We all know that choosing the right tenant can help reduce vacancy rates. And reducing vacancy rates is good for your investment and bank account. So, what do you need to do to ensure you’re finding the best candidates for your rental?
Check their income
When it comes time to find the right tenant, you need to do some investigative work. Make sure that the potential renter has enough income to handle monthly payments on the property. You can do this by asking for a reference from the bank, requesting a bank statement from their business account or looking at previous tax returns. Here are a few other ways to verify income.
Do a background check
Beyond just looking at income, you need to find out what type of history a tenant has. Check out their credit history by running a report. Do they have a good score? Compare their debt to income ratio. Is it manageable? You also want to run a background check, but make sure you’re familiar with state laws. Some states don’t allow you to hold past mistakes against renters. While looking at a tenant’s history, you may want to consider how many times they’ve moved or changed jobs. This can help you determine if they’re reliable and trustworthy.
Get references
Make sure you get references when you’re considering renting a commercial property out to someone. It’s even better if you can get a reference from an old landlord. If you talk with a previous landlord, ask questions that will help you determine what kind of tenant they are, including if the rent was paid on time and if they took good care of the property.
Consider first impressions
Choose a tenant you feel good about. You want to select someone who you can get along with since you’ll need to establish a healthy working relationship.
Check to see if they compete with or complement your current tenants
Consider if your tenant’s business competes with other tenants at your property. It’s best to avoid any potential competitors.
Work with a property management company
If you want to ensure you find the right tenant for your commercial property, contact us at PMI: https://www.flintpropertymanagementinc.com/. We have a thorough screening process for selecting ideal candidates. We’ll make sure your property is well-maintained and cared for.
