5 Steps To Getting A Better Tenant
Looking for help managing your investment property?
Don’t hesitate to reach out!
Prefer to read rather than watch? We’ve included a transcript of the video below. Bear in mind that it is autogenerated so please ignore any typos:
5 steps to getting a better tenant_1.mp4
Benton [00:00:00] I’m here today to talk about the five steps to getting a better tenant.
Benton [00:00:03] The first step is always to publish everywhere trying to get as many leads as possible and to do that.
Benton [00:00:09] You need a wide net publish as many places as possible get more leads, that way you can filter get down to the bare bones get a good tenant.
Benton [00:00:17] Good way to learn to use this is to post with a tool called Postlet, it’s a Zillow product post to Zillow, Trulia and another few other sites.
Benton [00:00:25] Gets it out there get on the Zillow the network but be able to get those inquiries coming in.
Benton [00:00:30] Second step is to do a good background check on these potential tenants not just on the normal credit score but do criminal background check to double check that also verify their income.
Benton [00:00:42] We usually like to have three-to-one income to the rental price and you can set the standard yourself. Some people do two and a half.
Benton [00:00:48] We like to do three to ensure they can afford the place so good background screening and also double check in multiple states.
Benton [00:00:54] Use your eyeball to double check as you might see this Joe Smith in Nevada is not the same as Joe Smith in Arizona as it is in Florida.
Benton [00:01:04] Sometimes all these background screening checks will miss in Florida Joe’s criminal offence thinking it’s a duplicate. Really it is the tenant you’re doing so double check to make sure multiple states. They have might have criminal records in other states.
Benton [00:01:16] Number three is about the property. Make sure it is rent ready. If you have an ugly property you’re most likely going to get some ugly tenants.
Benton [00:01:23] Ugly in the sense that they’re going to treat the property in a bad manner. Not going to pay rent on time there’s a lot of things that go into it.
Benton [00:01:34] Make it a good rent-ready condition and that way you can actually find a better time to come in pictures when you post it everywhere. Make sure it’s rent ready when you post it. Otherwise you’re going to get those people looking for a deal.
Benton [00:01:46] Usually if they’re looking for a deal there’s also some other effects with that maybe they’re going to treat the property little bit less, not going to pay rent on time things like that. So make it look nice.
Benton [00:01:56] Fourth and the one that I always hamper on. Be responsive and set expectations. And this goes in the category of actually you find the tenant you’ll be responsive if you’re being responsive they’re being responsive. That’s a good tenant. They want to be in your property.
Benton [00:02:11] They want to be in that home for long term. So that’s what you want but also setting expectations you can actually turn and make a better tenant by setting the proper expectations.
Benton [00:02:20] Tell them how you want them to be. Tell them how you want them to be a better tenant when to pay rent, when late fees happen, what to do with maintenance situations, what to do in certain areas clean this room when you leave out clean this. Do the carpets.
Benton [00:02:32] When you actually tell them how you want them to be and they might turn out to be that way. Just given the set expectations, sometimes they only know that maybe they should clean the house before they leave. They don’t have that opportunity to know.
Benton [00:02:43] Always make sure those are clear set expectations are presented to them and you actually can make them a better tenant. You might not be going to find them or you find a good tenant make them a better tenant by saying those expectations and being responsive when they send in an inquiry through Zillow or whatever makes you respond immediately if they respond, hold on to that tenant. They want the property and most tenants when they move they intend to stay there long term usually through their experience.
Benton [00:03:10] They actually lessen their term and move out a lot of times they want to stay in a three to four years time making a community and making part of the home. So that goes part of it be responsive. Set expectations what you want them to do and maybe it’ll turn out that way.
Benton [00:03:23] Good way to do that is actually go in and do a move-in walkthrough with them. So when you give the keys or they’re ready they actually sign a lease that’s put on the deposit go walk them through the property and we love this. We think this is the ultimate secret that we don’t tell a lot of property management companies but this is how we get better tenants.
Benton [00:03:39] We set expectations do some little asset training on the house tell me there’s the shut off valve about here’s other things that you need to an emergency you also set, “this is how you submit work orders, if you need a maintenance request this is how you do it.”.
Benton [00:03:51] Set expectations of what they’re required to do. A tree you’re supposed to trim. We do it six feet or under in Arizona. You make sure you trim that tree. In other states might be a little bit different what we do. We’ll just set those expectations. But if you walk them through one you build a relationship with them.
Benton [00:04:06] If they know who you are they can kind of picture you it’s a lot harder to mess up a home and store it when you know that the landlord or the other person involved walk them through the property. Do some asset train build a relationship with them build that rapport and set expectations as we’re walking around. I can’t tell you how valuable this is. It’s been amazing for our business and for our landlords and investors.
Benton [00:04:27] And number five thing to do and I love this and I don’t know why no one does this super easy. Give a welcome gift when we talk about setting expectations, when you set up expectation of giving them a welcome gift, it opens up the world.
Benton [00:04:39] Just think of like a hotel when they put that little chocolate on your bed. It’s such a small little thing that the whole experience. But you remember that or they leave a champagne bottle with chocolates or something for an anniversary. You remember those things you might remember how clean the bed was and may have been super clean or OK clean. But you do remember that chocolate.
Benton [00:04:57] It’s the same concept here. Leave a welcome gift. Something small. Maybe 15 25 bucks the local Starbucks or whatever gift card. One thing I did when I actually bought a home. The previous seller left a huge old packet for me and I love this but it’s got to go this extreme. A packet of everything you think of good restaurants in the area. Things they enjoyed in the community. They talked about this public park across the street and had a rec center things they loved about it.
Benton [00:05:20] They went in detail to every single plant in their yard and how to take care of it and when they planted it just extreme or when they didn’t make it on the house the dates, the history. They went into everything in this house that I loved it, it was amazing to go that far but maybe just a few though things. Here’s the community, here’s some good restaurants to go to. Help them get involved in the community if they’re involved in the community they’re going to stay longer.
Benton [00:05:43] They’re building a home they’re building a experience. They don’t want to move away when they’re involved. If they’re detached and away from detached from the landlord detached from their community they’re more likely to skip down and leave out. Many might leave after you lease term.
Benton [00:05:57] Totally normal fulfill it but we want to stay in three or four years or 10 years so give me a small welcome and maybe a little restaurants in the area. Little card maybe tell them how to you know if they need to submit work orders through an email or a maintenance request or an email. Give your email address leave a little card or something like that.
Benton [00:06:13] These are little steps that we’ve done. Again at RentVest to be able to establishe, we’ve rented to over ten thousand tenants. We’ve had some great tenants, they stay longer. They submit less work orders. We’ve proven these stats compared to other companies and other self managed landlords. And so we’ve we’ve proven the model. Here’s the knowledge for you.
Benton [00:06:29] Take it and hopefully you can be successful in your rental property investment. That’s our goal here is help you be successful. If you can’t quite figure out how to get good tenants contact us we’ll do it for you and figure it out and help you with that process. Again we’re experienced with that and we love doing it. We feel like we’ve had this niche and we figured it out.