The most important decision any landlord makes is deciding who can live in their property. Who will you, as the owner, allow to live in your investment? This decision is so vital to the profitability of any property investment business and affects the business on so many levels that it’s amazing that some landlord don’t have a formalized procedure to protect themselves from making bad decision.

Let’s think about what we’re actually doing when we rent a property. Instead of thinking of the property as a monthly income generator think of it as a pile of cash. Cash you have tied up in the deposit and purchasing costs. Cash you hope to gain a regular income from through renting and more cash that you’ll receive if you sell the property and realize your capital gains. (Assuming house prices have risen since you purchased). If you include in this the value you place on your time spend finding the property, buying and arranging the rental then we have a very serious investment on our hands indeed.

Now, imagine all that money in real, tangible terms, stacked up in a room in the house and then consider we hand over the keys to someone and say, “See you next year”. Now we can begin to see how important it is to select the right tenant. Of course, I’m being dramatic and we do have legal safe guards but I hope that by considering your investment in terms of hard cash (like a professional investor) then you’ll treat the question of occupancy very seriously.There’s more to it than just financial. Not only are we trusting the tenant to look after our investment but we’re also investing our free time with them.

What do I mean? If we are managing the property ourselves and not using a letting agent then we have made a serious commitment in time to look after that tenant. If you have a tenant who does not appreciate your property or does not treat it with care and respect then you run the risk of losing your evening and weekends in maintenance and management tasks. What about rent collection? An unreliable tenant who does not pay on time creates stress and worry. Legal protection lets us all sleep better at night but the practicalities of recouping money and legal costs are a headache we do not need and one that’s very avoidable.Once we know how seriously we need to take the task of finding the correct tenant we can start looking for the very best people. In this case ‘best’ has two simple criteria.

1) They pay on time and in full
2) They look after the property as if it were their own.I’m going to discuss three tools we can use to help find good tenants. The first is a long and very comprehensive application form. I ask for as much detail as possible from the tenant. I need all their contact details, ID, proof of current address such as telephone or electric bills, previous addresses and, perhaps most importantly, references from their employer, previous landlord (if they’re moving out of home I’ll ask for their parents’ contact details) and a character reference from a recognized member of the community such as a Doctor or Teacher.

Importantly, I always act on these references. I will check with whomever they have given to make sure the details are correct and they can vouch for the applicant.Secondly, I ask for a larger deposit than the usual 4 weeks rent. Typically I ask for 6 weeks rent (UK law give the tenant an automatic option to sublet if the deposit is too excessive, say more than 8 weeks rent). Paying more upfront is usually a good sign that they are serious.

Finally, I have to feel comfortable about the people. If I can get along with them when the property is viewed and when we talk on the telephone and if I don’t have any intuitive alarm bells going off then I trust my own judgment. At this point you might be wondering about a credit check? Yes this is a great tool depending on the affluence of your potential tenants. Some of my properties are let to people on social security benefits, many of whom I’ve had to help set up a bank account even. In these cases a credit check would not be beneficial but for better off tenants it can be a worth while exercise.

Once we know how to approach the subject of finding great tenants we can consider why people make poor letting decisions. In my experience the worst decisions about tenants are made in pressure situations. An empty property is very damaging to the bottom line of a landlord. If a property is unoccupied it’s very tempting to let the first person who comes along have the tenancy. I know, I’ve made the mistake myself (several times I’m reluctant to admit). This situation is exacerbated if you find your property is not in demand. If you only get one phone call from your advert in the local paper then you’re putting pressure on yourself and your business.Therefore, the best way to make a good decision is to have a lot of people to choose from.

Creating a big list of possible tenants comes from good advertising with good descriptions of you property and its selling points, realistic pricing (even undercutting competition in a renter market) and building a solid reputation as a landlord.

1.) Newspapers – Newspapers are one of the most common methods. A nice ad that is properly worded can bring in great results. One must be careful though, because any newspaper ads over a week or so tend to get pricey. When using newspaper ads use the commonly accepted abbreviations for words like “bath,” “bed” and others. This will save lots of money.

2.) Flyers -This method isn’t often used and takes a person with a salesman’s mentality to carry it out, but if all other forms of advertisement haven’t got the property rented yet, one better roll their sleeves up and hit the streets.

3.) Property Signs – These are also one of the most common methods and often bare nice results. The twist that can turn this tip into a great method is by getting those new signs that many people use to sell their own homes (the ones with the little plastic tube that contains information about the property inside it). This saves the landlord lots of time because the potential tenant can get the property’s information instantly and often won’t call the landlord for a home viewing unless they are really interested.

4.) Word-of-Mouth (referral) – Word-of-mouth is an indirect, but good method of getting the word out that the property is for rent. Referral programs can be a great way to add to the benefit of this tip. If one has a tenant that is leaving, offer them a small amount of money if they can refer someone to rent the property once their gone. This trick works great in college and university towns where there is large turnover and most of the tenants either work or go to school together.

5.) Internet/Publications – The internet is quickly emerging as the best way to get a property rented. Internet “For Rent” web sites are everywhere, and often the first place a potential tenant will look is the internet. The best sites are those that are for the local area only. This ensures that every viewer of the web site is there to find a rental property in one’s local area, not for a property across the country.

6.) Television/Radio – Not necessarily practical for the small-time investor or owner of single family homes, but can be of benefit for larger operations or those that own one, large apartment building with many units. This method is also by far the most expensive and often reaches and audience that isn’t necessarily looking for a property to rent.To conclude, all of the above tips are legitimate methods for getting a rental property rented. One must determine what their budget is and what has worked for them in the past. If this is their first rental vacancy, stick to the newspaper, local online “For Rent” sites, and the sign in the front yard. Unless it is a depressed market, those three will almost always bring results within a couple of months.

1: Ask for when you can move in: If you are looking for immediate occupancy, first of all ask landlord when you can tenure the apartment, also enquire whether currently is it occupied by someone else. After confirming check in, you may negotiate with the landlord for not paying for unoccupied period.

2: Ask for the rent amount: How much is the amount is and when to pay? Ask for advance security deposit and whether it is completely refundable?

3: Fine for late payment: Inquire is there any fine for late payments of the rent? if it happens.

4: Renewal Terms: Check out what are the conditions for renewing the lease. What are the terms if you move-out before the lease ends?

5: Are any utilities covered: Ask your landlord about the utilities, whether they are covered in your rental contract or not?

6: Are you permitted to share your apartment: If you want to share your place with your colleagues or room partners, ask for written permission to doing so.

7: Are your pets allowed or not: Ask for permission if you have any pet. If it is not permitted, would it be possible by paying for pet deposit in advance?

8: Minor renovations: It is but natural that you would love to live in your kind of environment, and to do so you may need minor renovations such as painting wall and some decorations. Just inquire this point before you check in.

9: Inquire about your neighbors and surroundings: Every person would like decent neighborhood, if it is not there, you may have to face frequent disturbance. To avoid this you should know about neighborhood very well.

10: Inquire for service points: Ask landlord, how far is the market and other required service points like post office, bank, restaurant and public transport stations etc. It will make you aware about your surrounding area. By inquiring such things you can avoid any dispute and reasons for disagreement in the future with landlord.