Finding the perfect tenant

So you have decided to rent your property to tenants, or have been doing it for some time. One of the struggles of property owners is finding good tenants. The definition of perfect tenant is subjective because some people want to rent out to families while others are fine with timely payments and nothing more.

No matter what your requirements are, finding the right tenants is never easy.

We have compiled a list of tips and strategies to pick and manage tenants. By following these simple steps, you can find and keep tenants who don't give you any trouble.

1. Create a profile of your ideal tenant

Before you go looking for tenants, you must have an idea of what you're looking for. Ask yourself the following questions:

• What type of tenants are available in your property’s area?

• Do you want to rent to a family or an individual?

• Are you willing to rent to students? Or do you want to target professionals?

• Is your property conducive for people with handicaps?

• Are you looking for long-term or short-term tenants?

Once you have the answers to these questions, finding the right tenant will be much easier. It gives you clear parameters of the things you are looking for in your prospective tenant and what questions to ask. Be prepared with a couple of alternatives profile for the ideal tenant so that you don’t miss out on a good tenant that may fall under a different profile.

2. Draft a perfect lease agreement

The lease agreement is your most effective legal weapon in case something goes wrong between you and your tenant. That's why it's essential to spend a lot of time and attention when drafting your lease agreement. It’s important to get an attorney's assistance to develop a lease agreement that complies with your provincial laws. Some provinces have standardized templates that can save you some money.

Clarity on responsibilities and steps to resolutions are the two most important aspects of a good rental agreement. Be clear about the prohibited activities and the repercussions that committing those activities entails. A good agreement will help you avoid conflicts with the tenants and give you a legal edge in case the matter drags that far.

3. Conduct background checks

It's critical to conduct background checks before accommodating new tenants. It takes time and effort to contact references but it helps clarify your ideal tenant profile. There are several ways to conduct background checks. You can look them up online on Google and social media. You can talk to employers regarding the conduct of the tenant(s). Additionally, there are various paid online services that conduct thorough background research.

Letting someone stay on your property without doing background research is being negligent. Removing a tenant or collecting money from a bad tenant is expensive and time-consuming. Don't make this mistake, and spend considerable time doing the diligence upfront.

4. Market your property correctly

Suitable tenants will come to you through reputed and established channels. In the age of social media and crowdsourced platforms, it's very common to come across dubious and suspicious applicants. There are plenty of free platforms to post your rental property but be aware of the target market of the platform you are using. For example, Kijiji may attract a different profile than Facebook as you are anonymous on Kijiji.

Marketing your property is also important. Highlight the best features of your house and why living there would be great for anyone. This will help you attract suitable tenants who match your requirements.

5. Communicate with the potential tenant

We can avoid numerous conflicts with better communication. But unfortunately, tenants and homeowners typically don't have an effective channel of communication. Take the time to interview the potential tenant. Be prepared with a list of questions.

The first step to having better communication with tenants is being friendly and courteous. Establish a personal relationship with your tenants and be more open about what you can't tolerate. Next, stay in touch through telecommunication, emails, and social media. This is essential both during the selection process and after the tenant has moved into your property.

Property managers – the solution to all these problems

These tips and strategies apply to people who want to manage their rental properties themselves. But as you can see, there are multiple steps, some of which can be very time-consuming. Want a more straightforward solution? Hire a property manager.

Property managers handle every aspect of renting a property, including its maintenance and legal repercussions. If you don't have the time and resources to pick and manage tenants yourself, working with a property manager is the best possible alternative.