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Finding suitable tenants for a condo property can be challenging and requires a significant amount of time and patience. Hiring a condo property management company in Etobicoke, such as Mareka PM, can save you the hassle of screening tenants yourself.
A condo property management company specializes in finding the right tenants for condominium rental properties. They facilitate the entire process, from background and credit checks to ensuring that prospective tenants are the right fit for your building and filling all available units. Instead of taking on this tedious and stressful process yourself, a condo management company can assign a property manager to take on the daily operations and management of your building, giving you more time on your hands.
Here, we share our process and tips for finding the right tenants for condominiums.
Among all the processes that condo property management companies go through while selecting the tenants for a property, background checks are the one of the most important. Credit, criminal background, and income checks are crucial in screening tenants. As a property owner, you want a tenant who is financially responsible, as this means you will not have problems collecting payment, maintaining your building, and growing your investment.
To verify a prospective tenant’s financial capacity, verify their income. Ask for copies of their paycheques, or call their employer directly to ensure they are employed and earn enough to make good monthly payments in your condo building. Ideally, you will want to find a tenant whose monthly income is at least three times more than the monthly rent. Next, do a credit check. This will tell you if they: pay their bills on time, the amount of debt they have, and their rental/ownership history. Lastly, you need to do a criminal background check. This will tell you if the applicant has a criminal record that could jeopardize your property.
If a person has owned a condo unit in the past, it is important to find out everything you can about their rental history. This will give great insight into how that person is as a tenant, and if they are telling the truth on their application, or during in-person meetings. If possible, you should talk to at least two of the tenant’s previous landlords; if the applicant was a difficult tenant, then the current landlord may not be so truthful, as they may just want to get the tenant off of their hands. Speaking to a landlord or previous building manager will answer many important questions to ask while considering someone as a tenant in a building. Some of the questions are:
Of course, if the applicant is a first-time renter, they may not have a rental or previous ownership history. In this case, asking for a cosigner might be the best option.
When a tenant hands in an application form, they usually supply an employment history sheet or a resume, and if they don’t, then they must do so before the application can go through. If on their employment history sheet, or on their resume, there is a lot of gaps or strange occurrences, then that might be a red flag. Do they move or switch jobs often? If so this pattern is likely to continue and they will not be a long term tenant. If they have not shown consistent employment, they may not be able to afford the condo in three months and you will be left starting your tenant search from scratch or dealing with an eviction.