The easiest way to secure steady cashflow in your investment property is by securing an awesome tenant in your rental. But how do you nd awesome tenants that will pay rent on-time and protect your property?
As a landlord you’ve likely heard the horror stories of the tenant who never pays rent, the tenant who trashes your rental, or the tenant who causes conflict in the neighborhood. The good news is there are many great ways to find tenants you trust.
Wondering where to begin? Let’s dive into where to look for tenants, how to screen them to avoid any surprises, and how to set your base criteria for renters.
Advertising to the right places
According to survey data recently collected by TurboTenant, over 50% of renters look for their next rental online through listing sites like Apartments.com, Redfin, and Zillow. For the largest pool of applicants, you’ll want to publish your rental listing on at least one of the popular listing sites. Landlord software solutions will help you create one listing and push it to dozens of platforms for free, while also automating your lead collection process. We recommend this method so you have the best chances of reaching all interested renters.
When advertising online, make sure your rental listing is optimized to best showcase your property and generate interested leads. Make sure you have high quality images (the more the better), highlight your property’s best features like wood doors or green spaces, and use eye-catching words to describe the unit. If you’ve pulled out all these stops and still aren’t receiving leads, make sure your listing is priced correctly.
Another option for finding interested leads is through word of mouth referrals. Have a past renter who was awesome? Ask them if they know anyone who might be interested in your property. Know other real estate professionals in your area? Let them know your rental is available. One tip to keep in mind is no matter how trustworthy the referral source, we always recommend screening the applicant.
Always screen your tenants
The best way to know your next tenant is financially qualified for your rental, a safe addition to the neighborhood, and has a standup character is by thoroughly screening them. We recommend a short interview, previous landlord references, employer references, proof of income, and a comprehensive background check. It’s also always great to meet an applicant in person so you can start the relationship on a positive note and set the foundation for a mutually respectful relationship.
To collect a background, criminal, eviction, and credit report, we recommend TurboTenant. It’s 100% free for landlords and all you need is an applicant’s email or phone number to send the application (no more holding on to sensitive information like social security numbers). One important thing to keep in mind is that every city has unique laws and regulations related to tenant screening. Stay up to date with yours.
Setting criteria for renters
If you list your rental online, it’s likely you’ll receive an influx of potential tenants. While helpful, it can feel overwhelming when it comes to next steps. After you send each lead an application and vet them properly, how do you know who to move forward with?
First, you’ll want to establish a base credit score that you’ll accept. For context, the average credit score for Americans in 2024 was 717 and fair to excellent scores range from 601 – 850. The exact range you aim to accept is completely up to you.
Although a helpful indicator, credit score is not always the end all be all. Keep in mind that some renters might not have a credit score, especially if they’re recent graduates, and some financially stable renters have been hit with an unexpected circumstance that negatively impacted their credit score. We recommend looking at other factors like pay stubs, employment history, references, and even asking the tenant about their credit to get the full picture.
In addition to credit score, it’s important to set a target income for your rental. By doing so, you can help to ensure that your tenant is in a comfortable spot to pay rent on-time, every month, and without worry. Some landlords require income to be twice or even three times the amount of monthly rent, but again the final number is up to you.
Next, you’ll want to look into an applicant’s eviction and criminal history. Usually any previous evictions are a red flag and could put your rental at risk for lease violations or missed payments. Talking to previous landlords can help provide insight here, but we recommend not moving forward with a tenant who has a previous eviction unless it’s a special circumstance.
The same goes for criminal history, you are the final say on what convictions aren’t a good fit for your rental, but always make sure you do an in-depth review of the criminal check. Make sure to check arrests, convictions, the age of conviction, evidence of rehabilitation, and what references are saying. There’s a big difference between a decades-old trespassing incident and a recent first degree murder charge, so make sure you’re taking a deeper look into the criminal report.
Pro Tip: No matter what your criteria is, please make sure you’re in compliance with the Fair Housing Act (FHA). Fair Housing laws restrict landlords from denying housing to applicants based on race, color, national origin, religion, sex, familial status, or disability. You can read more about the FHA here.
Final thoughts
It’s important to find the best tenants possible – they are your business partners after all. As long as you’re advertising in the right places, thoroughly vetting applicants, and making sure you set reasonable criteria for your ideal renter, you should be one step closer to securing your dream tenant. If you’re still unsure after following these tips and tricks, try doing a social media search, seeking more references, or communicating your concerns with the applicant.
