You have opened your house for rental and have had couple of applications from some interested people. But now, you do not known how to choose the best one who can take care of your house and still provide you perfect remuneration each week. Well, if you are in such a dilemma then this guide will show you how to choose that perfect renter for your rental property.
What kind of renters you are looking for?
The very first thing to understand while leasing a house is that your potential applicants cannot afford a home mortgage because they might have bad credit, lost a job or might have lost a house even because of their financial problems. You should understand that most tenants do not have enough of financial ability to back home loans but might have just turned their table slight with a bit of financial help. They will probably have a good rental period for at least 6 months, might have got a new job and though they have had bad credit but they must be taking care of improving the credit with paying older dues and car payments.
You should understand this situation and look out for tenants who are genuinely interested in the property and can pay the quoted rent per week mentioned in the lease agreement. It's fine if they have had bad credit history but until they are able to pay the rental that should not be a big problem to the property owner.
Will they buy your house?
You can even ask the tenants whether they might be interested in buying the property few years down the line. You can lease out the property and rip the rental each week unless the tenant eventually looks at buying the house. But you can add the option for the tenant to buy the property whenever they want. So, in case they wish to invest in your property then you can sell it for a nice profit in few years time.
The Gut Check
One of the most important things to keep in mind is gut feeling. You may have feeling that a certain person might be the most suited candidate for the rental property. They might work hard to pay of their rental each week but do ask yourself whether you can risk your time and effort in working with each applicant for rental. An old fashioned gut checking can help you decide between two equally good candidates.
Being a landlord can be extra burden and responsibility but it does bring in extra revenue each week. Its up to you to decide whether you should venture into the real estate property business or not. Even if you decide not to rent your property then you can always sell it and walk away without having to pay any extra money for gain taxes. If you are seriously looking for the rental business then do consult with your real estate agent to find more about the current rates and expense incurred in rental business.
By:Gloria Smith
