A person invests his lifetime income in buying his dream home. In today’s competitive environment it is not easy to get good tenants easily. Finding a tenant is a easy but finding the most suited and trusted one is a difficult one. This article will help you in finding the right tenant for your home.
Potential Problems that can arise out of a tenant
- Not paying rent
- Not cleaning the home
- Abusing the resources like water, garden, etc
- Have too many home parties creating ruckus
- Use the home for illegal activity
- Demanding too many repair works from the owner
These are some of the potential problems that you can come across by choosing the wrong tenant. Now let’s see how to select the best tenant to overcome these issues.
Types of Tenants
Different types of tenants cause different issues. For example, a group of bachelor guys might party hard, not clean the home, etc. A single woman tenant might depend a lot on the house owner and that might keep you busy. A family might overuse and abuse the resources in the home. On the flipside, each type of tenant has their own set of merits too. For example, a group of bachelor guys will fetch a higher rent than a family. A single woman tenant will keep your home nice and clean. She will also pay rent on time in most cases. A family will look after your home like theirs. There is no hardcore rule in selecting the type of tenant, it all depends on your requirements.
If you prefer to earn a better rental income, then opt for bachelors. If you’re looking for a more peaceful atmosphere and reliability in rental income, a family will be a better option. So consider your own scenario and decide what works best for you.
Some tenants might have a physically challenged person in their family who might require a lot of medical attention. Just think if you’re fine with it before letting them. Some tenants will have a pet: mostly a dog or cat. If you’re cool with a pet, then no issues else discuss this clearly before agreement. If your home is a part of an apartment, then pet policy of the flats will also come in to picture.
There are two types of verification you need to do.
- Financial Stability: Ask where they are working? If it’s a reputed institution, then you might not worry about getting rent. You can also ask for their Salary certificate which they may or may not furnish.
- Background Verification: Make a friendly call to their landlord and enquire about their experience with the tenant. This will give you a lot of trust and clarity about your new tenant. Collect duplicate copies of important documents like Aadhar card, Ration card, etc.
Mode of payment and Agreement
Write a detailed agreement and get it signed from your tenant. Make all the terms and conditions crystal clear in the agreement. For a few extra bucks you can also register this agreement with the registrar office.
Negotiate the rental advance and collect it at the time of signing the agreement. Also confirm with the tenant what will be rental date each month and how it has to be paid either via cash, check or Netbanking transfer.
These are just few points to help you chose the correct tenant. In addition to all these, try to have a long face-to-face conversation with them which will give a lot more insights into their life. A good tenant will become a lifetime friend, so do spend time in finding the right one.