December Owner Report

Have you ever wondered what goes into our process of matching good tenants with our wonderful owners? There are a few tips and tricks we have learned along the way to ensure you have a tenant that will be responsible and dependable for your properties. Picking a tenant is ultimately a business decision. Though it can be tempting to rent to tenants you “click” with, you should pick your tenants based on objective facts instead of subjective thoughts. Leasing to the right tenant is crucial to keep your property both occupied and profitable.

Income Levels/Proof of Income

According to Buildium’s 2021 Rental Owner’s Report, 30.9% of renters’ ability to pay their rent each month was negatively impacted by the pandemic. Unsurprisingly, this resulted in 31.3% of rental properties’ profitability being negatively impacted. Clearly, it’s more important than ever to make sure that your renters have the financial capability to pay their rent. Ideally, you should find a tenant who has a monthly income of at least three times the monthly rent, which is our current requirement to rent through GTR Management.

Background and Credit Checks

Another element to consider when finding a good tenant is their credit score. A credit score doesn’t necessarily paint the whole story of a tenant’s ability to pay, but it can give you some insights into their previous behaviors as well as their debt to income ratio. A credit report will also show you whether a prospective tenant has ever been evicted or filed for bankruptcy. Generally, we are looking for accounts consistently paid on time, a stable employment history, and a reasonable debt to income ratio.

A background check will give you information related to a potential tenant’s criminal history, address history, credit inquiries, and known aliases.

Rental History Background

The last element that we look for in consideration of renting to a tenant is their rental history. Getting a confirmed rental history from prior landlords lets us know the reliability of the tenant and how they took care of the property. Having a negative landlord reference can cause a significant impact on renting to that specific applicant. We want to ensure that you are getting the best tenant for your property.

We hope you have a Merry Christmas!

2 views0 comments

Recent Posts

See All