By: Stephen J Rock
RPM South Orlando
The goal of every home owner who seeks to use their home as a rental property is to minimize vacancy time by getting the property rented as soon as possible. However, this should never be done at the risk of a poor tenant. If it’s taking longer to rent your home than you had hoped, it can be tempting to lower your standards and accept a tenant you might normally refuse. THIS IS NOT RECOMMENDED!!!
Vacancy is always preferable to a bad tenant. Nothing will cost you more money, more time, and more frustration. Nearly every real estate horror story you have ever heard is the result of a bad tenant.
Something you need to keep in mind when you are deciding what properties to buy is that your tenant quality will be tied to the quality of your properties. There are still good tenants to be found for most properties, but your overall tenant quality will inevitably suffer if your properties are of poorer quality or condition. This is not to discourage you from investing; however, this should be used in order to assist you in formulating your expectations.
At RPM South Orlando, we assess the following areas when qualifying a prospective tenant:
- Income Verification – Can the tenant(s) afford the property?? We assure that tenants earn no less than (3)-times the monthly rent amount.
- Prior Rental History – Tenants should have no evictions on their records in order to qualify.
- Credit History – Poor credit scores, or delinquent payments or accounts in collections are a direct implication that tenants may pose an issue.
- Criminal History – Tenants with felony records are a risk.
The (2) main reasons that rental homes see increased vacancy are:
- Rent is too high – We do a market analysis at RPM South Orlando to establish a rental range for your property, based on rental prices that homes of comparable size and value are going for. If a home is overpriced for its market, tenant prospects will simply move on to the next property.
- Condition of the home – If you rental property is not in good condition, it will not appeal to a tenant prospect. Renters look for a turnkey home, one they can move into in a short amount of time, without doing a lot of work.
We take great pride in our tenant qualification process here at RPM South Orlando. If you have any questions or concerns; or perhaps you are in a situation in which you may have rented your home to a tenant who is becoming a concern, please feel free to speak to a Property Manager today for a free assessment of your situation, and to discuss your options.
(407) 982-2000
RPMSouthOrlando.com
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
