Feb 11
7
Where Oh Where Are the Best Tenants Hanging Out?
by Julie Broad
After spending my entire Saturday afternoon waiting for tenants to show up and only having 1 out of 4 actually show … this reader question resonated with me. I thought I would share it with you, offer my answer and let you all chime in because I am certainly not going to pretend I have all the answers after the less than fruitful weekend I had!!
Where can I best find good tenants? I have tried “kijiji” and “craigslist” with practically no responses. Do you know of a sight where we can get forms for tenants to fill out before accepting them as renters? Is it worth paying a month’s rent to a real estate agent to find a decent renter? What guarrantees are there except after they are in the place for a certain time?
This question came in from Rudi. I don’t know where Rudi is from but it doesn’t really matter because I think my answer is the same no matter where you live.
Where Can I Find the Best Tenants:
I have a few different answers to this question.
- Unless a lot of people are holding out on me there isn’t one best source. When I look at our best tenants they have all found us through different sources.
- We do a lot of online advertising but lately most of our tenants actually come to us as a result of the sign we put on the front lawn. Generally they are more keen to live in the home because they live in that area already and love it, have friends or family in that area, or they are actively seeking to live in that area.
- We love referrals. If we can fill our units with referrals from existing good tenants that is our first choice. Good tenants tend to know other good tenants.
We still use Kijiji and Craigslist, and the one tenant that did show on Saturday and completed an application, found us on both sites. They said they use both sites because some units aren’t posted on both. If our rental was near the hospital I would find out if there is a board at the hospital where I could post my ad. The same for a University or College if you’re looking for students.
Is It Worth Paying a Month’s Rent for a Real Estate Agent to Find a Tenant?
I can’t answer this for you. You have to look at your cash flow, your time and energy, and your expertise. For many people it makes perfect sense to pay a full month’s rent to fill a property using a professional. Personally I would use a property manager versus a real estate agent for the simple fact that a property manager is skilled, trained and experienced in finding and screening tenants. (A great example of property management expertise can be found at Landlord Rescue. Here’s a great post Rachelle just wrote about filling a vacancy).
With our properties in Toronto and Kelowna we pay a property manager to oversee the property AND we pay them a month’s rent to fill a vacant unit. We aren’t there. The cash flow covers it. It’s the best choice. With our properties that are more local in most cases we’ll fill the units. But not always. We decide on a property by property basis.
What Guarantees Are There?
In real estate there are no guarantees and if anyone gives you one run the other way.
Seriously … there are some things are statistically more likely to happen. There are things you watch for that will give you a good sense of what is going to happen but in reality you can never really know. Things happen that you can’t predict.
If you’re looking for guarantees – put your money in a GIC and love the 1%.
The closest thing to a guarantee we have is that one of the property managers we have will place a tenant in the unit for free if the one they place moves out in six months or less. That’s about it. You can always ask the person you’re working with if they will do something similar, but most of them will not have much of a guarantee because you never really know when someone’s parent is going to get sick and they have to move in with them to take care of them, or when they are going to get a job transfer (this happened to me when I was a renter 7 months into a one year lease), or when they are going to break up with their boyfriend and get the heck out of there. Depending on the rules of the province or state you’re in you may have a damage deposit or a month’s rent you can keep if the tenant breaks the lease. That will help offset some of the costs.
So … Rudi … there are no real hard and fast answers to your questions. The only thing you can really do is TEST IT OUT. We test, tweak, and test again. We never assume that what worked before will always work.
As for how I am going to deal with the people who stood me up … I’m not. If someone shows that little commitment and respect to just do a no show they are not people I would want as renters anyway. And for the next round of showings I am going to be more diligent about calling them to confirm, asking them to call me if they aren’t going to show, and making sure I have their cell phone numbers so I can call them when they don’t show.
Have a great week!!
