Illustration: Courtesy of deemakdaksinas

Being a landlord can be a profitable venture that allows you to build equity while also making money.  However, when you step into the arena of investment property ownership, your mindset must shift from the age-old property advice of "location, location, location" to "tenant, tenant, tenant" (clark.com).  

Your tenant will make or break you—quite literally. Hopefully, he or she will pay on time, respect your property, stay for an extended period, and make money for you. Unfortunately, there is always the possibility that your tenant will not pay on time (or at all), entangle you in an expensive eviction process, and break your home, which will sink you into a hole of extensive repairs.

The risk you will be taking on your tenant is enormous. As a result, you do not just want a good tenant. You want an outstanding one! An exceptional tenant is priceless, and the work required to find such a person is, without a doubt, worth the effort and time.

Outstanding Tenant Hunt "To Do" List

1. Make your home look good!
   The rental relationship is a mutual selection process. You are evaluating the potential tenants, and they are assessing your property. You cannot expect to find a tenant who will respect your property if you do not show you appreciate it yourself.

• Make sure you have your home professionally cleaned and that you have updated the fixtures and floors. Give your property a "lick of paint" (landlordstudio.com). Freshly caulk the grout in the showers, on the countertops, and around the toilets.
• Tidy up the landscaping.
• Add a touch of color and style, such as potted flowers, dusk to dawn lights, a front porch swing, etc.

1. Do unto others...
   Treat your applicants the way you want them to treat your home: with respect.

• Respond immediately to their inquiries about your home.
• Show up to the viewing in professional clothes and a clean car. If the applicants do not do the same, move on.

3. Get to know your applicants.
   Take advantage of doing home showings where you can meet your applicants in person. You want to get an overall sense of who the applicants are. Ask questions. The following are a good starting point (landlordstudio.com):

• What is your current job?
• How long have you worked there?
• Do you have any pets?
• Why are you looking to move?
• What has your experience been with past landlords?

4. Require a rental application.
   Request the following information (military.com):

• Applicants' names
• Social Security numbers
• Previous addresses
• Driver's license numbers
• Income sources and amounts
• Children's names and ages
• Number of pets and their breeds
• Employer contacts and job title
• References (not family)
• Reason for moving

5. Do your homework on each applicant.
   Conduct an in-depth interview with all previous landlords (thebalancesmb.com). Ask:

• Did the tenant pay his or her rent on time?
• What was the reason for the move? Was the tenant evicted for non-payment of rent or for breaking the landlord's rules?
• Did the tenant give 30 days' notice before moving?
• How did they keep your property? Were they clean?
• Did they cause any damage to your property other than normal wear and tear?
• Were they respectful of their neighbors?
• Did they complain often?

6. Call all references to find out about the applicant's character and personality. Ask:

• What is the applicant like?
• If you had three words to describe the applicant, what would they be?
• Is the applicant responsible and conscientious?

7. Verify income.
   Ideally, monthly income should be at least three times the monthly rent (thebalancesmb.com).

• Ask for copies of the applicant's pay stubs.
• Call his or her employer directly to confirm work, length of employment, attendance record, and monthly earnings.

8. Run a credit check.

• Make sure the applicant's debt-to-income ratio is not too high.
• Look for late payments.
• Check for prior evictions, negative comments, civil judgments against, and bankruptcy.

9. Perform a criminal background check.
   To save time, hire a reputable tenant screening company to perform this check for you (thebalancesmb.com).

10. Finally, trust your gut.
    If the applicant does not feel right, go with your instincts.

Now that you've found your ideal tenant, check out our article on how to keep an outstanding tenant to keep your property occupied. 

Sources:
clark.com
landlordstudio.com
thebalancesmb.com