Whenever an investment is made we expect to see fruits out of it. Every landlord expects to find a friendly tenant, punctual with payments and who will take good care of the property.
Success in this type of business is based on the correct choice of a tenant otherwise an ordeal will be experienced until the end of the contract. It is important to be clear about the homeowner who is responsible for choosing the right tenant.
Now, all people are different, so there is no “magic medicine” to treat bad tenants. However, the use of the following tips can help.
Analyze the tenant’s solvency
Renting a house is similar to making a money loan with the bank. It is important to ensure that the person can pay, a bank guarantee can be requested to respond to any debt left by the tenant.
Experts estimate that the debt capacity limit is between 35% and 40% of monthly net income. This is the maximum capital for which a person can borrow without compromising their financial integrity. That is, the result of the subtraction of total income and fixed expenses in a month.
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Based on the previous appointment, you can rule out those tenants in which the rent plus other debts exceed 40% of the person’s salary. It is recommended that the rental value be less than 25% of the tenant’s income to ensure that his financial integrity will not be compromised.
In addition to the level of indebtedness of the tenant, it is worthwhile to evaluate other obligations of the same as family support. Request a monthly payment in advance and a monthly deposit guarantee. It seems excessive first entry but in case of default or destruction it may be insufficient.
Assess the seriousness of the tenant
Economic solvency is not everything in rent. A tenant with strong income does not guarantee this is immune to financial difficulties. It is important to carefully analyze the tenant, his job stability for example. Also, contacting the previous owner could be a great help.
On the other hand during the interview, body language voice tone can say much more about people. In addition to this, the use of social networks can give us a clear picture of the person’s lifestyle.
Analyze the personality
Whenever a person is going to be accepted in our property, it is important to analyze the personality. This will save many headaches and misunderstandings.
It is recommended to lease the property to a quiet person who knows how to listen as this will facilitate coexistence and problem solving. Avoid explosive or strong temperament personalities, those who only talk about themselves and those who seem not to pay attention or do not receive messages.
Renting a real estate is a high risk loan, which can be controlled by taking the necessary precautions. As mentioned at the beginning there is no magic medicine that eliminates all risks, but with caution you can assess which risks are those that can be taken and which ones are best avoided.
