For many landlords, a good tenant is something they don’t see very often. They are few, hard to find, and missed when they’re gone. But in reality, they aren’t as rare as many think.
There is only one step to having a good tenant, and it’s a simple one. Rent to an excellant tenant; don’t rent to someone that will be a bad tenant. Of course, now we have to ask, what is a good tenant? A good tenant maintains the property in the condition it was rented to them, pays the rent in full and on time, and doesn’t make drama with the neighbors.
Choosing a good tenant is not difficult. A good application is a three-legged stool, as you’ve probably heard from Empire before. The three legs consist of: credit; rental history; and, income.
Credit: Empire requires a minimum credit score of 650. Anything below that results in automatic denial. In addition, if the applicant owes utilities or a management company (granted the dates do not fall within the protected area), they are automatically denied. Other factors are also weighed. For example, if you haven’t paid any of your bills in six months, you’re going to be rejected.
Rental History: Applicants with negative rental history will be denied. Applicants with no rental history may be approved, with an increased deposit. Applicants with good rental history will be approved, provided there are no issues with the other aspects of the application.
Income: The Net household income must be three (3) times the rent, excluding utilities. Income slightly lacking may be approved, with an increased deposit.
Most landlords have one problem that keeps them from renting to a good tenant. They are friendly people with caring hearts. An applicant comes to you, hat-in-hand, and politely asks you to waive certain requirements. Maybe it’s a family that can’t find a place, a single mother with a toddler, a young couple where one has impacted credit or criminal.
We won’t always say you should refuse. But you certainly must step with care in these situations. In most cases, one can look at an applicant’s credit and instantly tell if they are digging out. If they aren’t paying their bills, and aren’t trying to get back on top of their life, you must say no. Is it the issue with their credit from two years ago and they are catching up? Maybe we can talk.
How to Keep A Good Tenant
You found your good tenant. Now what? It’s time to try and keep them as long as possible.
Just like choosing a good tenant, keeping them is also simple. Keep up on maintenance and inspections. If they have problems, listen to them and address the underlying issues. Where you can, work with them. Always be completely honest.
Happy landlording!