How to Find Renters: 10 Steps for Finding Tenants
Finding the right tenant may seem like a complicated process. Where do you start? How do you manage all the applications? And how do you choose the right renter? Learning how to find renters isn’t as complicated as it may seem.
In this Redfin article, we’ve got a step-by-step guide to finding tenants. From advertising your home for rent to accepting applications, you’ll learn it all. Whether you’re renting your home in San Francisco or your condo in Boston, read on to learn how to find tenants for your property.
1. Consider hiring a property manager or leasing agent
While not required, if you’re inexperienced with finding a tenant, hiring a property manager or leasing agent can help you find a renter. Property managers know the local market, have experience marketing a rental home, and can help you determine the right rental price. This can help reduce the time your property sits on the market – and help you find a tenant fast. You’ll have to pay a fee for their service, but it can reduce your stress in finding a renter.
2. Advertise your home for rent
Like you would when selling your home, you’ll want to advertise your property. There’s a lot you’ll want to include in your description. Here are some things you should include:
Compelling property description
Number of bedrooms, bathrooms, and any additional rooms
High-quality photos of the home and rooms
Monthly rent price
Date of availability
Your contact information (or property manager’s contact information)
There are plenty of ways to advertise your home for rent, whether it’s online or in person. Let’s take a look at some of these strategies.
For rent signs
Utilizing a “For Rent” sign is an easy way to attract tenants, especially if they’re looking to rent in your neighborhood. However, you’ll want to make sure to remove these signs as soon as a lease agreement is signed. Additionally, if you currently have tenants, make sure to alert them that you are putting the sign up as people may knock on the door to get more information.
Online platforms
There are plenty of online platforms where you can list your home for rent. Many sites offer additional features such as sending applications, screening tenants, lease templates, and more.
Social media
Posting your rental listing on social media platforms like Facebook, Instagram, and X (Twitter) can help attract new tenants. Consider asking friends and family to share listings to reach a larger audience.
Word of mouth
Telling family, friends, neighbors, and coworkers about your rental property can be an easy way to get the word out about the home.
Flyers
You can print out flyers advertising your home for rent or as a way to advertise any open houses you have. This can be a good strategy in small towns or neighborhoods, as it can quickly alert potential tenants.
Newspaper
Advertising your rental listing in a newspaper can still be a great way to attract tenants. This can be a great resource in smaller towns where newspapers are popular and easily accessible to residents.
3. Have an open house for your property
You may want to have an open house for your rental to show off your property to potential applicants. Or you can opt to have scheduled showings for interested renters. This allows tenants to view your property, envision themselves living there, and gives both parties the opportunity to ask questions.
There are a few tips to keep in mind when showing your house:
Make sure to highlight your home’s unique features.
Know your requirements and be prepared to speak to them – ex. screening requirements, policies (no smoking, etc), income-to-rent ratio, and minimum credit score.
Understand what you’re willing to negotiate – ex. fees, pets, and move-in date.
Familiarize yourself with Fair Housing laws and when it’s okay to reject a tenant’s application.
Keep each interaction the same, by asking objective questions, so you get a fair view of each tenant.
4. Pre-screening questions
You should have a list of questions to ask potential tenants. Building a good relationship with your renters starts at the beginning, so your questions should be well thought out. However, there are plenty of questions you can’t ask that violate Fair Housing laws.
Keep the following tips in mind:
Ask all potential tenants the same questions.
Avoid questions that may be considered discriminatory
Focus the discussion about the house and any amenities
Keep questions open-ended so you don’t imply the answer you’re looking for
You should also give potential tenants the opportunity to ask you questions. You’ll also have to follow Fair Housing laws in your responses.
5. Accept and read through rental applications
Once you’ve shown the property to potential renters, you’ll want to begin accepting applications. In order to keep the process objective and fair, you’ll want to have the same application for all prospective tenants.
Track the time and date you receive applications. Check for inconsistencies within the application and ask for further clarification if problems arise. As you sift through applications, make sure to keep a spreadsheet of all the applications, so you can compare qualifications or red flags.
6. Conduct tenant credit checks
One of the biggest concerns you may have when renting out your home is whether tenants will pay rent on time. You can verify their financial situation by running a credit check. A credit check shows a variety of things, including on-time payments, late payments, residence history, credit score, and any prior evictions and bankruptcies.
When evaluating someone’s credit report, keep in mind that a low credit score or past payment issues aren’t necessarily indicative of their current financial situation. A potential renter may have a lower credit score for various reasons – they recently incurred a large expense, they recently started building their credit, or they’re in the process of increasing their credit score.
You can also ask an applicant for a rental history report. This report allows them to fill in the blanks that may not be on a credit report. Some applicants who know they have a poor credit score may already submit a rental history report in their rental application.
7. Check renters’ references
Another way to learn about potential renters is to check their references. Quality references include previous landlords, employers, or other sources. It’s important to ask references the same questions to ensure you’re not being biased.
Questions to consider asking previous landlords:
Did you know [applicant]?
How long did [applicant] live on your premises?
Questions to consider asking employers:
Does [applicant] currently work for you?
[Applicant] stated they make $5,000 a month. Is that correct?
8. Run background checks on potential renters
Another important part of finding tenants is running a background check. Depending on the city and state you live in, running a background check may be prohibited, so make sure to familiarize yourself with local laws. If you have a background check on your applicants, you can discuss any potential issues with them. They may have appropriate explanations for what shows up on their record.
9. Determine the most qualified renter
Once you’ve gathered all the information about potential renters, you can determine which applicant is most qualified. Remember there are Fair Housing laws you need to follow, so there are plenty of reasons you can’t reject a tenant. Here are some tips to keep in mind:
Follow all city, state, and federal laws regarding renter’s rights.
Be objective and ignore personal qualities or first impressions
Compare applications fairly, by using objective criteria like credit score.
Don’t let your emotions influence your decision
10. Offer an applicant a lease agreement
The final step in finding tenants for your property is to offer a lease agreement. A lease agreement is a legally binding contract between you and your tenants. It covers monthly rental payments, maintenance, policies, and causes for eviction, among many other things.
You’ll also collect a security deposit, the first and last month’s rent, and any additional fees required in the lease. After you and your tenant have signed the lease, you’ll want to schedule a move-in date and rental walkthrough inspection. Congratulations, you’ve found a renter.
The post How to Find Renters: 10 Steps for Finding Tenants appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.
