22 Tips on Selecting a Good Tenants for your Property

WHO IS A TENANT?

A tenant is a person or entity who give money in exchange to occupy a property for a specific period, property such as a house, apartment, office space, or commercial building, from a property owner (landlord) through a lease or rental agreement. These gives the right to use and enjoy the property.

Tenants can be individuals, families, businesses, or organizations, depending on the type of property being rented. Here are some common examples of tenants:

• Residential Tenant: A person or family who rents a house, apartment, condo, or other dwelling for residential purposes.

• Commercial Tenant: A business or organization that rents office space, retail stores, or industrial properties for commercial purposes.

• Subtenant: In some cases, a tenant may sublet a property to another tenant, making the subtenant someone who rents from the primary tenant rather than directly from the landlord.

• Corporate Tenant: A company that rents office space or other facilities to conduct its business operations.

• Retail Tenant: A business that rents space within a shopping center or mall to operate a retail store.

• Student Tenant: Students who rent apartments or rooms while attending a university or college.

Also read: How to Become Successful in Real Estate Business

Selecting the right tenant for a property has proven not to be as easy as it appears especially in Nigeria. We should take a look at 22 ways in which we can strategically access prospective tenant for selection.

 1. INSTITUTE CLEAR TENANT CRITERIA

Define the qualities and characteristics you consider ideal in a tenant. Determine if you need a cooperate or individual tenant occupying your property.

2. ADVERTISE STRATEGICALLY

Craft compelling rental listings that specifically target the perfect tenant demographic. Engage both online and offline marketing strategy to help get better options of prospective tenants that suites your ideal client.

3. CONDUCT THOROUGH BACKGROUND CHECKS

Perform comprehensive screenings, including credit, criminal, and eviction history checks. Remember that it is possible for a tenant to accumulate rent in a previous accommodation and move in to somewhere else.

4. VERIFY INCOME AND EMPLOYMENT

Confirm the tenant's ability to afford the rent by requesting income verification and employment details. This will give you an assurance of continuity in rent renewal.

5. REQUEST REFERENCES

Ask for references from previous landlords to gauge the tenant's rental history and behavior. Get from the prospective tenant reliable guarantors who can arbitrate in case of disputes.

6. ANALYZE RENTAL HISTORY

Assess the tenant's rental track record, looking for consistent on-time payments and positive landlord feedback.

7. ASSESS COMMUNICATION SKILLS

Evaluate the tenant's ability to communicate effectively and respond promptly to inquiries. Avoid going further with the process once you suspect that the client is not clear with your terms and conditions to prevent future dispute.

8. CONSIDER LONG-TERM RENTAL COMMITMENT

Look for tenants who are interested in a stable, long-term lease agreement to ensure that the property don’t get vacant within a short period of time.

9. EVALUATE FINANCIAL STABILITY

Ensure the tenant has a stable financial situation to avoid potential payment issues. Watch out for clientele who come negotiating for part payment at first entrance they may likely maintain the habit of paying in piecemeal. 

10. ASSESS CLEANLINESS AND MAINTENANCE

Observe the tenant's current living space or request photos to gauge their cleanliness and maintenance habits if possible, these will give you an idea of how well a tenant may likely maintain the premises.

11. CONSIDER PET POLICIES

If you have specific pet policies, assess whether the tenant's pet(s) align with those guidelines. Some tenants cannot do without their pets, make such policies very clear and known to tenants and ensure you are on the same page.

12. ASSESS COMPATIBILITY

Consider how well the tenant's lifestyle and habits align with your property and neighboring tenants.

13. VERIFY IDENTIFICATION DOCUMENTS

Request and validate the tenant's identification documents, such as driver's license or passport.

14. EVALUATE FINANCIAL/SOCIAL RESPONSIBILITY

Assess the tenant's creditworthiness and their ability to manage financial obligations. Also to avoid taking in criminals, psychopaths, pedophiles etc.

15. REVIEW SOCIAL MEDIA ACTIVITY

Take a quick look at the tenant's social media profiles to gather additional information, to an extent you can get a confirmation of some details given by tenants.

16. CONDUCT AN IN-PERSON INTERVIEW

Schedule a meeting with potential tenants to gauge their demeanor and professionalism.

17. CLARIFY LEASE TERMS

Discuss lease terms and ensure the tenant understands all obligations and expectations.

18. CONSIDER TENANT INSURANCE

Encourage tenants to obtain rental insurance to protect their belongings and mitigate potential liabilities.

19. ASSESS MAINTENANCE RESPONSIBILITY

Discuss the tenant's willingness and ability to perform basic maintenance tasks. expectedly, after three months of occupying a premises the tenant takes the responsibilities of minor routine repairs.

20. EVALUATE TENANT COMMUNICATION

Observe how the tenant communicates and interacts during the application process, these will help you detect the level of sincerity in the information presented to the property managers.

21. SET CLEAR EXPECTATIONS

Clearly communicate your expectations regarding rent payments, maintenance, and property care in your tenancy agreement, see to it that the document is properly signed.

22. TRUST YOUR INSTINCTS

Ultimately, rely on your intuition and judgment when selecting the perfect tenant for your property because this is very important.

Remember, finding the perfect tenant may require a combination of these steps and additional considerations based on your specific rental property and requirements.