Having an income property in the Shuswap real estate market can be incredibly rewarding. As a tenant assists with paying down your mortgage, you reap the benefit of building equity – and the opportunity to use that equity to purchase another home for further investment advantages too.
Here are five smart questions you should be asking every potential renter of your income property to ensure you’ve vetted for quality and respectful tenants:
What’s influencing your decision to move?
This gives you a glimpse into factors influencing their move, so you can make sure the house is a good match for them. It also provides insight into the potential length of time they plan on renting from you. For example, if they are relocating to be closer to family or want their children to go to the school nearby, they may be in it for the long haul.
Who will be living here with you?
The answer to this question allows you to determine if they have a partner, any pets, or if they expect any regular visitors; such as shared custody of their children, who may be staying at the home every other weekend. It also gives guidance on who should be on the lease agreement, as it’s a good idea to have all permanent residents listed.
Are you able to provide a current credit report?
A good rule of thumb is to have the potential tenant submit a current credit report with their rental application. This gives historical evidence of their payment patterns, and ensures they don’t have a large amount of debt where paying rent may become a problem.
Have you ever previously missed a payment or broken a lease?
Naturally as common sense, it’s a big red flag if the potential renter’s answer is yes, unless there was some kind of extenuating circumstance to be noted.
Would I be able to call your current landlord as a reference?
Validating their current relationship as a tenant is an important component of the tenant screening process. If permission is given, this question assists in determining the relationship they have – which may translate into a similar experience for you.
Don’t forget to open the floor to allow your potential tenant the opportunity to ask you questions as well. This creates conversation, so mutual respect can be built, which can help lead to the tenant taking better care of your property while they’re living there.
If you’re ready to jump into purchasing a property, I’d love to start you on the right path with a mortgage pre-approval and shopping budget. Let’s connect,
𝗖𝗵𝗮𝗱 𝗘𝗹𝗶𝗮𝘀𝗼𝗻⠀ 📞 250.804.9874⠀ 📧 email@example.com⠀⠀ 🌐 http://www.chadeliason.ca