Due Diligence
As the rental market slows down we must remind ourselves of the importance of due diligence during the tenant screeding process.
We are finding the potential applicants attending showings look like good prospects, they paint a favourable picture of themselves, but are they good tenants. It is important now more than ever to have a thorough screening process when selecting a new tenant for your rental property.
Cartref Properties has a multiple step process which is not short and quick intentionally to deter bad tenants from following through with the process.
Our process starts with the first contact. When a potential tenant responds to one of our advertisements we request some basic information about who they are. This is the first step of, can they follow our basic instructions. It helps gather information and identifies serious tenants from just looking prospects. If they are willing to share the basic details then they are more often interested in the property.
Upon receiving the basic information provided we determine if the potential tenants meet our expectations. After assessing the information we make arrangements to show the unit to the potential tenants. An appointment is scheduled and we request that they contact us one hour before to confirm their attendance. Our experience is when people don’t waste our time and attend the showing at the assigned time, they are often good tenants. During the showing we are inquiring about them and confirming the details they shared in the request for basic information. On occasion people forget what they have provided us and we find them telling us different details.
If after the showing we find them a suitable potential tenant, then we will request they fillout an application form and submit this along with some information about them including financial details. Upon receipt of the application form we spend time reviewing the details and confirming the accuracy of the information provided. In today’s world it is easy for aperson to provide a mobile number to contact their supervisor. We spend the time to seek out if this person is an employee at the same location, and we contact the company directly to verify the details. It is surprising how often people provide details that are not accurate.
In times of this slow down we are finding more unsuitable tenants seeking new places to rent. Many landlords have their places vacant for multiple months and become desperate and fail to perform proper due diligence. This creates a situation where a landlord now has a tenant in their property who is difficult to remove, or doesn’t pay rent on time.
The longer and more detailed the process the more interested the potential tenant is in the property. Good tenants will answer your inquiries and provide the details you request in order to rent the property. Bad tenants will not complete the information or provide exuses why they are not able to give you what you request. These are signs they are not quality tenants and as a landlord should avoid them. It is important to read past the information and understand the people.
Need help managing your investment properties. Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com
