Your Ultimate Guide to Finding the Perfect Renter

Ready to relocate but you’re not ready to sell? Renting out your home can help you pay off your mortgage in the process, but finding the perfect renter can seem overwhelming. It doesn’t have to be that way, though. Not every applicant will be right for your property and that’s OK. With a good game plan and some patience, you can streamline the process and take some of the stress out of the equation.

Use these simple tips as a guide to help get your place leased to a desirable tenant without losing time, money (or your mind) in the process.

Put Your Best Foot Forward

So how can landlords get the type of tenant they want?

The simple answer is that good tenants will be more likely to be attracted to a clean, well-maintained home. These are the kind of tenants who would be more willing to uphold to those same standards while living in your home. On the other hand, if the home is dirty and in the need of repairs, it could attract that same type of treatment from a tenant. Like attracts like in the real estate industry.

Before you can find the “perfect” tenant, you need to invest in your property. Clean and repair your house so it’s walk-through-ready as soon as you submit your ad. Those who show up to walk through your house first are often the most organized and motivated (bonus characteristics in tenants). Make an effort to impress them with a clean home.

Establish Rental Policies

To encourage a lasting relationship with your future tenant, start things off on the right footing. Solidify your rental policies ahead of time that are reasonable and respectful of the needs for both parties. Determine the answers to common questions that could arise including whether or not you’ll accept applicants who require a co-signer, any minimum credit score requirements, policy on pets, smoking, etc.

Do Your Research

When you put your home up for rent, you’re now subject to landlord/tenant laws at the state and federal levels. It’s also a good time to become familiar with the Fair Housing Act, which protects qualified tenants against illegal discrimination including race, religion, national origin, family status, age, sex and disability.

The laws are constantly evolving to meet the needs of landlords and tenants (and they vary state by state), so be sure to do your research. Landlordology.com offers a handy breakdown of real estate laws by state.

Price and Advertise Property

When you place an ad, you’ll obviously want to list the number of bedrooms and baths but also list other relevant amenities that set your house apart from the others. Include professional photographs and schedule the open house walk-though at times which suit the demographic you’re trying to attract.

When determining how much rent to charge, there are a number of things to think about. First, consider what landlords are charging for similar rentals in your area. If the rent you want to charge is way over what everyone else around you is asking, you may find yourself with a vacant home longer than expected. You’ll also want to research what your home is currently worth in the market today. The amount of rent you charge should be a percentage of that value (typically between 0.8% and 1.1%). Keep in mind that the rent you charge should be at least equal to the cost of your monthly mortgage bill and don’t forget to factor in an estimation of taxes, HOA, insurance and any unexpected repairs.

Still not sure if you’re charging too much or too little? Check out the Rentometer online tool to compare your rent with other local properties.

And, as mentioned above, be sure to do your research; rent control laws exist in some locations such as New York, Maryland, Washington D.C. and California. Knowledge is power!

Administer Tenant Screening

Tenant screening is a vital step when you’re looking to rent your property. Start with a formal application and administer the appropriate background checks (including reference calls) even if you receive a referral from a friend. Keep your relationship on a business level- courteous and professional. And, like any great relationship, communication is key.

A thorough tenant screening should include a credit, criminal, and eviction report. This will give you a good overview of the history of person who is applying to rent your property. And while some landlords snoop through social media as an alternative form of tenant screening, tread carefully. While it may give you a peek inside the applicant’s lifestyle (Are they partiers? Do they have a pet they didn’t mention?) if you choose this route, make sure you’re well aware of all the Fair Housing Laws.

You can find free basic, customizable rental applications and agreements online from sites such as LegalContract.com.

Secure a Solid Tenant

Before you hand over the house keys to just anyone, make sure you’ve covered all the bases above and don’t hesitate to ask for advice from trusted professionals in the real estate industry.