Here are some things you should consider when renting out your home.
Renting out your house is a great way to earn supplemental income, but it can be overwhelming if you aren’t prepared. Choosing the right tenant will make your life a lot easier, but how can you do that? Today we’ll share our best tips for picking the best renter.
Whenever you’re considering someone as a tenant, ask for four things:
- An application
- A credit report
- A W2 or proof of employment
- Proof of funds/bank statement
Credit scores are important, but don’t just look at the number. Check their eviction and criminal background, which you can only find if you ask for a full credit report. Fortunately, your tenant is required to pay for this if they are over 18 years old.
"In our experience, references aren’t worth much."
Generally, you should be wary of references. In our experience, people usually just list their friends, which isn’t much help at all.
Bank statements are helpful in many ways. Not only do they tell you how much money a person has saved up, but they also give you an idea of how they’re living their life. You can get a feel of what sort of tenant they might be, which is invaluable information. Then, don’t forget to grab their social security number and driver's license number after you’ve decided someone is a good fit.
