What Makes a Good Tenant: 10 Things Landlords Should Know

Every landlord is looking for the perfect tenant.

Here’s our guide to understanding the elements you need to weigh and benchmark before deciding who will reside over your property.

Read on to learn ten critical pieces of information about what makes a good tenant.

1. Tenant Screening

Tenant screening is an essential tool that landlords should understand and use. Renters that seem ideal on their application forms can be full of problems if the screening process isn’t followed.

Tenants who don’t pay, are constantly in arrears, or cause damage to the property can cost landlords a lot of money and waste time. Tenant screening can provide information about the individual’s financial, criminal, credit report, and rental history – all valuable knowledge.

2. Rental Agreements

Landlords need to know many rental agreements when renting their homes. This agreement summarizes the terms and conditions of a landlord and tenant. It also lists the rights, responsibilities, and obligations of both parties.

A rental agreement should include the lease’s start and end dates, the rent amount, security deposits and other fees, rules about who can live there, how pets are treated, and who is responsible for maintenance and repairs.

By setting these rules up front, landlords can protect their investments and make it less likely that there will be problems in the future.

3. Security Deposit

The security deposit is essential information for landlords to know. This will make the tenant more likely to follow the lease rules and take care of the rental property.

The security deposit protects the landlord financially if damage or the rent isn’t paid on time. With a security deposit, the tenant knows that the owner will make any repairs that need to be done before the end of the lease.

4. Repairs and Maintenance

Repairs and maintenance are essential components of being a successful landlord. They should be considered when setting up and managing your rental property.

Proper property maintenance can help landlords avoid headaches in the future, such as having to cover costly repairs themselves or dealing with unhappy tenants. 

5. Rent Collection

Rent collection gives landlords a starting point for analyzing how well their property is doing.

Rent collection is essential for two main reasons. First, it shows the landlord that the tenant is financially responsible. Second, it shows the bank that the landlord can meet their financial obligations under the loan terms.

Also, collecting rent shows the landlord what changes need to be made to lower the number of empty apartments, improve efficiency, and make the most money overall. In a nutshell, landlords must pay close attention to rent collection to succeed in the rental business.

6. Eviction Procedures

An eviction is often necessary to regain possession of the rental property. Understanding the laws and regulations governing the process is paramount.

Each state has rules concerning eviction procedures, and landlords should research those regulations, ensuring that the eviction itself complies with the law. This helps ensure that the process is as smooth and cost-effective as possible while correctly protecting the rights of all involved. 

7. Insurance 

Being a landlord comes with many risks, leading to expensive damages, legal fees, and other financial losses. With that being said, landlord insurance is a must for landlords to protect their interests.

Having the right coverage can protect the safety and security of their tenants and the property itself. In addition, landlord insurance can help to secure legal fees should an issue arise. It also covers lost rent if a tenant cannot pay due to tenant damage or property damage. 

8. Fair Housing Laws

Fair Housing Laws are an integral piece of information landlords should know. These laws prevent landlords from discriminating against tenants based on race, gender, religion, national origin, and other protected characteristics.

All landlords must adhere to federal, state, and local fair housing laws when renting out their units. This means that any decisions regarding tenant selection and terms of tenancy should be made without regard to the protected characteristics of the applicants. 

9. Tax Obligations

For people in charge of rental property, staying current on filing and the different state, provincial, and local tax rules is very important.

Landlords need to report their rental income to the government because they could face hefty fines and other severe problems if they don’t. Landlords can run their businesses well and stay in good standing with the government if they know their tax obligations.

10. Credit Check

Credit checks provide landlords with crucial information such as current and past payment history, outstanding balances and debt owed, public records, collection accounts, bankruptcies, etc. Such information is invaluable for a landlord when assessing an applicant’s ability to pay their rent on time and in full.

Know What Makes a Good Tenant

What makes a good tenant? Tenant paying rent on time, keeping their homes clean, and respecting other tenants’ property is ideal.

Landlords should rely on these ten factors when considering a tenant and strive to maintain an open line of communication throughout the whole process to ensure that the rental relationship is positive.

If you want more tips to ensure a successful tenant-landlord relationship, contact the Sunrise Realty property management company today!

We hope you enjoyed reading this article. Check out our blog for more informative resources if you found them helpful.

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