What Makes a "Good Tenant"?

[Peter MacKercher]

I was just asked what my "average tenant" is. I realized that that's changed over the years, and, at least for me, good tenants seem to be partially related to being a good landlord.

When I stated out I wasn't a good landlord -- I tried to skimp on maintenance to maximize profits. Eventually I realized that was hurting profits, and by trying to be a better landlord I also saw that my tenants were becoming "good". My average tenant now is placed for 2+ years, some for 5+, and I rarely have maintenance issues. I also plan for repair costs, putting $15,000 per building (@ 10% of rents monthly) into a sinking fund to deal with any maintenance issues asap. Part of that is because I believe that anyone who goes into my units are a potential renter, so keeping them near showing shape is just good business practice. It also shows that you value your properties' condition, which I think helps reinforce the idea that the tenants should respect them too.

So, it's your turn: What do your "good tenants" look like? Do you think that's related to your own business practices or simply specific screening criteria? I think I have good longevity but I don't seek applicants who say they're going to stay for a long time -- those tend to be the tenants that leave the soonest, in my experience. Instead I look for stability in employment, credit, no criminal background and so on. Maybe people who have stability want to maintain that. That might explain why, as a landlord, if you can provide a consistent relationship and a well-maintained property your tenant is more likely to stay long-term.