What are some of the mistakes families/landords make when choosing a tenant??
Wednesday, June 9, 2010 | Comments Off
If you think that buying a rental/investment property ends when you purchase it your WRONG!
We specialize in helping families/investors purchase investment properties. I am not going to talk about choosing the right property and what to look for in this blog, I want to talk about how to choose the right tenant afterwords the purchase.
Here are some common pitfalls that many landlords fall victim of:
1. Tenant says “I have my own credit report can you use the one I have instead of pulling a new one?”
~This is one of the biggest mistakes you can make. The answer is NO! or I mean no sorry. Why would they have a problem with you pulling your own??? Most often its because they are hiding something. I have seen a lot of fake and/or doctored reports. DONT DO IT!
2. Not verifying income or better yet self employed with no way to document earnings!
~Dont cut corners and forget this step. If you cant verify they have a job then THEY DONT HAVE ONE! What if they default on the lease or thrash your home how are you going to go after damages?? A tenant is less likely to default or thrash your rental if they have a good job period. Most companies will require you to send in a form to verify this information.
3. Verify previous residence and if rent was paid on time.
~What if you cant verify the previous rent history? Its usually because IT’S BAD and/or they left on BAD TERMS! Most of the time the tenant will try and hide this history by putting on the application that they lived with a friend or relative when they actually didn’t.
This just scratches the top of the ice burg. As you can see from the items above this isn’t Rocket Science people!…I think a lot of times new investors get so excited about the purchase they forget about the importance or screening the tenant and just want a tenant in right away without taking the time to pick a good one. If you purchase a investment property through me I will not only find a great property I will assist you in the rental process or if you want to take the next step I can property manage it for you for a fee. We property manage exclusively for our clients and do not advertise this service to the public.
Best Regards,
Anthony Pigati
Direct: 925.777.0530
