Over a year ago, we shared some valuable information with you about how to identify good potential tenants. The ability to identify quality potential tenants is invaluable for someone in your position. But, what about identifying great existing tenants?
There is serious value in great tenants continuing to rent from you:
No risks.
Bringing in a new tenant means taking risks on them. Will they treat the property well? Pay their rent? It’s far easier to continue a relationship with an existing, trusted tenant than it is to take risks on a new, unfamiliar one.
Save money.
Turnover costs money. For every day your property is on the market, you lose rent. Not to mention the paperwork and administrative tasks.
Save time.
Why spend time marketing an open property when you could invest a fraction of that time simply to retain a quality tenant?
So, how do you identify a high-quality tenant you already have?
You’re excited to visit their property.
When you and a tenant have a great relationship, you are usually excited to visit their property. A relationship like this will likely make it easier for the two of you to communicate, work out issues, and be proactive about the future.
They always communicate issues clearly and early on.
Some tenants wait until they’ve reached a boiling point before they share issues with the property. Great tenants, however, respond to your inquiries regarding their potential concerns with the property. They frequently engage in conversations about their property so you never have to read their minds.
Their business contributes to your community.
Tenants whose business’ contribute to the community (in terms of economic health, connection, etc.) tend to be great tenants. Not only do these kinds of tenants improve your own community, which is invaluable, they are also great people to have in your network.
They’ve sent you business.
The best kind of tenants are the ones who send you referrals and help to grow your own business. You should be sure to go the extra, extra mile for these tenants, because chances are they’ll do it again.
Our original post about identifying high-quality potential tenants:
As a landlord or property manager, you assume the responsibility of finding good, long-term tenants for your building. As such, you are expected to maintain a healthy relationship with your tenants. This can be difficult when you have a tenant who doesn’t pay their rent on time. A bad tenant can also cost you in terms of legal fees and property damages. To prevent renting a property to a bad tenant, make sure you properly screen them before they sign the lease. Remember to look out for “red flags” during the screening process that will help you separate a good tenant from a bad tenant. Here are some indicators of a good tenant:
- Outstanding References – A good tenant will provide your with outstanding rental references. When calling these references, make sure you have a list of specific questions you would like to ask their past landlords. For example, you may want to inquire about past property damage, level of noisiness, or previous complaints against them.
- No Evictions – A good tenant’s record will be eviction free. If a potential tenant does have a past eviction, make sure you ask about the circumstances surrounding that evictions from both the prospective tenant and their previous landlord. You may want to consider a tenant with an eviction if it appears an isolated incident.
- Clean Background – During the tenant screening process, you’ll want to conduct a background check. Good tenants rarely have any past indiscretions on their record. If you discover a criminal past, consider the crime and the circumstances surrounding that crime before signing a lease with this prospective tenant.
- Good Credit – A good credit history can be a excellent indicator to whether or not a tenant will pay their rent consistently and on-time. You may not consider a tenant’s poor credit history as a deciding factor. However, before having them sign a lease, make sure you’ve run a thorough background check and have spoken with their references.
- Great Rental History – Good tenants will have a track record of great rental history. Look for inconsistency between rental periods and the duration of those periods. You’ll be able to see whether or not a tenant will be committed to renting from you for a longer period of time.
