2. Rental properties can prove to be an excellent way to procure reliable and profitable streams of income. This is why so many people look towards renting their property. However, the ability to succeed with rental income will rest greatly on finding the proper tenant. If you rent to the wrong tenant – one that does not respect the property or his/her financial obligations – you can undermine all the profitability of the venture. Thankfully, there are a few basic steps that you can follow to be sure you are renting to the right tenant. http://blog.wholesalerealestatesource.com
3. First and foremost, you need to be sure that the tenant can afford the monthly rent. This means you need to ascertain the income or net worth of the person you would be renting to. To figure this out, you will need to be informed of recent employment history and salary level. Proof of this comes in the form of being provided with recent pay stubs. Asking to see a prior year’s tax return can be advisable under certain circumstances such as when dealing with a self-employed individual. http://blog.wholesalerealestatesource.com
4. Examining a person’s credit score is also helpful since it shows whether or not a person is reliable with paying obligations. Please note: just because a person has bad credit does not automatically mean the person will be a bad tenant. But, if the credit report shows negative information, you may wish to discuss the matter with the person and make a judgment call. References are certainly helpful as well. Specifically, you will want to seek out references from prior landlords. When the previous landlord provides glowing reviews of the potential renter, the odds are strong that you would be leasing/renting to a qualified tenant. http://blog.wholesalerealestatesource.com
5. While some may overlook performing a criminal background check is a little much, the fact remains virtually all diligent landlords will perform such a search. This is certainly not to say that all previously convicted felons will be a problem tenant, but if the individual has been convicted of a felony, this is most definitely information you will want to know. Some may be saying that all this information is well and good, but how is it possible to perform all these checks? A person that may be renting out a duplex for the first time probably does not have the experience to handle all of these processes. This does not necessarily be a major stumbling block because there are solutions to such a lack of experience. Namely, you can hire a service to handle such tasks. http://blog.wholesalerealestatesource.com
6. A property management service can definitely perform all the required tasks needed to assure the person renting the property is effectively qualified. In addition to qualifying the tenant, such a service can also collect rent. It could even handle the advertising of the property to see that only highly qualified tenants will be notified of the ads. Which brings us to our next point…? When you do place ads for the property, stick with those venues that require subscriptions. In other words, rather than placing an ad on a site that is free and publicly displayed, place the ad on a site that charges for access. People that pay for access will generally be more serious and better quality candidate. This is true even if the monthly fee is a nominal one. http://blog.wholesalerealestatesource.com
7. Keep in mind this will also depend on the quality of property and neighborhood that you are dealing in. This may not always be the case if you are dealing in lower end properties as quality of tenant may not utilize the internet or pay for those types of services. So use good judgments. Any risk associated with purchasing real estate and renting homes in markets such as Detroit Michigan, Cleveland OH, or Memphis TN will be mitigated by potential buyers and tenants. Most of the properties you should buy will just need basic clean-up and minor repairs/remodeling to find new tenants and owners. http://blog.wholesalerealestatesource.com
