How do I find tenants to rent

In search of the perfect tenant - a guide

Renting a home has many advantages. This does not only apply to financial aspects. If you travel a lot, in a good tenant you also have someone who looks after the property and reports any problems. So that you can find such a tenant, we have put together a small guide that will guide you step by step to the ideal tenant.

Step 1: preparation

You have a property that you want to rent out. That shouldn't be too difficult, one might think. But caution is advised and it starts with the preparation. First of all, you should ask yourself who you want as a tenant in your apartment. Accordingly, it is important to advertise your property. Families want a child-friendly neighborhood, an elevator can be essential for the elderly, tenants with busy jobs may be looking for a central location and good transport links. A targeted advertisement is therefore crucial.

Another aspect is that set rent. When looking for a tenant, one should not fall into the trap of trying to attract well-heeled prospects with a high price. Too high a price has a rather daunting effect on them. In addition, this strategy can backfire and attract tenants who initially accept any price out of an emergency and then turn out to be unreliable payers or even rent nomads. Finally, the legal situation must also be taken into account. Because the rent brake regulates that the rent may not be more than 10% above the local comparative rent. A look at the rent index provides a good framework here.

Such a cap on rental prices no longer exists in Great Britain. Although it was introduced after the Second World War, it was abolished again in 1988 as it had rather negative consequences in the country. The situation in the US is less uniform. Here it is in the hands of the states and cities, in many metropolitan areas such as New York or San Francisco there is a "Rent Control". However, other cities like Boston have abolished them in recent years. It is therefore essential to find out about the situation in your own city.

Step 2: inspection of the apartment

Mass visits are to be avoided in any case. After all, you are not renting a room in a shared apartment for students, but want a long-term and stable tenancy. In addition, the landlord has the opportunity to get to know the potential tenant better and in a subtle way, as part of a private viewing few questions to clarify.
Because the devil is known to be in the detail. In a nice conversation, you can quickly find out why the interested parties want to rent the apartment, how many people will live in the property, whether there are pets or the little ones like to play the trombone. The reasons for leaving the current apartment or any reservations against a SCHUFA self-assessment of the prospective tenant can also be determined in this way.

Step 3: documents

There are a few documents that you can ask the prospective tenant to provide. However, he is not obliged to submit all of these documents. However, potential tenants without financial hardship or problems they are responsible for in their current apartment usually have no problem with submitting these documents. These include:

1. Self-disclosure: Here the tenant (voluntarily) provides information about his financial situation as well as about pets, hobbies and reasons for moving out of the previous apartment. However, in some aspects - such as playing an instrument or planning children - he is not obliged to make truthful statements. Incorrect information on these points is not a reason for termination. This information is available with different emphases in most countries, including the USA and Great Britain.

2. Financial security: With the SCHUFA information, which can be requested free of charge by the tenant, the creditworthiness can be checked easily in Germany. A refusal by the prospective tenant to present this should set the alarm bells ringing. The landlord in the USA also has the right to request a tenant insurance, the so-called "Renters Insurance", which pays for any damage that may occur later. In Great Britain, too, it is common practice to take a closer look at the background of a prospective tenant. For financial matters, one can turn to the “Credit Reference Agencies”. By default, they offer a check of the payment behavior of potential tenants.

3. Previous tenant certificate: This certificate issued by the previous landlord is another way of obtaining information about whether a tenant has regularly paid the rent and whether there are any rental debts. In the USA and Great Britain it is still possible to request a direct contact address and reference of the previous tenant. This personal contact is more common in these countries than in Germany. In this way, not only can the question of possible rental debts be clarified, information can also be recorded on the other behavior of the prospective tenant.

If you want to use a rental apartment as an investment, you need reliable tenants. We are happy to support you in finding a tenant and work with you to find the ideal candidate for your individual property. Our years of experience make us ofEngel & Völkers the perfect partner and advisor for all questions about renting living space. On ourWebsite you will find initial information.