Guide to finding tenants for a rental property in 2024

When an owner rents their property, it is their responsibility to find a good tenant. Finding a good tenant is an important process because they will be responsible for the ongoing condition of your home. Reliable tenants will pay their rent on time and take good care of your home. This guide will assist you and provide a step-by-step process from finding a tenant to selecting one.

Table of Contents

Meaning of rental property

A portion of land that is owned by a person or organisation and leased to tenants is referred to as rental property. It can include a range of properties, such as commercial, residential, and speciality rentals. Particularly, houses that are bought by an investor and leased to tenants under a lease or other rental arrangement are referred to as residential rental property.

How to find tenants for a rental property?

First impression of property

Initial impressions of the property are very telling. When it comes to renting out your property, it is an obvious step. Many people don’t realise how important this process is and instead ignore it. Your house can look better if it is cleaned. It is advised to look at properties that are for rent in your area that serve the same purpose as yours in order to set it apart from competitors. Examine all of your options, then determine how to make your house stand out from the competition so that tenants will move in quickly.

Decide the rent

A critical step in which a tenant can make a decision in a few seconds. Rent prices should be competitive enough to attract tenants and be comparable to other properties on the market or in nearby areas. The owner’s mind should be clear regarding rent. The rental price is determined by a variety of factors, including location, area, size, available amenities, condition, and neighbourhood. Before deciding on a price, you should first define your target tenant category. For example, if you are looking for tenants who are students, the rent should be optimal; if the tenant is a family, the rent can be set accordingly.

Photos and videos

Tenants will be shown the part. The photos of your home must be high quality and in portrait mode. It is best to use natural light to photograph it. There should be photographs of every room in the house. To take it a step further, creating a home tour video with proper narration and voiceover can be an appealing way to impress tenants. This will not only clear up any confusion and improve communication, but it will also allow them to correctly interpret information about the house. The video should be in landscape mode.

Create an attractive description

Create an appealing description for your home, as well as clear instructions and information. This description must include a home key feature, the type of tenants you are looking for, the size of the property, the location, the amenities available, and more. The owner must ensure that everything is written honestly and that the tenants have the appropriate expectations.

Marketing

The next step is to create a proper reach for the home among potential tenants. It can be done both online and offline.

Online

It can be posted online in a variety of locations, and there are numerous online resources available to assist you with this. Listing your home for rent allows you to reach a much wider range of tenants than you could offline. Owners can also pay to advertise their online publications and tailor their ads to a specific location. It will help you get the most exposure. To avoid confusion and mess, the owner should ensure that any advertisements or posts include a proper and clear address and phone number.

Offline

There are numerous ways to advertise it offline. It includes putting a “for rent” sign in your yard or pasting posters in local businesses, stalls, and areas near your home.

Pre-screening interested parties

Pre-screening will ensure reliability. The owner can get an overview of the tenants. Owners and tenants should also feel free to ask any questions they may have about rent. Every guideline and rent should be clearly stated on the paper agreement. Screening entails reviewing credit reports, rental history, employment verification, and criminal background checks. Verify your employment and income, and then contact your references.

Be professional and responsive

The time of both parties is equally valuable. Both should be professional and responsive. There should be a clear and fast communication channel between the owner and the tenants. The owner should respond to all tenants’ inquiries. And both parties must be clear about their rental needs and expectations.

Build a good landlord-tenant relationship

Once the tenant is chosen, there should be no communication breakdown between them. They should have a healthy, open relationship. The environment should be comfortable for the tenant.

Precaution while finding tenants

Future misunderstandings can be avoided by having a well-written rental contract that signifies out each party’s obligations and rights.
Familiarise yourself with all legal regulations regarding tenant screening in your community.
Use a reputable background check service to verify employment, income, rental history, and any criminal records.
If something feels off about a particular applicant, don’t be afraid to move on.
Avoid discriminating against people on the basis of their race, religion, national origin, gender, sexual orientation, disability, or family situation.
Always confirm their identity and financial information beforehand accepting any kind of payment.

FAQs

How often should I inspect the rental property?

It can occur once a year, every six months, or even every month. It depends on a number of factors. On average, it should be inspected every 16 weeks.

Can I increase rent during the lease term?

In general, rent cannot be increased during the lease term unless the lease agreement specifically allows for it.

What are the special provisions that allow for rent increases during the lease term?

Some lease agreements may include a clause that allows for a rent increase at a specific point during the lease term. This clause will usually include the date of the increase, the amount of the increase, and a method for calculating the increase. In some rare cases, a lease agreement may permit a rent increase if property taxes or utilities rise significantly.

How to offer incentives to qualified tenants, such as a rent discount or a free month's rent?

You can provide a flat discount off the monthly rent for the duration of the lease, a declining discount for the first few months, or a cash bonus to tenants who sign a lease within a certain timeframe. This may generate a sense of urgency that promotes quick decisions.

How can I locate tenants in my neighbourhood or close to my house?

Partner with local businesses to provide gift cards or discounts to restaurants, shops, and entertainment venues for your tenants. This can be a thoughtful way to welcome them from the neighbourhood.

Is renters' insurance necessary for tenants?

Renters’ insurance is not mandatory for tenants, but it is highly recommended.

What should I do if a tenant damages the property?

Assess the damage and check if there are any specific clauses related to damage in your agreement. Contact the tenant right away and inform them of the damage. Discuss the situation calmly and professionally, avoiding accusatory language and focusing on finding a solution.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected]

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Sanskrati Gupta

Sanskrati Gupta is an economics major currently pursuing her studies at Delhi University. She likes to explore world topics and share her thoughts and analysis through her writing.