Maximizing Your Rental Property’s Income: Realicore's Process for Finding High-Quality Tenants

As landlords ourselves, we know that a vacant property can sometimes feel like having an itch you can’t scratch. As enticing as it may be to quickly fill that vacancy and start cash flowing, you’ll need to properly qualify your potential tenants. In our experience, the biggest cost to being a landlord is having to evict a tenant that is either breaking the lease, has stopped paying rent or both! Either way, evictions are a messy and costly expense so it is important to get the right tenant in there from the beginning. If tenants are not properly vetted it could ultimately lead to potential headaches, legal issues, and financial losses. The search for a quality tenant may seem daunting, but with the right tools and strategies, it can be a rewarding experience.

At Realicore Property Management, we understand the importance of finding a reliable and financially responsible tenant. Whether you own a single-family residential property, multifamily apartments or a commercial building, our property management team has established specific criteria to qualify a potential tenant's ability to pay rent on time and their likelihood of taking care of your property. To ensure that you find the ideal tenant while complying with housing regulations, it is crucial as a prospective landlord to adhere to the Fair Housing Act and other relevant local laws. Rent control laws in California have changed significantly in the past couple of years during Covid-19. To stay in compliance will all of the new California rental laws, Realicore recommends hiring an experienced property management company like us to handle the compliance in regards to giving proper legal notice. In this article, we'll share some valuable tips and techniques to help you find the perfect tenant for your property. With the right guidance and preparation, you can turn your rental property into a hassle-free and profitable investment. Keep reading to learn how to find the most qualified tenants for your rentals.

First Impressions Matter

The old saying "you never get a second chance to make a first impression" holds true in the world of renting out property. It's essential to ensure that your rental property is in excellent condition without the need for repairs before looking for potential tenants. A well-maintained home is more appealing to renters, and it shows that you care about the property and the tenants who will live there. Taking high-quality photos that showcase the property's best features can attract good renters and ensure that your property stands out from the competition. Realicore offers a professional photo and videographer service to complete a full walk thorough tour of your property by making sure your rental property is presented it in the best possible light, you can increase your chances of finding high-quality tenants who will appreciate the property and pay their rent on time.

Protect Your Property

When it comes to renting out your property, performing background checks is a crucial step in finding quality tenants. By conducting background checks, you can gain insight into a potential tenant's history and identify any red flags that could indicate a problem renter. Checking for criminal history is particularly important, as you want to ensure the safety of your property and other tenants. It's always a good idea to check references as well, as previous landlords can provide valuable information on a tenant's rental history and behavior. Realicore Property Management takes this step seriously and performs a thorough background screening on all potential tenants. In addition to the screening, Realicore always calls at least two references to gain more insight into a tenant's rental history and behavior. By taking these steps to vet potential tenants, you can ensure that you find high-quality renters who will take care of your property and pay their rent on time.

Assessing Financial Responsibility

A credit check is another critical part of the tenant screening process. A good credit score is a sign of financial responsibility, which is essential when it comes to paying rent on time. A tenant with a credit score of 605 or above is considered to have good credit and is a desirable candidate. Realicore Property Management understands the importance of a credit check and performs thorough credit checks on all potential tenants. These credit checks can give a better understanding of a tenant's financial situation, including any outstanding debts, bankruptcies, or foreclosures. This ensures that you can find the best possible tenant for your rental property, who will be able to pay their rent on time and take care of your property.

Rental Record Review

When screening potential tenants, it's important to review their rental history to determine if they are a good fit for your property. A good track record of paying rent on time and taking care of the property can be an indicator of a reliable tenant. tenants with a history of evictions or late payments may not be the best fit for your property which is why Realicore Property Management has a strict policy against accepting tenants with eviction history. We also call the previous landlord to verify the tenant's rental history and to gain insight into their general behavior as a tenant, and how well they took care of the previous rental property. It's crucial to take the time to check landlord references to ensure that the potential tenant is a responsible renter who is likely to take care of your property and pay rent on time.

Securing Your Property

Requiring a deposit is a common practice in the rental industry that provides an added layer of protection for property owners. A security deposit is a sum of money that the tenant pays upfront to cover any damages or unpaid rent that might occur during their stay. By requiring a deposit, landlords can ensure that their tenants are financially invested in the property and are more likely to take care of it. Realicore Property Management follows this standard and requires a deposit equal to one month's rent. It is essential to clearly outline the deposit and fee requirements in the lease agreement to avoid any confusion or disputes later on.

Rental Income Requirements

It's important to ensure that your potential tenants have a stable source of income that can cover their rental payments. A tenant's income should be at least 2.75 to 3 times the monthly rent amount. This will help ensure that they can comfortably afford the rental property and make timely rent payments. Realicore Property management requires a gross monthly income of 3 times the amount of the monthly rent per household. We also verify the tenant's income through three months of pay stubs, contact with their employer, or tax records to make sure that they are financially qualified for the rental property.

Finding the right tenants for your rental property is a process that requires a significant investment of time and effort. However, it is well worth the effort when you consider the benefits of having reliable and responsible tenants who take care of your property and pay rent on time. By following the steps outlined in this article, or by hiring Realicore to follow them on your behalf, you can be sure that you are selecting the best tenants to ensure a success for both you and your new tenant. For more information on how Realicore Property Management can help you manage your properties click here.

Disclosure: This article was written as of 3/20/2023 and only applies to Realicore’s rental policies as of that date. Certain laws or requirements may have changed after that date and this article may no longer be applicable. For Realicore’s latest requirements please read our current property listings to see what a tenant must have to qualify. Realicore follows the Fair Housing Act in all of its practices.