As a landlord, you will likely come across different types of tenants searching for properties. Hence, tenants come from different dynamics, from singles, married, and large families. While some landlords are pretty keen on the kind of people they do business with, others have an open mind as long as they can afford the rent. If you are particular about your tenants, it is imperative to set standards for attracting and selecting the right tenants. Higher retention of tenants is optimal, whereas a turnover can lead to a loss regarding painting renovation and tidying up. In the worst-case scenario, the house could stay vacant for an extended period without potential tenants, more loss for your business. In this article, we identify the most common tenants in the real estate market. The information should provide some insight on ways of handling these specific groups as well as retention tips.
Types of Tenants
There are many different types of tenants and categories they may fall into. Those categories may include age, profession, marital status, and much more. Below we will discuss tenants based on single, non-married roommates, married, and married with children.
Single tenants refer to people who live alone, either a man or woman. The tenancy agreement is specific to them and the landlord without other third-party interference. Occasionally, they may have a visitor or two but still chose to stay in the comfort of their private company. Such tenants prefer living in a quiet place without any distractions. A property with kids making noise or animals might not appeal to them.
Most are professionals either having a day job or running their business. As a landlord, it is imperative to create a haven for them. Somewhere they can call home with a lot of peace and fewer noises. Most do not require so much space as a one-bedroom apartment or small home is sufficient for them. Having such property will attract and retain single tenants. The long-term effect is tenants that never cause trouble or move out. A landlord and single tenant relationships are generally the smoothest you will ever have.
Another category of tenants includes non-married roommates. It might sound ambiguous, but many single tenants choose to have a roommate. One reason is to cut the costs in terms of renting. Roommates may be of the same sex or opposite sex. Tenants may want to get a single apartment in an uptown location or a lovely home in the suburbs, but their finances cause a setback. By combining their resources, they end up finding a suitable location fit for both of them.
The appropriate houses for such include a two-bedroom, two-and-a-half bathroom home or apartment. They share amenities and familiar places like the kitchen and living room. This kind of client is more organized since lagging on one would derail both of them. If you want to attract this type of tenant, ensure you have a spacious house, and if possible, all bedrooms ensuite.
Married Tenants With Kids
Married couples with kids form the largest group of tenants within the industry. The presence of children comes with numerous needs that you must provide as a landlord for your property to be attractive. For starters, many, married with children, tenants look for a house with room for each child to have their own space. It is imperative to have a garage, fenced-in backyard, and other amenities near the home’s location.
Parents often look for homes near their children’s school, hospital, or even playgrounds; thus, a need to build or purchase properties that fit this criterion. Another notable factor is security. Every tenant wants to live with peace of mind knowing their children are safe playing outside. It’s because of such reasons why these types of tenants look for family-friendly neighborhoods. Also, consider investing in a security system to protect your property.
Married Couples With No Kids
The last category is married couples with no kids. Such couples may be new in the relationship with hopes of having children or decided not to have any. Most married couples without children are high-end professionals focusing on their careers. They have no problem renting any property in a nice area as long as they can afford it. The kind of property attractive to this type of tenant includes high-end villas or lofts. Furthermore, there must be sufficient storage and parking since each may have a car. Security is equally vital.
Attracting the Right Types of Tenants
Attracting good tenants isn’t a walk in the park. However, with definitive tenant criteria, you have a roadmap to success. List the qualifications of the tenants you prefer, the target market to look for them, and the requirements at hand. Additionally, employ a compelling listing strategy to attract the tenants you desire. Screen all tenants thoroughly to ensure they are the right fit for your property. Lastly, invest in regular maintenance and upkeep of your properties. A good maintenance schedule will help reduce costs and repairs of your property. A well-maintained property is attractive to potential tenants.
What Should You Consider When Selecting Types of Tenants?
Every landlord’s dream is to have tenants who don’t cause trouble and pay their rent on time. Otherwise, it will be a back and forth relationship leading to a notice to vacate. It is therefore essential to thoroughly evaluate all types of tenants before offering them a lease. The findings of your assessment will help you determine if the prospects you are considering are potential tenants.
The first and most vital aspect to check should be credit. Is the prospective renter in a position to pay the rent on time? Request bank statements to prove they can pay their rent. Next, check factors like rental history assessment and criminal background. Opening your property to dangerous people means jeopardizing all your tenant’s safety. There isn’t a standard way to gauge if a tenant is good or not. Avoid individuals with a bad credit history like default collections, late bill payments, bankruptcies, and past due accounts. Furthermore, request a detailed rental history from their previous landlord.
These checks should provide insight into a person’s history and paint a picture of the potential relationship. When vetting potential tenants, remember that your process must be consistent across the board for every person who expresses an interest in renting from you. Not only will this ensure you are diligent in your evaluation, but it can also protect you from a legal standpoint.
Stress-Free Property Management
Owning residential rental properties can be both rewarding and a prosperous flow of income. However, managing those properties can be time-consuming and stressful, especially if it isn’t your full-time job. Not only do you have the tasks of making sure the property is up to code and is well maintained, but you also play the role of marketing your properties to keep them full with tenants. Vetting tenants, collecting rent, and dealing with tenant issues can eat up a lot of time you may not have.
Are you a property owner not using a property management company, or are you are unhappy with your current property management company? If so, it’s time to contact Real Property Management Consultants. We have over 30 years of experience in property management and would be honored to become your trusted partner. We specialize in residential property management and are focused on providing affordable, professional, and trustworthy services.
It’s time to stop worrying about the different types of tenants, finding the right tenants, and retaining them. At Real Property Management Consultants, we take care of that for you, freeing up your time and relieving your stress so you can get back to doing what you love best. For more information, Contact us Today!
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