Do you have an upcoming or existing vacancy in one of your rental units? Follow these 3 “must do” task to ensure you land a great new tenant.
1. Do your due diligence – Do you fully understand your local rental market? What are your fellow landlords charging for rental units similar to yours? Are you below market value on your rents and leaving money on the table? These are the question you’ll want to answer as soon as you’re informed you’ll have a vacant rental unit. You’ll want to make sure your asking rent is close to market value for the unit. You’ll also want to make sure the tenants quality of living meets whats called for in the neighborhood. For example, if you have a perfectly priced rental unit but all of the apartment features are outdated (and all other available units are updated), you’ll have a difficult time renting that apartment. You can easily find out what going on in your neighborhood by acting as a prospective tenant and searching through current rental listings in your neighborhood. You can also call your local real estate agent to receive a free rental market analysis.
2. Background, Credit check, Employment verification – Many small landlords select tenants with “their gut feelings”. While you should definitely trust your gut, I would suggest also doing a background check for any applicant over the age a 18. This is the very best way to truly know who’s living in your rental. I would also conduct a credit check to verify that they’re financially trustworthy. The last bit of information is probably the easiest to do and the most important. Verify the status of your potential tenants employment and their ability to pay. During the application process you should have asked for pay stubs and for the tenants employer information. Call the employers HR department and tell the representative you’re calling to verify employment for a rental application on the said tenant. Download to packet below to determine whether the your prospective tenants income should qualify for your rental unit.
3. Take a holding deposit – Okay. You’ve done your due diligence and found a great tenant. They are ready to move in a few weeks, but the lease has not yet been signed. Make sure you receive a “holding deposit” from your new tenants. A holding deposit acts as insurance for you. It insure that your prospective tenants plan to move in and not continue searching for another apartment. Let’s say for example you’ve stopped marketing the apartment because you’ve found the perfect tenant. The plan is for them to move into the property in 3 weeks and you’ll draft up the lease in the process and give them a call when it’s ready. 1 week before move in you call them for the signing and they’ve informed you they’ve already found another apartment. You have nothing from them and you’ve also wasted 2 weeks of marketing while you had the apartment off the market. The easiest way to combat this scenario is to get a deposit. Download the packet below for a sample holding deposit form.
Do you need help finding new tenants? We can help you fill your vacancy at NO COST to you. We conduct a background checks, credit checks, employments/income verification and draft all lease paperwork for you. Contact us for details. 617-297-8641 or Contact@Mandrellco.com