Interview questions to ask when using your investment as a rental property
In the modern age, the majority of professionals make money from various outlets.
This is the age of having eggs in as many baskets as you can. Many markets are more unstable than ever, and that only looks set to get worse in these times of political turmoil. So, alternative paths to earnings often seem like the best choice.
Of course, the paths we choose vary depending on our needs. But, there are money making methods, like real estate, which offer safe investments with high returns for anyone. Only, knowing what path to take when it comes to property can be daunting. After all, this is a field which involves large sums of money. And, while safe, there are still risks involved if you don’t know what you’re doing.
For the most part, renting is the safest route to take. It puts you in a position of power, which is necessary when you’re just starting out. Plus, it’s a sure way to see the largest return on your investment. That is, of course, if you choose the right tenants with whom to enter this partnership. And, to help you do that, we’re going to look at a few questions worth asking during the deliberation stages.
What is their income?
The first thing you need to know about is income. It can be a difficult question to broach. But, you need to know that your tenants can comfortably afford to pay. Ask to see wage slips for the last three months as soon as possible.
How long do they plan to stay?
If your tenants only plan to stay for six months, you’ll soon have to pay to put the property back on the rental market. As such, short-term tenants may not be the best bet. Instead, look for people who want to stay long-term.
It’s also worth checking whether they’ve rented before. As a first-time landlord, it might be worth taking tenants who have been in the renting game for a while. They don’t need to know, but you can follow their lead when you’re unsure.
Have they got references?
You’ll also need to ask for references. You are, after all, entrusting your most valuable commodity to these people. It’s important you hear someone else vouch for them beforehand. Previous landlords are the best option if possible. They’ll be able to let you know what this person was like as a tenant. Employers are also worth speaking to, as they can confirm income.
Are they happy to take the property as it is?
A tenant who moves in with instant complaints is any landlord’s worst nightmare. Of course, they’re well within their rights to demand repairs on broken things. But, asking them beforehand will ensure you have time to do the work before they move. This is also a good indicator of how demanding they’ll be. If they point out niggly issues they’d like changing, they may not be the best tenant for you.