Even the best rental properties don’t show their true value until the are being rented by the right people. Learn how to find the right tenants in our latest post!
Having the right tenants for your Chicago investment property is critical to your success. Tenant turnover, damage, unpaid rent, and violations incurred by your tenants can severely eat away at your profits. No matter how great your property is, your profit potential can be severely impacted by who you have living there. Below, we offer strategies to help you find the right tenants for your property in Chicago!
Many investors will cut corners on background checks to save time, money, or both. Maybe the person moving in is a friend, a family member, or a friend of a friend, so they don’t feel as if running these sorts of checks is necessary. This can prove to be a huge mistake for the investor. Things like evictions, debts, criminal history, and employment information are all important to know about when allowing someone to move into your home. There are several professional services out there that will run these checks for you. Find one you trust and who can provide you with information in a timely manner. While there is a cost for these services, the fees are insignificant compared to what the results can tell you about a person. Even if you know the potential tenant personally, don’t make the mistake of not checking them out thoroughly before giving them the keys to move in.
When renting out your property, it’s important to know a bit about the people moving into your house. Aside from running the standard background checks, you will want to check out a few of their personal and professional references. Their previous landlords will be able to give you valuable insight as what to expect from your potential tenant. You will be able to get a feel for what they were really like as a tenant, how they treated the property, how they treated their neighbors, and if they were ever late paying rent. They can tell you how the move-out process went so you get an idea of what to prepare for.
You can also ask for other references such as an employer, personal acquaintance, or anyone else who can help to vouch for their responsibility and character. Make sure their references are valid and take notes with each person you speak to. If you are considering multiple tenants, it can be tough to keep track of everyone you speak to.
Know Your Audience
As a landlord, the ultimate goal is to attract high-quality, long-term tenants. Take a look at who is renting in the area, what they are paying, and how long they are staying. You’ll have to analyze the data yourself or work with a local expert to get an understanding of the rental market. Then. focus your marketing efforts in their direction. If there are a lot of families renting in the area, highlight the fenced-in backyard. If there are young professionals looking to rent, focus on how much there is to do and how easy the commute will be.
In order to find the right tenants for your Chicago property, you’ll need to do a little extra work. However, the extra effort upfront will pay off immensely over the long term. When you find responsible, upstanding tenants who love where they live, you will be able to create long-term tenancy that can secure your income for years to come.