As a landlord, you should always be wary of a bad tenant as you know that once a person or a family moves in, asking them to evacuate can be time and effort consuming, not to mention, costly. However, there are some measures and precautions that you can take beforehand to ensure that you never end up making a bad deal that you would regret later on.
According to a recent report by My Smart Move, residents' credit scores have continued to decline over the years, with an average score of 650 in 2017 showing that renters have become less credit-worthy. Furthermore, 36.6% of U.S. households are renting their homes, plus in 66% of housing markets, buying is more affordable than renting.
In light of this information, let's take a quick look at some of the ways landlords, like you, can protect themselves in the present times.
1. Get familiar with the law.
When you buy a new property, you should know all property standards, laws, regulations, and codes of compliance that govern homeowners. All of them must be met, and there should be no discrepancies.
2. Create a safe living environment.
Have your property checked through a professional inspector so that when a tenant does move in, they have no reason to complain about any hazards or mishaps that they could point towards your direction.
3. Make sure you have the right insurance coverage.
Even if a tenant who seems reasonably sensible and mature moves in, they can still damage your property and label them to unforeseeable circumstances. This is why insuring your property is a must as this allows you to have the coverage necessary to recuperate if something terrible happens.
4. Don't underestimate the importance of tenant screening.
There is simply no way that you can go about accepting tenants based only on their application. You have to dig deeper as properties aren't cheap, and therefore you must know who exactly is moving into your house. Hence screening tenants is a must.
5. Keep tight records.
Keep all necessary records as tightly as you can to ensure your trust and credibility in the system. When and if the time comes, these documents can come in extremely handy to get you out of a tricky situation.
Samantha Kaylee currently works as an Assistant Editor at Crowd Writer, a platform trusted by students for buying academic writing services UK at reasonable prices. During her free time, she likes to practice life-hacks and indulge herself in the stress-relieving art form known as doodling.