Need a Good Tenant? Ask a Good Tenant!
Stuart, a landlord we know, starts his search for new tenants in the same way every time he’s faced with a vacant rental unit. You might think that means placing an ad on Craigslist.com, or uploading photos to RentJungle.com. And of course, he puts a “For Rent” sign in the yard, right?
Well, the last one is correct—but as soon as the sign’s in the yard, he checks in with a few of his good tenants. If they have friends or family members who are planning on moving, Stuart wants to know. And, when they refer a new tenant who passes the standard background screening process and signs a one-year lease, Stuart pays the referring tenants a finder’s fee.
How can asking current tenants for referrals help landlords fill vacant units? In Stuart’s experience, his tenants enjoy having their friends live nearby. (Sometimes, they even like having family members live nearby!) Stuart’s tenants know that he is strict about who lives in their apartment building. And, they know if they help fill the building with good people, it’s good for everyone. They’re happy to recommend people they know are solid renters. So just by asking a few good tenants about referrals, he usually gets three or four interested parties coming by to view the open unit. Then, he goes through the standard lease application and background check process.
Have you ever considered paying a finder’s fee to tenants for referring their friends and family members to your rental property? It could be a win-win situation: landlords love good, solid tenants, and everyone likes to be rewarded—especially with cash!