05 Jan
Mexico Rental Property: Top 10 Items to Review to Get a Good Tenant
We all know that there are no guarantees in life. As much as we look to others for reassurances about many everyday things, no one can guarantee that all outcomes will be favorable and even more so in the Real Estate industry Once we have found an ideal investment property from the Mexico market, It is up to us, as Landlords, to minimize our exposure to risks on our Properties So after a good marketing effort to find tenant prospects, our next question isHow do I know if I m getting a good Tenant in Mexico
The truth is we never know how our Tenant will uphold their obligation of the lease agreement or the word in which they promise to treat our Mexico rental property as if they owned it themselves. There are steps that we should take prior to renting to a Tenant.
Outline your qualifying criteria. This criteria should list exactly what you will look for and what you will automatically decline an application for. Use this criteria for EVERYONE.
MEXICO RENTAL PROPERTY APPLICATION CHECKLIST
1) Have everyone fill out an application in Mexico Did they fill out the form completely
2) Check at least the last two years of residence history, whether they owned their home or they rented from someone else. Look at their payment history, did they write NSF checks for the rent, did they always pay on time or were they often late Did they leave the rental damaged or did they get all of their security deposit back Would the previous Landlord rent to them again
3) Look at the last two years of employment history. How much income do they make It should be at least three times the amount of rent that they will pay. How long have they been at their current employer
4) Pull a credit report, if available. How responsible are they in paying their current and past credit obligations How much debt do they currently owe Is their income enough to cover their debt and the rent payment Does the applicant have a negative credit history If so, ask the applicant to write an explanation letter. Is the explanation reasonable or was the negative credit due to lack of responsibility How long ago
5) Look at their criminal history. I personally decline on felonies but will look at misdemeanors on a case by case basis, unless it s assault. Your tolerance level may be a little different.
6) How many occupants will reside in the property compared to the size of the home A good rule of thumb is two or three people per bedroom.
7) Will they have pets If so, get the details on the pets such as breed, size age, etc.
Obtain their vehicle information.
9) Get references. When asked for references by someone, it always cracks me up because I think,do you really think that I would give someone a bad reference Ask the references this question,If asked to co-sign for the applicant, would you Although your intention with this question is not to get a co-signor, the answer that you get will be a good indication of how responsible the reference thinks that the applicant is.
10) Look at the overall picture of the applicant. Do they have negative credit but outstanding rental history Did they just start a new job but their previous employment reflected stable tenure and they changed because they d make more money or were they laid off Can they get a co-signor for the lease Do they want to move in quickly or do they want you to hold the property vacant for them for 30-days
There are so many indicators down in Mexico that you can look at to help you determine your risk factor with an applicant. However, the majority of applicants that will apply for your Mexico property will have something negative in their credit, rental or employment profile. It will be up to you to examine deeper, to probe into the why s of the negative and to weigh your risks with the applicants. Whatever you do, treat everyone the same, use the same qualifying criteria and ask questions when you need to. Good luck having someone apply for your new Mexico property is very exciting!
Kami Kemp is both a Texas Realtor and Real Estate Broker in Arizona with Prime Properties. She is a member of the Texas Association of Realtors, the National Association of Realtors and National Association of Residential Property Managers. She began her career in Property Management and Leasing in 1990, has served on various education committees through local associations and has taught many Fair Housing compliance and marketing classes throughout her career. www.TOPmexicorealestate.com 512-879-6546
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