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The Dos and Don'ts of Tenant Placement

Updated: Sep 6, 2023

Finding the right tenant for your rental property is crucial to ensuring a smooth and successful landlord-tenant relationship. Tenant placement is not just about filling a vacancy quickly; it's about selecting a responsible, reliable tenant who will pay rent on time, take care of your property, and follow the lease agreement. In this blog post, we'll explore the dos and don'ts of tenant placement to help you make informed decisions and avoid common pitfalls.

The Dos of Tenant Placement

  1. Screen Thoroughly: Conduct comprehensive background checks, including credit reports, criminal history checks, and rental history verification. This helps you assess an applicant's financial stability and reliability as a tenant.

  2. Set Clear Rental Criteria: Establish specific rental criteria and apply them consistently to all applicants. This helps you avoid discrimination claims and ensures a fair and transparent tenant selection process.

  3. Communicate Expectations: Communicate your expectations, including rent payment due dates, maintenance responsibilities, and lease terms, to potential tenants. Make sure they understand and agree to these terms before signing the lease.

  4. Check References: Contact previous landlords to inquire about an applicant's rental history. Ask about their payment history, property maintenance, and any issues related to their tenancy.

  5. Require Renters Insurance: Consider making renters insurance a mandatory part of the lease agreement. This provides an added layer of protection for both you and the tenant in case of unforeseen events.

  6. Collect a Security Deposit: Always collect a security deposit, typically equivalent to one month's rent, to cover potential damages or unpaid rent. Be sure to comply with local laws regarding security deposits.

The Don'ts of Tenant Placement

  1. Discriminate: Avoid any form of discrimination, including discrimination based on race, religion, gender, disability, or familial status. Follow fair housing laws to ensure your tenant selection process is equitable.

  2. Rush the Process: Don't rush into renting your property to the first applicant who shows interest. Take the time to evaluate multiple applicants and choose the most qualified one based on your established criteria.

  3. Skip Background Checks: Never skip background checks or assume that an applicant is trustworthy without verifying their information. Skipping this crucial step can lead to costly mistakes.

  4. Neglect Maintenance and Repairs: Ensure your property is well-maintained and in good condition before showing it to potential tenants. Neglecting maintenance can deter quality applicants.

  5. Make Verbal Agreements: Always document lease agreements and important terms in writing. Verbal agreements can lead to misunderstandings and disputes down the road.

  6. Ignore Legal Requirements: Familiarize yourself with local and state landlord-tenant laws and regulations. Ignoring legal requirements can result in legal problems and fines.

Effective tenant placement is the cornerstone of a successful rental property business. By adhering to the dos and don'ts of tenant placement, you can minimize risks, select responsible tenants, and build a positive landlord-tenant relationship. Remember that a well-informed and cautious approach to tenant placement can lead to a more hassle-free and profitable rental experience for both you and your tenants.


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