If you intend to create passive income from your house by renting it out, the most important step will be to choose the renter who will reside there. Hoppler, an online real estate marketplace, provides a few pointers to consider while choosing a tenant.
Determine your non-negotiable requirements. If the potential renter fails to satisfy even one of those requirements, you can respectfully decline his application. Given the legalities and potential property expenditures – notably repairs – in the future, it is only natural to want to do what is best for you and your house. Without criteria, you may find yourself with a problematic renter, putting your house at risk.
Conduct a background check. A phone call to an employer or the present and former landlords of your prospective renter will help answer any important queries you may have. The initial meet-and-greet may be easy, but don’t be too satisfied. Take the time to learn about your possible tenant. Consult his references to learn about his rental history and to check that he has not skipped out on a lease. If he is concerned about a background check, go on to the next prospect. Finally, keep in mind: no background check, no keys.
Check their source of income. It is only natural to inquire about the income of your prospective tenant. Similarly, his job history might reveal information about his career and financial security. If he changes employment frequently, consider if he can afford to pay rent. If his previous landlords say he pays on time, he is a strong contender. Your prospective renter should have a monthly income that is at least three times the amount of your asking rent.
Find a real estate broker. A real estate broker may relieve you of the worry of paperwork and locating suitable tenants. He can acquire leads for your house through his pool of clients and through his network. Furthermore, for technical knowledge such as the typical rental rate in your area or real estate legislation, a broker may be of tremendous assistance.
Please take your time. Finding the ideal renter for your house may take many days or weeks, but you should never feel forced to accept an offer from a too-good-to-be-true potential tenant. Instead of picking one at random, analyze all of the applications and pick the one that most closely matches your requirements. Don’t just give up. If you have a gut feeling that there is a better renter out there, postpone your selection until you locate the greatest one. Choose the person who is easy to work with.
The Philippine Property and Investment Exhibition (PPIE), the biggest, longest-running and most trusted Philippine business and investment forum in the Middle East, is now on its eighth edition, which will be held this November 5-6, 2022 at the Crowne Plaza – Sheikh Zayed Road.
The past seven PPIE editions made history in the UAE and the Gulf region by bringing in over 24,500 quality visitors.
