Getting the perfect Tenant

With the rise of sale in properties for investment, rentals have become an attractive source of passive income for a lot of home owners. The process sounds simple; buy an affordable residential flat in Bangalore and get a tenant to occupy it. It ain’t that simple. Finding a good tenant is probably the most challenging aspect of this entire process. A wrong tenant can be a huge liability rather than an asset. They will give rise to a whole range of problems ranging from not paying on time to damaging your property. So ensure that you check the following boxes before finalizing on your tenant.
Payment capability
First and foremost, is your potential tenant financially capable of paying the rent on a monthly basis? Many people tend to believe that they can afford more than they actually can. A good benchmark to gauge payment capability is to ensure that your tenant’s monthly income is at least three times the rental amount.
Credit check
With the permission of your potential tenant, make sure you check their credit history before you go ahead and finalize. The better the credit history, better the chances of your tenant making payments on time. You may have to pay for a credit check, but it is worth the trouble.
Background check
This is equally important as you will get an idea about whether the potential tenant is involved in any legal hassles, or whether they have a history of changing jobs too often, which means a long-term stable income is questionable. A social media background check is also recommended. There are companies which charge a fee to run such background checks, and it is worth your money to get it done. The background check is a very crucial step as it can open up various other details about the potential tenant, like if they are involved in any illegal activities like drugs, etc. it can also provide insights into how clean or orderly the person is in daily life. In all likelihood, that is how they would maintain your house.
Reference check
Ensure that at least one of the references provided is a former landlord. Run a reference check to find out the payment behavior of the tenant and how they left the house while vacating.
No tenant will be perfect, so you need to decide on how much you are willing to compromise, depending on the availability of tenant applications.