The greatest fear of any owner is to find a tenant who does not pay the rental fee and who also refuses to vacate the property.
This situation involves investing time and resources to demand payment and, in addition to the legal expenses that must incur to achieve unemployment.
The ideal is to assess from the beginning whether or not the potential tenant can be responsible for the payment and avoid future headaches.
While there will always be the risk of having these types of tenants, specific steps can be taken to screen candidates and mitigate the potential risk involved.
For this, it is necessary to know the following aspects of the person
· How is the person’s income, and how stable is it?
· What has been your payment history when honouring your obligations?
· What is your current debt and family situation?
In the case of job references, they are the first aspect to evaluate.What is sought is to assess whether the person has a stable income to pay the rent. In this case, the ideal is an employed person since they have a constant and indefinite income.
Ideally, she is employed in a company that has stability in the market or the government. If the person owns his own business, the type of business he owns is evaluated. Is it a formal business? Do you declare VAT and income tax? Is it a new business, or has it been around for a while?
Here you must request your VAT declarations to know the utility and evaluate the stability of your sales.
The second step to evaluate after the entry is your payment history. For this, we can vary the credit record of the person. Although your rental payment history will not appear in the report, it does give us a parameter on how the person has been honouring their obligations. There are two aspects of this report to evaluate.
First, what is your score? The higher your score, the greater the credibility that the person is responsible for paying their obligations.
The second is your current debt level. A person may have a good score, but if they have a high level of indebtedness, there may be a probability that in the future, they may fail, in case they lose their job or have an emergency.
With these two aspects, we can have a basic overview that will determine whether a person will be responsible for the payment. As an example, we have that an ideal tenant profile would be that person who:
· You have a permanent job in a recognized company
· Has a high credit score
· It has a low level of indebtedness
In the same way, the risk is measured for all cases until the worst-case scenario is reached, which would be a person:
· Without a verifiable income
· With a credit score in category E
In such case, it would be best to ask you to pay the full fee in advance to avoid the risk. With these three parameters, it could be predicted that the person will be responsible for paying the rent and the risk of non-payment is low.
At Sirmaya.com, we have the necessary experience and knowledge to find the ideal tenant for your property. For further information, visit sirmaya.com.