Having an income property in the Comox Valley real estate market can be incredibly rewarding. As a tenant assists with paying down your mortgage, you reap the benefit of building the asset of the equity itself – and the opportunity to use that equity to purchase another home for further investment advantages too.
Here are seven smart questions you should be asking every potential renter of your income property to ensure you’ve vetted for quality and respectful tenants:
What’s influencing your decision to move?
This gives you a glimpse into factors influencing their move, so you can make sure the house is a good match for them. It also provides insight into the potential length of time they plan on renting from you. For example, if they are relocating to be closer to family or want their children to go to the school nearby, they may be in it for the long haul.
Who will be living here with you?
The answer to this question allows you to determine if they have a partner, any pets, or if they expect any regular visitors; such as shared custody of their children, who may be staying at the home every other weekend. It also gives guidance on who should be on the lease agreement, as it’s a good idea to have all permanent residents listed.
This property is non-smoking; does that pose a problem for you?
By stating the question this way, you’re not directly asking if they’re a smoker (that’s against the human rights code); however, their answer will typically provide that information voluntarily. For instance, they may reply, “that’s not a problem; I don’t smoke” or perhaps, “that’s okay, I can smoke outside.”
Are you able to provide a current credit report?
A good rule of thumb is to have the potential tenant submit a current credit report with their rental application. This gives historical evidence of their payment patterns and ensures they don’t have a large amount of debt where paying rent may become a problem.
Have you ever previously missed a payment or broken a lease?
Naturally, as common sense, it’s a big red flag if the potential renter’s answer is yes unless there was some kind of extenuating circumstance to be noted.
Would I be able to call your current landlord as a reference?
Validating their current relationship as a tenant is an important component of the tenant screening process. If permission is given, this question assists in determining the relationship they have – which may translate into a similar experience for you.
Are there any questions you’d like to ask me?
Asking this question shows open communication and offers the opportunity to learn more about the potential renter. It also opens the door for friendly conversation, so mutual respect can be built, which can help lead to the tenant taking better care of your property while they’re living there.
It’s a good idea to chat with a trusted real estate professional to confirm any potential questions you may have before you rent out your Comox Valley income property. Connect with me today regarding more insight into best practices for renting and for further assistance to help you find the perfect property to a tenant.