Picking the right resident can be the most important part of owning rental real estate. This is your Myndful Minute, where we’ll talk about what you need to consider when you’re placing a resident in your rental property.
Establish Consistent Rental Criteria
When you are picking a resident, the first and most important thing to do is establish qualifications and policies that direct how you will accept or deny residents. Be consistent. Stick to your rental criteria when you’re screening and always disclose who you will or will not accept before any potential residents decide to apply for your property.
Data versus Emotion when Selecting Residents
When you’re selecting a resident, you have to use the data that you gather to make your decisions. Never use your emotions. Feelings are not useful when you’re running a business. This rental property you own is a business, and you have to think of it that way.
If you deny one applicant and then later accept another applicant who has the same qualifications as that first applicant, you’re going to find yourself on a bad path. Your decision can be seen as discriminatory. Use the data you collect, and don’t use your emotions or your personal beliefs when you’re selecting a resident for your property.
Trust but Verify
Verify all of the information you’re presented with in the application. We like to recommend that owners trust but verify what they’re told by applicants. You have a responsibility to make sure the information provided is true and correct.
You don’t want to find out later that the resident lied about key pieces of information in order to get approved for your property. If you don’t do a proper background check before placing a resident, you could find yourself trying to remove that resident because rent isn’t coming in or the lease is being violated. Double check everything on the application and make sure you’re putting the right resident in your property.