One of the hardest parts of being a real estate investor is finding a standout tenant to fill your vacancy. What makes an exceptional tenant? The two most important things are that the tenant pay the rent on time and take care of the property as if it were their own.
According to MarketWatch.com, the considerations for placing a quality tenant in a property are more valuable than even the old adage of location, location, location when investing in the rental housing market. As such, this is one of the most valuable aspects of working with a property management company. A good property management company will find you star tenants who will not only pay monthly bills on time, but also keep the house looking as good as the day they moved in.
But what do property management companies do to make that dream come true? We’ve highlighted some of the most important steps a business can take to protect you and your investment.
The most important aspect of finding a quality tenant is the selection process. A reputable property management company will use a nationwide recruitment company to ensure the most qualified candidates are found.
Several factors come into play when evaluating a potential tenant. Things like criminal and sex offender history are good places to start. But beyond that, other items that will be checked include credit history, income verification, rental history verification, and past eviction searches. By thoroughly vetting potential tenants, you can feel confident about the tenants you allow in your home.
In addition, by being available to receive applications online 24/7, a property management company will be able to quickly process the applications received and land a quality tenant in your property faster than if you did. yourself.
A reputable property management company will likely also have a marketing department that will use as many resources as possible to reach potential tenants. This is particularly important because quality tenants may look for a reputable company that seems more legitimate rather than working with an individual on one. With rigorous marketing, quality renters will gravitate towards properties represented by a reputable company.
A good property management company will always strive to treat tenants with the utmost respect and attend to their needs promptly. A tenant must feel that the house he inhabits is more than a place to hang his hat, he must take care of the property as much as if it were his own. Even the best tenant can feel unhappy and less than motivated to take care of the property when he feels he is not being treated well and his concerns are not being addressed.
By working closely with the tenant, a property management company helps keep the tenant happy and willing to do the little extras that keep their investment going. For many investors it is not possible or practical to build this relationship on their own and by letting a management company take care of the work, you can be sure that the tenant will be happy to call your house their home.
Plus, keeping a good quality tenant happy in the property means they’re more likely to renew, which will keep costs down and keep the steady stream of income from the trusted tenant coming to you.
Finally, in the same way that having a sign for a security company outside your home can act as a burglary deterrent, association with a property management company can discourage unqualified tenants from applying in the first place. place. Often those who cannot meet the rigorous standards set by a property management company will seek out individual property owners who may not have the knowledge or resources to help find qualified candidates. When you partner with a property management company, you send the message to potential tenants that you are looking for quality and that no one will take advantage of it.