Are you planning on buying rental property in the Central Valley? If so, like most owners have asked in the past, you may I’ve asked yourself the question “what makes a great tenant?”. In this article, we will answer this question and provide you with helpful tips you can use for choosing the next tenant to live in your rental property.
What Are Their Financial Qualifications?
The first thing to look for when choosing a tenant to live in your rental property is their financial qualifications, including their income and credit score.
For their income, a potential tenant should be earning 2 ½ to 3 times the amount of rent you are asking for your property.
For example: If you’ll be charging $2,000 per month for rent, then a prospective tenant should earn an income of $4,500 to $6,000 per month.
When it comes to their credit report, although the actual credit score is important, you shouldn’t just let a potential tenants score stop you from renting to them.
Specifically, you should be reviewing their payment history to see if they are making their payments on time, if they have any delinquencies, and you should confirm the total amount of debt that they have because, their debt will affect their ability to pay their rent on time on a monthly basis.
Review Their References
Ater you have reviewed their financial qualifications and their credit score, you should next be contacting all their personal and references.
Once you have done your due diligence with a potential tenant you should have the confidence that you need to move forward and rent to them or not.
Learn More About How To Choose A Great Tenant
To learn more about what makes a great tenant, or to speak with us about our property management services, contact us today by calling (209) 572-2222 or click here to connect with us online.