As a property owner in Los Angeles and you have space to rent, whether it’s commercial or residential, one of the most important things to consider is your tenants. Here are a few hints for how to properly vet tenants and find people you can rely on to maximize income from your property.
1. Get References
This is the most obvious way to find good tenants, but it’s not just word of mouth or neighborly recommendations. The types of references you should be looking for is from previous landlords, and any other statements that support the track record of the renter in question. Character references or friends are fine, but you need hard facts. You can also use the assistance of professional companies to do things like run background checks or process credit score inquiries.
2. Use a Property Management Company
Property management companies have become one of the most common ways to manage real estate, especially if you own many units. Some landlords simply don’t want to be involved in the process, and would rather pay a reliable management company for peace of mind. However, the beauty of these companies is that they also vet tenants more effectively than almost any other service. Given that it’s part of their job, and in their best interests as well to offer only the best candidates leases, this is one of the most reliable ways to find solid renters. Vetting tenants is one of the most common reasons that many property owners use these types of companies, but just make sure you know what you’re paying for, and how much.
3. Don’t Say Yes Immediately
Reviewing tenants can be a tricky business. Sometimes you’ll meet people who seem to be a dream renter, whether because they offer to pay more to secure a property or because they have good credit ratings and reliable income. Forbes states that although finding a potential tenant who loves the property and is excited may seem like a good fit, over eagerness can also mean that property owners make decisions too hastily. The moral of the story is that you need to take your time and follow through on all qualifications before you make a final decision.
4. Keep the Good Ones Around
One of the most effective ways to retain the best tenants is with proper maintenance management. Property Management Insider advises that a good preparation tactic is to determine what are the most common maintenance requests for your property and develop trouble shooting tips to help the tenant resolve the issue on their own. While having service available to fix problems as soon as possible is important, sometimes it’s a simple fix that a renter will be happy to do themselves if it gets the job done faster.
Good tenants who pay on time are invaluable to any property owner, and you’ll want to cultivate a positive relationship with the ones you want to keep. If you put in the proper time to vet renters and take care of problems as they arise, you’ll be sure to maximize your profits and enjoy peace of mind knowing you have trustworthy residents.