Turning your condo unit into an investment, by leasing it out, can benefit you in many ways. Prime developments, like Megaworld at the Fort’s latest projects The Florence and Uptown Ritz are highly desirable for many who are seeking a place in the heart of the city. There is a significant amount of income you can get by renting your apartment to people in need of a good space. It pays off, however, to tread carefully, because an unruly tenant can leave you with astronomical expenses you don’t want or need.
Many horror stories have cropped up regarding late payments, destroyed furnishings, and worse. These are situations to avoid at all costs. At the end of the day, it’s smarter to find the right kind of person to rent to rather than to spend time, money, and effort tending to a ruined apartment.
The question is, how do you tell the potentially good tenants from the bad ones? Long-term property investors and real-estate agents have identified several signs. These tells are what you should look for when screening residents for your condo. By paying close attention to the types of people inquiring about your space, with time, you can tell the good eggs from the bad.
The Job Jumper
Look out for a person is in between jobs or involved in shady businesses. Reasonably, only people with stable, steady income can afford to furnish you with regular payment. If someone seems like a good candidate but doesn’t have current employment, inquire about their career plans. Those who are likely to be employed soon or are part of reputable companies are those you’ll want to entertain. Students can also bring in substantial income as tenants, but make sure they have the means to pay or you’ll catch yourself in a bind.
The One with the Paper Trail
You’ll know these individuals by the number of counts they have against them. Ask around and there’ll be buried stories of condos left in bad shape and poor payment records to name a few. This is why it’s important to always do a background check with potential tenants. Make sure that they have sufficient money in their accounts to be able to support the monthly payments.
The Perpetual Flaker
You set an appointment and both of you agree to meet on time. All of a sudden when the hour rolls around they’re nowhere to be found. You’ll get a short text or call saying they can’t make it and to reschedule your appointment for another time. The experts say that the best thing to do is block their number and resume your search for other tenants. When people don’t make an appearance, chances are they aren’t interested. If you do decide to take them on, they’ll be the ones with perpetual late payments or rule violations. People who don’t respect your time often disregard your lease standards at your expense.
The Perennial Haggler
Experienced landlords know that someone who is desperate to negotiate payment terms doesn’t fit the profile of a good tenant. When is it ok to haggle? If someone inquires, just out of interest, they won’t force the issue. You’ll be able to tell if a person doesn’t have the cash when they find all sorts of reasons to support their claim. From car accidents to sick grandmothers, you’re in for a long, embellished story. Bottom line is, if they don’t take no for an answer, they’ve got to go.
The Hard-to-Handle Prima donna
Once you meet them, you’re in for it. They’ll criticize everything, from the way the condo is furnished to the required fees. You’ll get calls and texts at all hours of the day and night that’ll simply drive you insane. The difference between the prima donna and a tenant who asks the right questions is the tendency of the former to nitpick. With experience you’ll notice that condescending stare and haughty tone right off the bat. These are people who are looking to get into an argument you won’t win.
Now that you have an idea about the kinds of tenants you don’t want, it’ll be much easier to locate the ideal renters. Keep an open mind but be on the lookout for the warning signs. Who knows, a person who may not seem right at first glance just might be the perfect choice after all.
Do you have stories of bad tenants? Share it with us in the comments!