Earlier this year, San Mateo Daily Journal reported that rents across the county were starting to stabilize and even drop. If you're one of the many landlords to reduce rent, you've probably seen your tenant pool expand.
How can you make sure that as more renters apply, you consistently find reliable tenants and practice smart property rental strategies?
We have some great tenant placement tips to help you fill your rentals with tenants you can trust. Read on to revamp your tenant screening process and more.
Perform a New Rental Valuation
In the aftermath of a market change, you should always perform a new rental valuation. If you're overpricing your unit, you're likely to fall behind your competitors. If you're under-pricing your unit, you're missing out on potential profits.
Performing a rental analysis starts with taking a closer look at what your competitors are doing. To build a list of accurate comps, narrow down your comparative properties based on similar amenities and locations.
Fine-Tune Your Lease
Once your rental analysis is complete, it's time to update your lease. Not only do you need to use clear language outlining the cost of rent, but you also need to clarify:
- Rental due dates and grace periods
- Late fees
- Start and end dates of the leasing period
- Specific rules you expect tenants to follow
For example, if you allow pets, you should include any related rules (like pet fee amounts) in your lease. Clear leasing language creates clear expectations and can help reduce lease violations.
Verify Financial Status
During the tenant placement process, one of the most important things you can do is verify each applicant's financial status. Make sure to ask for proof of income via:
- Recent paystubs or W2 forms
- 1099 forms (for contractors)
- Bank statements (for self-employed applicants)
You should also run a credit check on applicants to determine their debt-income ratio. Keep an eye on local laws, however. The California Apartment Association recently reported that if Bill AB 2785 passes, it will limit screening fees to $50.
Investigate Renter History
Finally, take the time to assess your applicant's renter history. You can find out about any past evictions through a standard credit check.
To learn even more about a renter's history, ask for the contact information of their last landlord or property manager. That way, you can unearth more nuanced information, like late payment history or lease violations that didn't lead to an eviction. If your applicant is a first-time renter, ask for three character references from sources such as employers or professors.
Need Better San Mateo Tenant Placement? FiveStar Can Help
Are you getting an influx of applicants in the face of stabilized or reduced rent? If so, don't let your tenant placement strategy slide. Now is the perfect time to strengthen your tenant screening practices to find great tenants and maximize your rental income.
Do you need help finding reliable tenants and managing your properties? FiveStar provides rental property management from both licensed real estate professionals and accountants. Contact us to get property management services informed by financial expertise to truly get the most out of your rental portfolio.
