First off, let’s define the “perfect tenant”.  The perfect tenant is a tenant who:

• Always pays the rent on time, without reminders
• Takes better care of your property than you would if you were living there
• Gets along nicely with the neighbors
• Adheres to all of the codes and policies of the homeowner’s association
• Has no inclination to ever move or buy their own house

Second, let’s understand that the odds of finding a “perfect tenant” to lease your home in a reasonable period of time are roughly equivalent to winning the lottery.

Money Talks
Desperate landlords often make bad decisions when selecting a tenant when they are worried about making the mortgage payment.  You must always have at lease six months capacity to hold a house vacant when owning a rental investment property.  Not that it should ever take you six months to find a good tenant.  (if so, your rent is either too high or your criteria is too strict.)  But in the event that a tenant does not pay their rent and/or you need to go through an eviction process, you will need to continue to pay the mortgage until you can get a new tenant in place.

Don’t Be Mr. Nice Guy
Most people are raised in a society where they are taught that good actions are important, and as such we make decisions based on feelings.  When it comes to renting, liking someone is not a good reason to rent your house to them.
Once you have set a minimum qualifying criteria for a prospective tenant, never adjust that criteria downward because you have a good feeling about a prospective tenant.  Often it is a landlord’s willingness to be the “good guy” that puts them in a difficult financial situation several months later when they are no longer getting the rent checks.

If your prospective tenant, regardless of how nice, cannot meet the minimum requirements for qualifying to rent your property, then do not rent to them.  Just be nice when you tell them no.

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