To select good tenants, well couched strategies must be put out in order to seive out the bad ones, since landlord always opt for problem-free tenants who are well-behaved. A renter (also called a tenant) who regularly pays their rent without missing any payments is what many landlords consider to be a good tenant. Attorneys categorize good renters (tenants) in the same way.
To select good tenants for an accommodation, the following should be considered;
Previous Relationship with Potential Tenant:
One of the things landlords have to deal with is choosing the appropriate individuals to be involved in tenant selection. Sometimes the potential tenant turns out to be the landlord’s relative or close friend; in these instances, the landlord should resist giving in to avoid a conflict of interest or compromising on regulations or standards that are already in place. Can you imagine allowing your best friend to reside in a home financed by bank loans?
It could be challenging to get rid of him and you might even need to take him to court if he doesn’t pay his rent. Because of this, many landlords employ estate managers, who take full responsibility for managing tenants and renting out properties without displaying fear, partiality, or emotional attachment. This is the only way the landlord can amortize or service his loan regularly.
Administration of “Know Your Client Form”:
The majority of reputable real estate firms use what is known as the KYC form to obtain data about possible tenants. The primary objective of this form is to assess potential tenants and ascertain whether or not they are a suitable fit for the rental property. The contents of the KYC form include the tenant’s name, contact details, phone number, business type, business address, designation, state of origin, nationality, village, local government area, gender, marital status, email address, size of household, previous address, name of previous landlord, reason for relocation, passport photo, photocopy of any form of identification, preferably national ID, health status, guarantor name, relationship with guarantor, guarantor address, phone number of guarantor, and signatures from both the potential tenant and the guarantor.
The KYC form is a lengthy document that gives a synopsis of the qualities of the applicant. The main goal of the form is to offer a reliable database for further study or in case of an emergency. Additionally, the information on the form would be valuable in drafting the tenancy agreement.
After the KYC form is administered, the information is reviewed to make sure it is correct. You can call the phone of the former landlord to learn more about the potential tenant. Moreover, you may confirm the company name’s existence by looking it up on Google or other reliable internet directories. If the individual is a student, try to confirm that the details provided match the real circumstances. You should double-check the provided information to make sure it is consistent. If this is done correctly, there’s a good chance that the position and suitability of the potential tenant will be found.
Administration of Rules and Regulations:
Giving up the property’s liability insurance or policies and procedures is necessary for this. While not all landlords employ this technique, it’s a prudent place to start so that the tenant is aware ahead of time and may avoid uncomfortable questions later on. As a result, you should take your time drafting the regulations to ensure that they complement the features that are offered for rent on the subject property.
It is generally advisable to present an offer letter to prospective tenants after completing the previously described stages. Because it stops claims for refunds after the rent needs to be exchanged or deposited into the landlord’s bank account, an offer letter is essential. An offer letter contains the following details: the property’s address, a unit’s description, the terms of renting or leasing the unit, the type of tenancy, the length of the tenancy, the agreed-upon rent, the legal and agency fees, the caution deposit (refundable or non-refundable), the service charge, and any other relevant information.
There won’t be a reimbursement of the money paid if the prospect accepts the offer and pays until the conclusion of the tenancy. There are a few exclusions, though.
Content of Tenancy Agreements:
The tenancy agreement is the legal document that gives the landlord and tenant permission to start a tenancy. Usually, it is completed before granting potential tenants access to the property. The contents of the tenancy agreement include the following: the date; the landlord and tenant’s names and addresses; the address of the property to be rented; a description of the accommodations; the type of tenancy; the length of the tenancy; the amount paid in rent; the date the rent was paid and receipted; clauses outlining the landlord and tenants’ obligations and responsibilities; the witnesses of the landlord and tenants; the signatures of the tenant and tenants’ guarantors; etc. Ensure that the terms of the tenancy agreement contain the rules and regulations.
Make sure the information provided by the guarantors is not being given via proxy. Once more, most people would rather use friends and acquaintances as guarantors, but they have to show up in person. This is not safe; knowing who to call in case of emergency or if the tenant is unreachable is crucial. Therefore, it is highly recommended that guarantors be either immediate family members of the signing or, in the case of civil servants, their directors or superiors. Verify the guarantor’s financial stability (i.e., whether they belong to the working class) in case of an emergency or debt (disease or accident).