TENANT SELECTION AND PLACEMENT
“I
just want him out of my house. He is such a nuisance to his co tenants. He is
too loud and to make matter worse his “boys” (shop apprentices) are so unruly
and disregards the other tenants. Tenant turnover is high” Said Mr
.Quin who invested a huge part of his retirement benefit in the development of
a block of flats in a highbrow area of
the mainland with the aim of
enjoying rental income from his investment.
Perhaps
the most important decisions you will make as a house owner is whom you select and
accept has your tenant.
Tenant
selection and placement is ensuring a square peg fits into a square hole.
Getting
agents to advertise or placing adverts by yourself is not just what brings good
tenants. Tenant selection is a serious business that is time-consuming that
involves taking prospective tenants on an inspection of the house. You will
need to show a house several times, probably at the prospective tenants’
convenience, before you find tenants who are seriously interested in the
house and have financial capacity to pay the rent.
In
selecting a tenant, you are to be sure of the following:
Does the tenant fit?
The
type/class of house you put up for rent should determine the type of person you
select as tenant. As in the case of Mr. Quine, this particular tenant was
selected because he had a thriving business in Ladipo market without
considering the other tenants’ mix who were corporate executives with nuclear
families. Even though the ability to pay future rent is key to rental sustainability,
the tenant must also fit the house and the other tenants. The tenant in
question even though was fit financially was not appropriate to the house.
Not properly screening tenants can lead to significant issues. That can
affect the peaceful coexistence of tenants and can even run down the rental
value of such houses. For example, a tenant that converts a place of residence
to a place of worship or beer parlor will definitely create a problem. Do your due diligence to protect your
investment.
Doing background research can be a time-consuming and arduous process, but
it is necessary to find a quality tenant for your house. Though this background
search is hardly done in this part of the world, it is highly advised.
Financially
fit:
Must
be seen to be backed up with the ability to pay rent and observe other
financial obligations in relation to the house. There is no harm in Verifying the prospect’s
employment and place of work (even though this does not guarantee the ability
to pay future rents) but at least one
can empathize with the tenant in case of any eventualities.
Often
the problem of managing a house/building is caused by difficult or
uncooperative tenants. So it is therefore important that painstaking effort is
made at ensuring quality tenants who are suppliers of investment income from
rental houses.
credits: http://www.realpropertymgt.com/landlord-center/tenant-selection/.
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.
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