Those who own Malibu rentals know how important it is to find good tenants. Good tenants pay their rent on time, making it possible for you to earn an income from your real estate investing activities. Timely payments also make it easier for landlords to pay their property taxes and maintain their properties. Good tenants also take care of their apartments and adhere to the terms of their lease agreements. There are several steps a landlord should take to find the best tenants for a condo or apartment.
Advertise in the Right Places
Many landlords make the mistake of trying to cut costs by advertising in the cheapest publications possible. While reducing expenses is a smart business move, some of these inexpensive publications attract readers who might not make ideal tenants. Invest in local newspaper advertising or advertise your rentals online. This can prevent you from having to screen out dozens of unqualified tenants.
Make Your Requirements Clear
If you publish a vague ad with your telephone number or e-mail address, you might get responses from dozens of people you would not want as tenants. Make sure your advertisement is very clear about what you expect. If you will only rent to tenants with good credit, specify this in your advertisement. If you do not allow pets, make sure you include this in any advertising materials. This can help narrow down the number of people who contact you, making it easier to screen those who qualify.
Marketing the Property
How you market your Malibu real estate actually has an effect on the quality of the potential tenants who will contact you. If you take the time to describe the property and post good photos of the unit, you may attract responsible tenants who pay their rent on time. If you post pictures that show an apartment in need of repair, responsible tenants may not want to waste their time contacting you.
Interviewing Potential Tenants
Renting an apartment without meeting a tenant is one of the biggest mistakes you can make as a landlord. Interviewing potential tenants gives you some insight into how they will behave if they rent from you. It also gives you an opportunity to outline the terms of the lease and let potential tenants know about any relevant restrictions.
Background Checks
If you own several units in the Malibu real estate market, you should conduct background checks on every tenant you accept. This reduces the risk of a bad tenant damaging your property or committing crimes against other people in your buildings. You should also conduct a credit check if you are concerned about a tenant’s ability to pay rent on time. Credit checks can reveal if a potential tenant has a history of late payments or any civil judgments on their records. Getting this information can also help you decide between two tenants who seem equal in all other respects. If one person has excellent credit and other has only good credit, you might want to choose the person with the better credit history.
Russell Grether of Compass Real Estate is a real estate agent based out of Malibu, CA. He specializes in Malibu real estate, Malibu homes for sale, Malibu properties, Malibu Land for sale, Malibu rentals and surrounding area real estate from Montecito to the Pacific Palisades.
