Undoubtedly, real estate investment is one of the most reliable and profitable opportunities owing to the numerous tax advantages and income potential. The real estate industry in Dubai is booming. And due to the emergence of professional Dubai property management companies, the landlords have it a lot easier in terms of carrying out the property-related responsibilities. Also, with sound property management, you can achieve your financial goals.
However, being a first-time landlord could be rather challenging. Especially ensuring that you have found a good tenant for your rental property can be overwhelming. Finding a good one is of crucial importance or else you would have to deal with non-paying tenants and those who cause damage to your property.
To lessen chances of such occurrences, here are a few things which ensure you don’t such nuisances and find the perfect tenant:
1. Increase Exposure
One of the best methods to attract a good tenant is ensuring that your rental property gets a lot of exposure. There are numerous websites and portals where you can market your property. Also, you could hire the services of a real estate agent who could significantly boost visibility and help your property to gain a lot of exposure. They can also guide you with valuable advice regarding marketing your property, review the rental applications that you receive, and assist you in bagging an excellent lease term.
2. Tenant’s Background and Credit History
Running background checks can help to identify the best tenants. You can also check your prospective client’s criminal records. There are many ways to do that. By doing this, you will come across minor or (possibly) serious crimes if any. Tenant-screening is one of the key services that property management companies offer. So you can hire their help.
Via credit check, you can know how much debt the person is under and if they can afford to pay the rent. Those with credit scores above 700 are financially sound and have a low probability of neglecting their debts. They are in better control of their finances. Ask for their income or salary statement to verify their income. If you find any discrepancy or have doubts, you can call the employer to confirm the income or get a ballpark figure.
3. Deposit Amount
The security deposit amount is a way to protect the landlord from damages. If it comes to negotiation, see that you settle for an amount that can provide relief if the tenant damages your rental property. Check for the maximum amount of deposit allowed. In Dubai, it is 5% of the agreed annual or monthly rent amount.
4. Tenant’s Rental History
Now, this might not be easy, but you can give it a try. If possible, get in touch with the previous landlords of the tenant. This way, you can know if renting out your property to this particular tenant would be breezy or problematic. You can inquire about the previous landlords if the tenants timely paid the rent and left their property in good condition or not.
5. Go for Long-Term Tenancy Contract
If the entire process of finding a suitable and trustworthy tenant tires you, go with a tenant who is willing to rent for long. As for their history, you can find all about it in the application form. Again, you can cross-check the information they have submitted. A person who switches homes or jobs too often is not what you would call reliable.
6. Meet in Person & Trust your Gut
Then, there is a meeting in person. It is always a viable way to meet your prospect tenant and have an interview with them. And while you do that, trust your instincts. Sometimes, your gut can be the best judge. If you find anything off about the prospective tenant and have reason to believe that they are suspicious, do not proceed. Verify the information again and decide based on their findings.
Sometimes, people apply for rent impersonating someone or using false identities.
Summing up, all of the above-mentioned tips do not necessarily guarantee that you will not have a bad experience or would surely get the best tenant. However, it can ensure you wouldn’t find a problematic one. And if you are unable to do all this, you can always go for tenant-screening services.
On a side note, if you have recently become a landlord and want to put up your property for rent, make sure to get it checked via a snagging company in Dubai to avoid getting any complaint from the tenants in the future.