7 KEY TIPS FOR CHOOSING FUTURE TENANTS FOR YOUR RENTAL PROPERTY

Without a doubt, the purpose of any investment in "rental properties" is to generate regular monthly income. However, many investors, very concerned about the "numbers," neglect one of the most important pillars to achieve that goal, which is the proper selection of their tenant. And that is why many of them have had to face not only delays in rent payments but also damage to their properties.

Here are some tips for selecting the best tenants for your property:

• Prospects with verifiable income and a good credit history. It is very important to obtain from the applicant the necessary proof of monthly income and their financial capacity to timely meet the rent payment. On the other hand, avoid problems and dismiss candidates with low credit scores; low credit is already a condition that does not inspire enough confidence and reflects a history of defaulting on bills and other payments.

• Check the criminal background of the applicants. This verification can be done by reviewing the public records found in the Courts. Also, through the driver's license, one can know if the person has been involved in any criminal activity. You can also directly request the police report from the applicant.

• Request references from the last two landlords. It is advisable to ask the applicant for the contact information of their last two landlords to inquire, among other things, whether they were punctual with rent payments and whether their behavior as a tenant and neighbor was respectful.

• Ask the applicant the reason why they are moving from their current residence. Discussing this, in many cases, is a good strategy to understand if they have been evicted or if, on the contrary, they have a genuine reason for moving.

• Check their employment history. Frequently changing jobs is not a good indicator of job stability, which may affect timely rent payments; hence the importance of verifying the work history.

• Trust your instincts. If despite all the documentation being satisfactory, you do not feel comfortable with the applicant's behavior, it is better to dismiss them now in your selection process.

• Finally, remember to respect the Federal Fair Housing Act. According to this law, it is illegal to refuse to sell, rent, or negotiate a rental for reasons of race, color, religion, origin, nationality, gender, disability, and familial status. Familial status means that one cannot reject the application based on the fact that a person under 18 years of age will live in the property or that the applicant or another person who will legally inhabit the housing is a pregnant woman or that the tenant or tenants are in the process of adopting a child.