is and how it works. Taking a bridging loan could be the best thing to do if you have found a dream house you want to acquire before someone else buys it, and you are yet to find a buyer for your existing home, which still has a mortgage. A bridging loan will give you the funds you need to buy the second house as you wait to sell the current one. Even so, there is so much more to bridging loans than you might imagine. In this guide, we will discuss everything about bridging loans from the basics, pros, and cons. keep reading to discover everything you need to know about bridging loans. So what exactly is a Bridging Loan? Simply put, a bridging loan is a short-term loan taken on top of the current home loan. As the name suggests, a bridging loan is usually taken when you need to buy a new house immediately before selling your existing home. When you take this loan, you will be paying interest on two loans. To put things into perspective, bridging loans are a form of interest-only loans. The value of your existing property will determine the value of the loan. It is also vital to note that these loans have limited terms and contain special concerns. Depending on the lender, the amount and terms of the loan will vary. You can view this bridging loan calculator first before you apply for the loan to get a glimpse of your financial responsibilities. The structure of bridging loans differs from one private money lender to another. Some private lending providers will require you to continue serving your loan until you settle in your new property. The private finance providers will the interest of your two loans together during the loan duration. Once you find a buyer for your second property, the mortgage will be discharged. You will then start paying the principal and interest of your current loan. On the other hand, other private lending providers will ask you to service both loans after taking a new one. After the sale of your home, the initial mortgage will be discharged, while the bridging loan might be converted into the home of your choice for your new property. When taking a bridging loan, it would help to think about compounding interest because you will be charged for both loans. Always keep in mind that you will end up paying more than you should if you fail to find a buyer for your house quickly. Bridging loan interests are calculated daily and charged monthly. Another key element you should have in mind is the duration of the bridging loan. These loans usually last around six months to 12 months, depending on the private finance providers and your preferences. Your loan length will be six months if you buy an existing home and 12 months for a new one. What are the Pros and Cons of a Bridging Loan? Now that you are aware of what a bridging loan is and how it functions, it is time to look at the pros and cons. Understanding the benefits of these loans and the challenges you are likely to encounter when you take a bridge loan will help you make the right decisions. Here are the pros and cons of a bridging loan: The Benefits of a Bridging Loan: Bridging loans have so much to offer. It is crucial to understand what you should expect with this type of loan to get the best options. Here are the pros of bridging loans: More Convenience: Do you want to buy your dream home quickly? A bridging loan will allow you to do just that even if you have not sold your existing house just yet. Flexible Repayments: Depending on your bridging loan structure, you will only have to service your existing home loan finance when you take a bridging loan. Avoid Further Expenses: You will not have to rent when you take a bridging loan. It will allow you to move even if you do not have a buyer for your house. Considerations of a Bridging Loan: Like is the case with any other type of loan, bridging loans also have their fair share of cons. For instance, you will be forced to pay more if you fail to sell your house as soon as possible. Choosing the Best Bridging Loans for Your Needs: Bridging loans are categorized as open bridging loans and closed bridging loans. Closed bridging loans have a pre-determined settlement date while open bridging loans do not have an agreed settlement date. When looking for a bridging loan, it will help to consider the duration, interest rates, and loan structure. It would also help to compare alternative loans before making the final decision. Above all, it is essential to find the right private lending company. Fortunately, you can use an easy-to-use online platform such as ADS.finance to find the best private finance option near you. Read Also: 5 Best Things an Experienced Real Estate Agent can do You Need to Know the Pros and Cons of a New Career in Real Estate 7 Tips To Purchase A Prime Real Estate Property

Finding the Perfect Fit: A Landlord’s Guide to Selecting Suitable Tenant