Real Readers Inquire About Traveling and Tenant Screening

Are you planning to travel the world while managing property? This dual endeavor can seem daunting, but with the right strategies, it can be both fulfilling and profitable. Let's dive into some essential insights and tips that can help make this journey smoother.

What To Do With Your Belongings When You Travel?

One of the most pressing concerns for aspiring long-term travelers is managing personal belongings. This was exactly the question Noelle posed when she reached out, curious about how to handle her possessions while pursuing a lifestyle of travel and adventure.

“Hi! You’ve inspired me so much with your drive to be location independent. I was just curious: Did you sell your home to travel, or did you have a place to return to?”

In my case, the decision was straightforward. To fund my travels, I opted for a minimalist approach, selling nearly everything I owned. This included my car, furniture, and many personal items, converting them into cash that fueled my travel dreams.

For items that couldn’t be sold, I chose to donate them to local charities. The few things I held onto, such as my snowboard, were stored with friends. This strategy not only freed me from the burden of maintaining a home but also minimized ongoing expenses.

As I was renting at the time, I aligned my travel plans with the end of my lease, making the transition smoother. This meant making a significant life change in just one week: quitting my job, vacating my apartment, and boarding a flight to Spain with a one-way ticket.

If your travel plans are shorter, the approach might differ. For homeowners, renting out your property can be lucrative. Many successful travelers, like a woman I know who lives in Paris while her properties in Atlanta generate passive income, exemplify this approach. The advantages are clear:

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• Retain ownership of your property
• Generate income to fund your travels
• Maintain a home base for future returns

Navigating the Path from Tenant Showings to Move-Ins

Transitioning potential tenants from the showing phase to signing the lease can be challenging. Trevor, a real estate enthusiast, expressed this concern, seeking advice on how to effectively communicate with prospective tenants.

“I have two rentals and my own home. I enjoy learning about real estate investing, but I struggle to convert showings into actual tenancies. What information should I provide? What questions should I ask?”

My experience echoes Trevor's dilemma. After a showing, it’s not uncommon for potential tenants to express interest but then fail to follow up with an application. My approach is straightforward: if they aren't proactive enough to apply, they likely aren't the right fit for my rental.

For tenant screening, I utilize TransUnion MySmartMove. This service allows me to check their credit scores and criminal history, providing valuable insight into their reliability.

It's crucial to verify their landlord references by calling previous landlords directly, rather than relying on the contact information they provide. A common tactic among potential tenants is to use friends as fake references, which can lead to complications later.

When considering credit scores, it’s important to weigh the entire applicant profile. One of my best tenants had a low credit score due to a foreclosure; however, his consistent payment history on other bills and his stable income of nearly four times the rent justified my decision to approve his application.

Three Additional Essential Tenant Tips

In addition to the aforementioned strategies, here are three valuable tips contributed by Karen, a seasoned landlord with over two decades of experience:

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#1: Observe Their Vehicle

During a showing, take note of the prospective tenant's vehicle. The condition of their car can provide insights into how they might treat your property. A clean car often indicates responsibility and care, while a cluttered vehicle filled with trash may suggest the opposite.

#2: Visit Their Current Home

If feasible, arrange a visit to the tenant's current residence. This allows you to gauge their living standards and whether they align with your expectations. Additionally, it provides an opportunity to identify pet ownership, which might be relevant if your lease prohibits pets.

#3: Utilize Technology for Pre-Screening

Consider using an answering machine or Google Voice for initial calls from potential tenants. This can help you filter candidates based on their communication style. For example:

• A professional, detailed message is a good sign.
• Conversely, a casual or disorganized message might indicate a lack of seriousness.

By pre-screening, you can save time and energy by focusing on candidates who present themselves well.

Understanding Tenant Background Screening

Tenant screening is a critical process that helps landlords make informed decisions about potential tenants. It involves checking credit history, rental history, and criminal background to assess the risk of renting to an individual.

• Credit checks: These provide insight into the applicant's financial responsibility.
• Rental history: Previous landlord references help verify the individual’s behavior as a tenant.
• Background checks: These can reveal any criminal history that may affect their eligibility.

Common Red Flags in Tenant Applications

When reviewing applications, keep an eye out for some common red flags that might indicate potential issues:

• Frequent changes in employment or income instability.
• Multiple evictions or poor rental history.
• Low credit score or unexplained gaps in credit history.

Is Self-Screening an Option?

Many landlords wonder if they can conduct a self-screening. The answer is yes, and it can be beneficial for understanding your own rental eligibility. By checking your credit, reviewing your rental history, and understanding your finances, you can better prepare yourself for the rental market.

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