Picking the Perfect Tenant
How to Find Great Tenants and Protect Your Investments
As a real estate investor, your tenants can make or break your portfolio. Good tenants mean steady income and low stress, while bad tenants can turn your dream property into a nightmare. So, how do you ensure you’re selecting the right ones? Here are four critical qualities to look for in your tenants—and how they can protect your investments.
1. Stable Income
Your property is an investment, and steady rental income is the return you count on. Tenants with a stable income provide security for you and your property. Look for applicants who earn at least three times the monthly rent. Why? It’s a buffer that helps them cover unexpected expenses while ensuring rent gets paid on time.
Pro tip: Does their job show long-term promise? Tenants in growing industries—like healthcare, skilled trades, or IT—are more likely to maintain steady income.
2. Length of Stay
Short-term tenants often get a bad reputation, but for investors looking to scale, they can be a strategic asset. Tenants staying 2–4 years may be in a transition period, like saving for a home or moving for work. This allows you to adjust rents or upgrade the property when they leave.
On the flip side, long-term tenants provide stability, but they may limit your ability to increase rents or reposition the property. What’s your strategy—short-term gains or long-term stability? Both have their
3. Good Credit
A tenant’s credit score provides a glimpse into their financial habits. Scores above 660 generally indicate that a tenant has a history of paying bills on time and managing their finances responsibly. Think of it this way: just as banks use credit scores to decide whether to lend money, landlords can use them to decide who to rent to.
Skipping a credit check can expose you to unnecessary risk. Choosing tenants with good credit is a simple yet effective way to protect your investment.
4. Tenant Behaviour
Tenant behaviour can predict how they’ll treat your property and your time. Do they respond to messages promptly? Are their applications complete and accurate? Little things like this reveal a lot about their reliability.
Want to go deeper? Call their references—landlords, employers, even colleagues. Their past actions will tell you if they’re the type of tenant who pays rent on time or one who creates unnecessary stress. Are you doing enough due diligence to protect your investment?
The Bottom Line
Great tenants are the foundation of a successful rental property. By focusing on financial stability, creditworthiness, and respectful behaviour, you’re not just finding tenants—you’re securing your investment’s future. What steps will you take today to elevate your tenant screening process and build a more reliable portfolio?
Joseph Costanza | ZA Suites
