As a landlord, protecting your investment should be your #1 priority for optimal return on investment. And one way of doing so is by finding and retaining great tenants.
While it can be tempting to rent out a vacant property quickly, doing so with disregard for tenant quality can prove to be nightmarish down the road. You may rent to a tenant who fails to pay rent or causes negligent property damage.
And what’s even worse, evicting a difficult tenant can be costly and time-consuming. In Virginia, the tenant eviction process can take up to 4 months. The costs usually average at $3,500.
6 Proven Tips on How to Find Great Tenants for Your Rental Property
1. Know What You’re Looking for in a Tenant
The tenant selection exercise is a business decision. You should base the exercise on objective facts rather than subjective opinions.
Now, good tenants have certain traits in common. Generally, they share the following:
- Have a stable employment history
- Earn a steady income every pay period
- Have a good credit rating
- Have a good rental and criminal background
- Have zero criminal record
Once you know what qualities you’re looking for, begin your search next for your rental property.
2. Polish the Property in Readiness for Renting
The Virginia warranty of habitability requires that landlords rent out livable homes.
It shouldn’t, for instance, have issues such as:
- Cracks, sinking, or other signs of structural problems.
- Leaks, missing shingles, or other signs of roof damage.
- Lack of essential utilities, such as water and electricity.
- Plumbing issues like sewage backup or leaks.
At the basic level, the state of Virginia requires landlords to provide a rental unit that has hot water, heating, and sufficient garbage containers. It also goes without saying that the home must be structurally sound.
In addition to getting the basics right, make sure to spruce it up to make it more enticing to prospective tenants. The following are a few things you can do.
- Clean it thoroughly.
- Conduct a thorough inspection to identify any potential issues.
- Address all necessary repairs, such as electrical faults, plumbing leaks, or structural problems.
- Freshen up the walls with a coat of new paint.
- Spruce up the curb appeal.
- Ensure all appliances are working as they should.
3. Draft a Proper Lease Agreement
Before you can begin advertising the unit, draft a proper rental agreement. This is an agreement that possesses two crucial aspects. One, it is detailed; and two, it is legally binding.
A detailed rental agreement is the best guarantee of a trouble-free landlord-tenant relationship. Make sure that it contains certain basics, such as:
- Repair responsibilities for both the landlord and tenant
- Pet restrictions (if any)
- Responsibility for utility payments
- Rent-related terms, such as the dollar amount of rent, and when and where it is payable
- The security deposit amount and what the tenant must do to get it back at the end of the lease term
The other aspect of a proper lease agreement is the legality. As a landlord, you must abide by specific laws and regulations when drafting a lease agreement. Including illegal clauses can result in certain legal repercussions. You cannot, for instance, draft clauses that:
- Prohibit tenants based on a protected class, such as race, color, religion, or disability.
- Increase rent in disregard to any applicable laws.
- Fail to follow the proper eviction process when removing a tenant from their rented premises.
- Require a tenant to waive a legal right.
- Shift the repair and maintenance responsibility to the tenant.
4. Charge the Right Rent
This can be one of the hardest parts of the rental process, whether you are a new- or experienced landlord. How much you charge can determine a myriad of things, from your profit, to your vacancy periods, to the tenant quality.
You’ll want to do proper research by analyzing different factors. Such as, your property’s worth, prevailing rent prices in the area, rental demand, running costs, and the amenities you’re offering.
Ultimately, the right rent allows you to maximize your income while ensuring the property remains competitive.
5. Advertise the Property to Prospective Tenants
Once you’ve covered the basics, begin the marketing process ASAP. Remember you’ll only get to optimize your ROI when it is occupied. Otherwise, a vacant property will only cost you money.
Now, when it comes to rental advertising, you’ll need to think beyond yard signs. This is no longer the 90s when yard signs and newspaper ads used to work wonders for landlords. Nowadays, you need to use a combination of effective methods.
Online advertising is now the industry standard thanks to its ability to reach a large prospective tenant pool. Some examples of rental listing sites you can use include Radpad, Craigslist, Trulia, and Zillow.
Additionally, you can post on community bulletin boards and incentivize current tenants to refer their friends or family.
6. Screen Prospective Tenants Thoroughly
Searching on Google or social media simply won’t cut it when it comes to finding a great tenant for your rental property. You need to use a meticulous tenant screening process that can give you all kinds of data required to make an informed decision.
For proper screening, you’ll need to check and verify each tenant’s income and creditworthiness, as well as criminal, employment, and rental backgrounds.
This will help you maximize your chances of landing the perfect tenant. A tenant who pays rent on time, reports issues quickly, cares for the property, and abides by all other terms of the lease agreement.
Conclusion
Finding great tenants for your rental property requires calculative moves. With these tips, you can rest assured that the days of landing difficult tenants will be a thing of the past.
If you need help screening tenants or the overall management of your property, look no further than Keyrenter Richmond.
We can help you take the stress out of managing your investment property in Richmond and the surrounding areas. Get in touch to learn more!