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Rental property owners must balance the risk of having their house standing empty or having less-than-desirable tenants occupying it. Too many landlords have fallen victim to terrible tenants in their haste to secure a rental income.
This problem often befalls newcomers to the market who are still learning the rental property ropes. However, help is at hand for Nashville landlords who can hire a property manager to find the correct tenants. Here is some advice for property owners looking for tenants:
Tenant vetting
Investigating would-be tenants and conducting background checks is time-consuming but could save landlords a lot of heartache and trouble in the long run. It is a function that reliable property managers in Nashville, Atlanta, Detroit, Little Rock or Fort Collins are familiar with and handle as part of their everyday business. When choosing a property manager, landlords can opt to work with large companies like Coldwater Banker Richard Ellis (CBRE) or Greystar Real Estate Partners. An alternative is working with local Nashville-based businesses, such as Oxford Property Management and Village Property Management.
Evernest is a growing property management company with offices in Nashville. The company has a reputation for offering professional services to its clients at reasonable rates. Agents at this company strive to match potential tenants and landlords and act as a middleman between the two parties to facilitate a cordial, mutually beneficial rental relationship.
Determining a tenant’s suitability
Most landlords dream about having long-term tenants who pay their rent on time and look after their property. Such renters might sound like proverbial unicorns, but they do exist. Landlords just need to know where to look for them. When researching a tenant’s background, start with money matters.
The applicant should have a steady income that the property owner can verify to ensure they can afford the rent. Request a credit report to determine if an applicant is debt-burdened and how responsibly they behave in financial matters.
The following aspects of an investigation relate to a would-be tenant’s behavior at previous residences. Insist that they supply landlord references with their applications. Contact their previous landlords to determine whether they were good tenants, remained polite and respectful to neighbors, did not do undue damage to the property, and never faced eviction proceedings. As a final measure, research whether the applicant is known to Nashville law enforcement authorities for lewd or dangerous behavior.
Attracting suitable tenants
If landlords set about recruiting tenants correctly, they can easily ensure that they get reliable renters. Advertising is an essential component of attracting tenants to a property. Most property owners and rental agents stick to online advertising platforms as almost all would-be renters start their search for a home there. However, some have had success advertising in local Nashville newspaper publications.
The quality of an online listing will go a long way toward attracting desirable tenants. A listing should include professional photographs of the house and its best features. It should also have a well-written description highlighting what makes it a great home to rent. Include a statement in the advertisement saying that all applicants will be vetted to deter chancers from applying.
Ensure the price is right
People likely to push their luck and the boundaries of a rental agreement tend to look for below-average rental prices in a neighborhood. They assume that the property owner is desperate for tenants and will not do any requisite checks. While that might not necessarily be true, they may interpret it that way.
When setting a rental price, clever landlords always look at how much other Nashville property owners are charging in a specific suburb or neighborhood. This prevents them from over-or underpricing their rental home. Overpricing will also deter tenants from applying to rent a house as they can get a similar home for less from another landlord.
Create a fair contract
A lease agreement should cover as many rental eventualities as possible. It protects both landlord and tenant and guards both parties’ rights while laying out their responsibilities.
As a binding agreement, a contract should be legally binding, giving a landlord access to legal remedies if tenants do not keep up their end of the deal and vice versa. Do not use standard rental agreements from online sources without reviewing and amending them to suit the specific rental context.
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