The rules for choosing your future tenant
Rental investment can be a very good financial opportunity as long as the tenant is reliable. A successful tenant will effectively treat your property with the utmost care, be transparent when alert points appear in the apartment or house, and ensure you do not have to incur unpaid rent. Thanks to this choice, you will be able to sleep more peacefully and be relatively serene on the good progress of your rental project. This article gives you some techniques and rules to respect in order to select the right tenant.
What questions to ask when choosing the right tenant?
A rental investment is generally based on the repayment of an acquisition debt that is made through the rents received. Thus, your risk as an investor lies in any unpaid rents that would require you to make a larger cash outlay on the tenant's default month. Choosing a reliable tenant, also protecting you with a joint surety, will allow you to greatly reduce the financial risk incurred on your real estate project.
The requests of an owner to his future tenant are clearly framed and it is advised to respect the rights of the potential tenant who could initiate procedures if necessary. Thus, the various documents requested or the different questions asked must make it possible to answer four major questions, namely:
Determine the precise identity of the future tenant. To do this, the owner can freely request an updated ID and stop the procedure if the potential tenant refuses to provide it. On the other hand, as the owner, you must be careful not to ask private questions to the tenant. Questions about marital status, religious beliefs or sexual orientation are very clearly prohibited. On the other hand, applications that have a link with the future occupation of the apartment, such as whether he is a smoker or plans to live alone in the apartment, are allowed.
Determine the current dwelling place of the future tenant . As the owner, you are perfectly legitimate in your desire to know the current place of residence of your interlocutor and for that to ask for a proof of domicile to day.
Know your professional activity . With payslips and a contract of employment, you may be able to have the name of the employer and the type of employment contract of your future tenant.
Estimate its resources . Thanks to pay slips or income certifications (furniture, land or other), you are perfectly entitled to know the income received by your tenant. The determination of these incomes will allow you to measure the financial risk that it can represent as well as its capacity to assume financially the rent that you ask for. As a result of this assessment, you will be able to limit the risk of unpaid rent by selecting a tenant profile that earns revenue that is consistent with the amount of rent.
The method to follow to select your future tenant
Several stages mark the selection of a tenant to guarantee a low level of risk to your rental investment. First of all, it is essential to go through a document collection phase that will first allow you to see the tenant's ability to provide you with accurate documents in good condition. From these, you can then make a pre-selection and check the consistency of the different elements. For example, if the tax notice is not consistent with the announced income, you may have doubts about the veracity of the plaintiff's comments. Finally, the most important step in the selection of a tenant is the appreciation of the human relationship and the exchanges you may have with the tenant. By its way of presenting itself, its reactivity and its politeness, it will be easy for you to define quickly the profile of the tenant.
By using all of these precautions, you will, without a doubt, be able to limit the risk of unpaid rent or other worries from your future tenant!