Finding Tenants
The secret to long-term real estate success is to find "qualified tenants." You want tenants who pay their rent on time each and every month. And, you want tenants who "take pride in ownership" and take care of your property.
In an ideal situation, you would have "ready to move in" tenants before you purchased rental property. However, most of the time, this is not the case.
There are many great ways to find tenants. We will cover some of the more common techniques below:
Get Referrals from Current Tenants: The best way to find a "good" tenant is to get referrals from your existing tenants. Offer a referral fee or discount on the next month's rent. Most tenants will not recommend someone they dislike, distrust or would not want to live next door to them.
Place Ads in the Local Paper: Another technique is to place ads in your local paper. Make sure you describe the unit, give the location and let people know what the monthly rent and move in date are. Don't violate any discrimination laws by saying you are looking for a "married couple with good credit history." You don't want to get fined or sued. Your best bet is to check out other ads as a reference.
Place "For Rent" Signs on Property: Another great way to find tenants is to simply place "for rent" signs outside the property. Describe the property, the monthly rent, security deposit requirement and give a good contact number for interested prospects to call you.
Contact Rental Management Firms: If you need renters fast, you could call a rental management firm. They might have "pre-screened" candidates waiting for an available unit. Although this method comes with a fee, it could be a good way to find tenants fast.
Post Notices on Bulletin Boards: You could create a "for rent notice," make a couple hundred photocopies and place them on bulletin boards at local businesses. Visit grocery stores, laundry mats, the library and other local businesses.
Ask Friends and Family: Another great method is to ask friends and family if they know anyone looking for a place to live. You could offer your friends and family a referral fee or gift card to one of their favorite stores.
Remember, it's better to have a vacant unit than have a renter who won't pay his or her rent. Your ultimate goal is to find someone who will always pay on time and take care of the property as if they owned it.
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