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Hard Money Lender Investors

To Find the Best Renters for Your Investment Property, Ask These 6 Questions

Posted by Ken Meyer on Tue, Nov 28, 2017

hard money lenders for rental propertiesWhen you purchase and fix up a rental property, you expect a reasonable return on your investment. That means filling your rental units and finding renters who will pay their monthly rent regularly and on time. That can be a challenge, but you can simplify the process if you ask the right questions before they sign on the dotted line. Here are 6 questions you should ask renters before they move in:


  1. Why did you leave your last apartment? You'll need to check with the previous landlord to ensure renters are providing accurate information, but first get their version of why they moved. If someone got evicted or couldn't get along with other tenants, you'll want to think twice before renting to them.

  2. Were you ever evicted? Even if a tenant wasn't evicted from his most recent apartment, he might have been evicted from the one before that. If he was, that could make him a greater risk for issues with your rental unit.

  3. How much do you make each month? The rule of thumb is that renters should have a monthly income about 2.5 times the amount of the rent. If the rent is $1,000, for example, they should have a monthly income of at least $2,500.

  4. How many tenants will there be? The more people you have living in your rental unit, the more you'll probably need to pay for maintenance when they move out. Generally, there should be no more than 2 people per bedroom.

  5. Do you have references? You'll want references from both the new tenant's employer and his previous landlord. His employer can tell you how long he's been in his current job and if he's responsible. His landlord can tell you if he paid his rent on time and confirm the reasons he gave you for leaving.

  6. Can I answer any questions for you? Remember that your rental arrangement is a two-way street. Renters who are satisfied are more likely to be with you over the long haul. If there are going to be issues, you want to know about them now, not 6 months down the road. Giving your prospective tenant the opportunity to ask questions before he moves in can ensure that both you and he are satisfied.


Of course, you'll want to verify everything prospective tenants tell you. That means calling references and doing both a background and a credit check. Exercising due diligence before you finalize a lease can take time, but it will also save you potential headaches in the future.


At Trust Deed Capital, we can help you secure the financing to purchase properties, improve those properties and realize a return on your investment. We can also help you refinance loans on your investment properties. To learn more about our lending services, contact us today.


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