I am a landlord, how do I find a good tenant?  As a landlord, the experience you have with a tenant can have a significant impact on you, your property and your finances.  Therefore, it is essential to be very selective in choosing a tenant.

Here are several rules you can follow to protect yourself and your rental property:

1. Do a complete background check -  You need to know who you are renting to by doing an employment, credit, bank, criminal and prior rental history check on every potential tenant.  Verify all information and references going back five years if possible.  Ask how many people will occupy the home and do a criminal check on every adult that will be living in the home.  Even if that adult is not going to be financially responsible, you should do a criminal check because of potential legal liability.  Additionally, verify that their income is sufficient to cover the rent and all other debts they currently have.  Use the 50% debt to income rule (no more than 50% of their gross income should be used to cover all of their debts including the rent).

2. Get a Signed Written Lease -  All the terms of the rental must be in writing.    A verbal agreement is not enough.  At a minimum, the lease should state the names and ages of every person who will be living in the property; when and where the rent is due and when the rent is considered late, any late fees and return check charges; amount of security deposit, how it may be used and how it will be returned as well as how any deductions will be accounted for; contact information for complaints and repairs, how and when complaints and repairs will be handled; what if any alterations are permitted to the property; rules of the Home Owner's Association and the landlord's right of access. 

3. Collect a Security Deposit - You should collect a security deposit equal to one month's rent from every tenant.  If a person doesn't want to pay a security deposit or doesn't have the money to pay a security deposit, it is a good sign that they may not have the means to pay the rent.

4. Property Maintenance -   Substandard conditions can lead to safety, injury and legal issues.   Letting your property decline can lead to tenants withholding rent or moving out without notice.  If you want to attract and keep good tenants, you need to maintain your property.  Prior to the tenant moving in, make sure to take photos of every room and prepare a detailed list of the condition of the property to avoid future disputes over damages.

5. Insurance -  Take out insurance that covers rental property and liability.  You should also consider insurance that covers loss of rental income if your finances are tight.  Landlord insurance covers only the property and the rights of the landlord; therefore make sure that all tenants have renters' insurance. Damages to personal belongings or another person's property within a tenant's residence become the responsibility of the tenant

6. Hire a Property Manager - If you live out of town or don't want to deal with tenants, hire a professional property manager.  The manager will collect the rent, handle repairs and emergencies and any issues regarding the property.  

There are no 100% full proof method to finding a good tenant; however if you do your due diligence, you can eliminate most "tenants from hell."