Owning a second home as an investment property is a great way to earn a passive income, but you must have reliable tenants. When they’re effective communicators and budget their expenses properly, you can trust these individuals to take care of your second home. To find the best renters for your investment property, look out for these characteristics in their housing applications.
Stable Income
A stable income guarantees that renters have the financial means to meet their housing obligations. Typically, tenants should earn at least three times the rent in monthly income to live comfortably in a rental property. To determine their income, request recent pay stubs, tax returns, or bank statements.
Strong Rental History
Good renters often leave behind a trail of positive rental references. If they lived in rental properties previously, check their application for prior landlords’ contact information. Ask about their payment history, how they maintained the property, and whether they caused any disturbances.
Clear Communication Skills
Renters who respond promptly and clearly to emails or calls are more likely to keep you informed about property-related issues, such as repairs or lease updates. During the application process, take note of how they interact, and ask them about their preferred method of contact to gauge future communication.
Consider the Types of Tenants
Finding the best renters for your investment property is easier when the residence includes specific features catered to a certain demographic. Plenty of tenants are looking to rent, so structure your home to fit their needs accordingly.
Older Adults
Many retirees are responsible individuals who seek quiet, comfortable homes to enjoy their golden years. Housing appropriate for older adults should include accessible features that make navigating easier.
College Students
If your property is near a university, it will primarily appeal to college students looking for off-campus living options. Create clear lease terms regarding responsibilities and offer features like large study spaces to cater to tenant needs.
Young Professionals
With a job lined up in the area, early career professionals are typically looking for a residence closer to their new workplace. As you list your home, point out the local neighborhood shops and the transportation options your renters could use.