How to Find and Keep Good Tenants: Considerations for Landlords

By the Mercury Team

Being a landlord can be rewarding and challenging, especially when finding and keeping good tenants. The right tenants can make your life much easier in a variety of ways, from taking care of your property to paying rent on time. But how do you find these ideal tenants, and once you do, how do you keep them happy and renting long-term? Let’s explore some practical landlord tips and strategies to help you attract reliable tenants and create an environment where they’ll want to stay for the long haul.

What Makes a Good Tenant?

Good tenants pay rent on time — that’s a given. However, there are other qualities that can make a tenant truly exceptional.

They Respect the Property

A good tenant treats your property as if they own it. They take pride in keeping things clean, report maintenance issues immediately, and genuinely try to prevent damage.

They Communicate Effectively

Good tenants don’t let problems fester. They reach out proactively and respectfully, whether it’s a minor repair, a question, a change in their circumstances, or need an answer to the question, “Can a landlord make you get renters insurance?”

They Follow the Lease Terms

The lease is the roadmap for the landlord-tenant relationship. Good tenants understand this and make it a point to follow all the terms outlined, from rent payment deadlines to guidelines about pets and guests.

They’re Financially Stable

They should have a steady income that comfortably covers the rent, ideally with enough left over for other living expenses. During the tenant screening process, you should require proof of income to verify their financial stability. Ideally, you’re looking for someone whose income is about three times the rent.

They’re Respectful of Neighbors

A good tenant understands they’re part of a larger community. They’re mindful of noise levels, respectful of shared spaces, and strive to maintain a harmonious living environment for everyone.

How to Find a Good Tenants

Finding a good tenant is one of the key landlord responsibilities. Here’s how you can boost your chances of landing responsible, reliable tenants:

Advertise Strategically

The way you advertise your rental can have a big impact on the type of tenants you attract. Start by writing a listing that’s clear and detailed, highlighting the best features of your property — like its location, amenities, and any unique perks. You should also be upfront about your expectations, whether it’s a no-smoking policy, pet restrictions, or specific lease terms. And make sure to get the word out on multiple platforms — e.g., popular rental websites, social media, and even community bulletin boards. The wider your reach, the better your chances of finding the right tenant.

Screen Prospective Tenants

Once you have interested applicants, it’s time to conduct comprehensive tenant background checks. Use a reputable tenant screening service — e.g., SmartMove — to verify credit history, criminal background, and rental history. And don’t forget to ask for references from previous landlords—those can give you a glimpse into their rental history and how they might treat your property.

Create a Detailed Rental Application

A well-crafted rental application can help you gather all the necessary information about potential tenants. Include sections for personal information, employment history, income verification, and references.

Set Fair, Competitive Rent

Setting the right rent price is key to attracting good tenants while ensuring you receive a fair return on your investment. Before setting your rent, research what similar properties in your area are charging. You should also consider offering incentives, like a slightly reduced rent or a free month, for tenants who sign a longer lease.

Trust Your Instincts

While data is important, don’t discount your intuition. If possible, meet applicants in person. This face-to-face interaction can reveal a lot about a prospective tenant. Pay attention to any red flags that come up during your conversations. If something doesn’t feel right, don’t ignore that gut feeling — it could alert you to potential issues.

How to Keep Good Tenants

Once you’ve found the perfect tenants, the next step is ensuring they stay. This way, you can avoid the hassle and cost of finding new ones and maintain a positive, stable rental environment. Here are some tips on how to be a great landlord and encourage your tenants to renew their lease year after year:

Maintain Open, Clear Communication

Good communication is the foundation of any successful relationship, including the one between a landlord and tenant. Whether it’s through email, phone, or an online portal, make it easy for your tenants to reach you and respond promptly to their inquiries or concerns.

Be Proactive with Maintenance and Repairs

When tenants report a problem, address it as soon as possible. Quick response times show tenants you care about their comfort and the property’s condition. Also, be sure to set up an efficient system for handling maintenance requests — e.g., online portal, email, phone, etc.

Respect Privacy

Don’t come to the property unannounced. Instead, give them notice before entering the property, and only do so when necessary, such as for repairs or inspections. Your tenants will appreciate your respect for their space.

Offer Lease Renewal Incentives

When it comes time for your tenants to renew their lease, offer incentives to make staying an attractive option. Some ideas include a free carpet cleaning, a slight rent discount, or even new appliances.

Be Fair with Rent Increases

If a rent increase is necessary, be transparent about why it’s happening and provide plenty of notice. Tenants are more likely to accept changes when they understand the reasons behind them, especially if they feel the increase is justified.

Show Appreciation

Small gestures can go a long way. Consider sending a holiday card or providing a small gift card on the lease anniversary to show your appreciation for their tenancy.

Addressing Issues with Tenants

Even with the best tenants, issues can sometimes arise. Here’s how to handle them professionally and effectively.

Act Quickly

If you notice a problem — whether it’s late rent, noise complaints, or property damage — it’s best to address it sooner rather than later. Bringing up issues early prevents them from escalating into bigger problems. Usually, a friendly reminder or a simple discussion can clear things up without any drama.

Be Firm but Fair

Enforce lease terms consistently. If your lease prohibits pets, don’t make exceptions for some tenants but not others. However, show understanding when appropriate. For instance, if a usually punctual tenant is late with rent due to a one-time emergency, consider waiving the late fee as a goodwill gesture.

Know the Law

Familiarize yourself with local tenant laws. For example, landlords must provide at least 24 hours notice in many areas before entering a property. Follow proper procedures for serious issues like evictions, which often require specific legal steps and timelines.

Offer Solutions

Work with tenants to find mutually beneficial solutions. If a tenant struggles to pay rent on time, you might offer to change the due date to align with their payday or set up a temporary payment plan to help them catch up.

Document Everything

Keep detailed records of all interactions, complaints, and resolutions. Having a record of these interactions can be very helpful if problems persist or if you need to take legal action later on. For example, if a tenant repeatedly violates a lease term, having a log of warnings and discussions could bolster your case for an eviction. Good documentation is also beneficial when dealing with claims on your landlord’s insurance.

Provide Clear Policies

Create and share easy-to-understand guidelines for common issues. For instance, you could put together a simple trash and recycling guide or a step-by-step process for submitting maintenance requests. This way, you’re helping prevent problems before they arise and ensuring everyone knows what to expect.

Conclusion

Protecting your property and keeping your tenants happy doesn’t have to be complicated. With the right strategies and the right insurance, you can achieve a smooth, successful rental experience.

As you manage your rental properties, it’s also important to understand the difference between landlord insurance vs. homeowners insurance. While homeowners insurance protects your primary residence, landlord insurance is specifically designed for rental properties, covering you against the unique risks that come with being a landlord.

Whether you need landlord insurance or are searching for cheap homeowners insurance, Mercury can help you find the right policy at an affordable price.

Contact us today for a fast, free quote!