These days finding new tenants is almost as hard as keeping good ones. Here are the top 3 traits that we look for in a tenant here at Connecticut Property Management. The quickest way to lose money as a landlord is to choose bad tenants. Have no fear; we’re here to give you our top 3 traits to look for in your next tenant.
What to look for in a new tenant:
1. Rental history
Is your prospective tenant an apartment hopper? Do they stay at an apartment for one year, then move on? Our ideal tenant stays for multiple years, often 3+. Vacancy related expenses are the most overlooked expenses in most profit and losses reports, but can be also be very significant. We average less than a 4% vacancy rate across our portfolio of properties under management in CT and MA. To keep this average down we give preference to tenants with a long rental history.
A general rule of thumb in landlording is to require a tenant to have income that is three times the rental amount. We generally recommend that it be the net, or “take home” income that is evaluated. Take a look at this article if you aren’t sure on how to calculate net income. Gross income is less relevant due to the deductions that come out of a paycheck such as 401Ks, health insurance, taxes, etc.
If you follow us on Instagram or Facebook you may have seen our post “Hire for attitude, train for skill.” The same can be said for tenants. We look for tenants that are easy to work with and communicate well with us and our staff. If a tenant is disrespectful during a walk through or during the screening process, they likely won’t be an ideal fit for us. We treat everyone with the utmost respect, and do everything we can to ensure that any of our vendors receive that same respect from tenants we place.
When looking for your next tenant, remember these three critical characteristics and you will find yourself ahead of the curve in finding your next great tenant! Need help or advice with finding your next tenant in Connecticut? Contact us!
Editor’s Note: Decisions regarding tenant placement should always be done in accordance with FHA laws. To review these laws, click here.