Tenants are the bread and butter of every property investment. They are the means through which you earn a solid, regular income from your property. Though finding good tenants sounds easy, it can become much more of a challenge.
That’s because nobody wants a good tenant. There are too many risks. What investors now demand are the most perfect tenants – who not only pay their rent on-time but who can be relied upon to stay in the property for the longest possible period.
That’s where property management companies come in. They have the necessary skills and tools to filter through the highest quality tenants. But what makes for the perfect tenant? Here, we go through the top 10 qualities of the perfect tenant that every investor should know.
#1 On-time rental payments
On-time rental payments are an absolute must.
They are integral for the success of the landlord-tenant relationship. Let’s not forget that rent is needed by the landlord for mortgage repayments. In addition, late rental payments can result in tension that can destroy the relationship and, in the end, lead to eviction. Landlords must avoid eviction as it can be costly, messy and ultimately cost you income in the long-term. Adequate tests should be performed to establish whether the tenant can pay and, more importantly perhaps, has a positive history of conducting rental payments on time.
#2 Self-maintaining tenants
The perfect tenant is someone who manages and maintains the property as if the property were owned by them.
This means the landlord must worry about very little. The advantages for the tenant are enormous; it results in the return of the security deposit as well as positive recommendations that can be used to secure another property.
Self-maintaining tenants manage the property from A to Z. They ensure that no damage occurs to the property throughout the tenancy agreement. Of course, normal wear-and-tear can occur, and is expected, but no more than that.
#3 Excellent communication
If things don’t go quite so well with the property, you can trust the tenant to inform you how the property is operating.
The perfect tenant is someone who will communicate with you, in a timely manner, should anything go wrong. This gives you ample time and opportunity to address the problem before it mushrooms into something far more serious – saving you even more in the long-term.
However, there is a fine line between excellent communication and becoming a nag.
Nobody likes a nag, particularly a landlord – who may be busy with other life, personal or business matters. The perfect tenant is someone who treads that fine line with respect – someone who reports to the landlord where necessary, but someone who respects the landlord enough not to overdo communication to become an irritating burden.
#4 Adhering to the lease agreement
The best tenants are those who, to the letter, adhere to the lease agreement.
This means not smuggling in additional tenants or earning a profit from the landlord’s investment. The perfect tenant is someone who can be trusted to stick to the letter of the agreement. Not only that, but the ideal tenant is someone who ensures that the property is kept to the highest standards of cleanliness.
This is an absolute must – as unclean properties are liable to be cleaned, at the expense of the landlord, and an expense that is subsequently taken from the tenant’s security deposit. It is in the interest of the tenant, then, to take the necessary time to clean the property at regular intervals throughout the lease agreement.
#5 Rental protection
The perfect tenant is also someone who takes out the necessary insurance documents. These documents are needed to protect the tenant – their goods and possessions – in case anything untoward or unexpected happens to the property.
The landlord is often not implicated should their possessions get damaged or stolen. Again, it depends on the terms of the lease agreement but, generally speaking, the ideal tenant should take out rental insurance to protect their interests.
These are the top 5 qualities of the perfect tenant! Check back to our Las Vegas property management blog for even more great articles on how you can find the perfect tenant for your real estate investment.