1.-Set the right rental fee.

In rental properties, your main income is the rental fee so be sure to estimate and set a fair and attractive market price so you can rent the property immediately.

Take into consideration recent market comparables, which will give you the real rental value of your property.

Give more weight to properties that have been successfully rented and not to those that are still available. If you do not have access to this information in your market, it is advisable to seek the advice of an expert broker.

The desire to rent above market can cause the unit to go months without being rented, which in the long run generates greater financial losses.

2.-The rental market does not have a direct relationship to the purchase market.

It is very common to hear from clients that we must raise rents because the condominium (expenses/administration) have gone up or because repairs have been made or simply because the value of the buying/selling properties has gone up. However, the prices that tenants pay do not have a direct relationship with the owner’s expenses, these prices correspond to a very specific rental market in a city, community, sub-community or building.

3.-Consider renewing contracts.

While it is true that there are several elements to take into account when renewing the contract with a tenant, from a financial point of view, renewing is usually the best decision, with the renewal you would be avoiding costs such as:

Improvements to the property to put back on the market (painting, carpet cleaning, etc.).

Time to find a tenant, pre-qualify, negotiate contract and partnership application phase usually translates into weeks or months without generating income.

Commissions may be higher on first leases than on renewals.

4.-If the tenant is good, try to keep him or her.

One of the most sensitive elements of rental properties is the relationship with the tenant. If the person pays on time, maintains the property well, is not a constant nuisance for minor repairs, and you don’t get complaints from neighbors or the association constantly, he or she is an excellent candidate to renew and keep happy.

It is very common as a landlord to insist on raising the rent and be willing to walk away from “good tenants” for not reaching an agreement on the increase, however, before walking away from a good tenant always think that it is a lottery who your next tenant will be.

5.-Evaluate the tenant.

There are a few things you can take into consideration when choosing a tenant:

• Proof of income: request support where you can prove that you will be able to cover the property payments, such as: last payroll or income receipts (w2 or 1099), last tax returns, bank statements.
• Credit report: request a credit report to see the history of how you have paid your bills, in the United States you can use as a reference less than 579 (bad) in the lowest 20% of the nation, 580 to 669 (fair) below the nation’s average, 670 to 739 (good) nation’s average, 740 to 799 (very good) in the top 40% of the nation, 800 or more (exceptional) in the top 20% of the nation. It should be noted that if the person is a foreigner and does not have a social security number, he/she will not have a credit report.
• Police Report: provides peace of mind knowing that this person does not have any police record. It is very easy and quick to obtain.
• References from former landlords where the person has lived: it can be a letter, or put the information on the application form where you indicate the phone number so we can call and ask for references. Although they are telephone references, they give us important feedback.

Remember also that if your property is in a condominium which needs approval before your tenant moves in, the person will also go through this filter which will give you double protection.