Great Tenants can make or break an investment property. With this digital age it can get even more difficult with printers and fraud. Here are some steps in order to ensure that you get the best tenants to make a profit in your rental property.
1. You do the credit check. I’ve seen Agents and Tenants try to forge documents. With photoshop you can literally do anything or create anything on paper. The only way to ensure that you are getting the right credit check is to do it yourself, or get your agent to do it.
2. References: This is two fold, from the previous landlord and from their own contacts. While the deck will be stacked with the references that the renter gives you, you can ask some simple questions to make sure they are not lying or. The landlord is the more important. Why did they leave the previous residence, make sure the reason makes sense.
3. Income: Usually on a credit report it lists everything that the renter owes, sometimes there may be things that do not show up on there. Their income for obvious reasons must make sense. Get Job letters, Notice of Assessments and T4. You may also want to ask for bank statements. If the renter does not want to give you first and last months rent then walk away. Also you should check with the HR department to make sure that the income is not forged.
4. Check the Renters Car & Current residence: If their current place is a disaster, then run for the hills. They will destroy your place as well.
5. Interview: Before confirming any lease, have an interview with them. There is a lot to say about a gut feeling and if you can get along with the renter. If they are late or make excuses then forget it. They will be late for rent as well.
Finding a good renter is very hard because anybody who can afford to go through the rental process can usually buy a house and afford a mortgage. You need to find somebody that is not looking to buy something at this point and may lease for a few years