Landlord: How to find a good tenant

How important is it to find a good tenant? Choosing a tenant too hastily can lead to non-payment of rent or damage to your property. In problem situations, a poorly communicating tenant means extra hassle for you as a landlord.

A good tenant is solvent and reliable. These two qualities are established in three stages: the application, the interview and the background check. The ideal tenant will look after the property as if it were their own, making your investment worthwhile.

In this article, we go through the main steps and tips to help you effectively find tenants and assess their suitability. These guidelines will help you make an informed decision and create a solid foundation for a long-term tenancy.

Are you ready to learn how to find a good tenant without the extra headache?

Definition of a good tenant

A good tenant is solvent and reliable. These are the qualities a landlord should emphasise when comparing applicants:

A solvent tenant pays the rent in full and on time. A credit check and employment history (and any pay slips) will help ensure that the rent does not exceed the applicant's income.
A reliable tenant respects the terms of the tenancy agreement and respects the property and neighbours. He or she will take care of the cleanliness and maintenance of the property and report any defects quickly. He communicates well with the landlord in case of problems and acts honestly in all respects.

Finding a good tenant is the key to a successful rental business. It has a direct impact on the return and meaningfulness of the investment, by keeping wear and tear on the property under control and ensuring that rental income is received on time.

The risks of a bad tenant

If a tenant doesn't pay their rent, doesn't reply to messages or causes damage to the property, the landlord may have to spend a lot of time and money sorting out the problems. In the worst case, the situation can even lead to legal action, such as eviction.

Non-payment of rent

When a tenant is unable or unwilling to pay their rent on time, the landlord suffers a direct financial loss:

Financial loss: a security deposit of three months' rent provides more security, but may deter some applicants. If the deposit only covers one or two months, the unpaid rent can increase significantly.
Legal costs: the collection of unpaid rent and the eviction process can cost hundreds of euros in legal fees, putting even more strain on the landlord's finances.
Vacant dwelling: a dwelling may be left empty during the eviction process, leading to a loss of rental income until a new tenant is found. Every week without a tenant increases the financial pressure.

Damage to the dwelling

Careless or negligent tenants can also cause damage to the property, which increases the landlord's repair costs:

Surface damage: patching holes in walls, repairing floors or replacing light bulbs can cost hundreds of euros.
More serious damage: water leaks or structural damage can require thousands of euros in repairs and reduce the value of your home.
Cleaning and condition of appliances: poor cleaning and poorly maintained appliances increase the workload and repair costs.
Long-term effects: moisture accumulation or equipment failure can cause wider problems, resulting in significant additional costs.

Compensation in the event of rent arrears and damage to the dwelling

Rent insurance, landlord's insurance and tenant's home insurance may cover some losses due to non-payment of rent or damage to the home, but they have their limitations.

Rental guarantee:
- Usually the equivalent of 1-3 months' rent to cover unpaid rent and minor damage.
- If damages or unpaid rent exceed the amount of the deposit, the landlord must obtain compensation by other means (e.g. legal action).
Landlord's insurance:
- Can cover more extensive damage and, by agreement, also part of the unpaid rent.
- Content and coverage depend on the policy conditions; not all policies include protection against loss of rent.
Tenant's home insurance:
- Usually covers the tenant's property and some damage to the dwelling, but not usually structural damage or loss of rent.

Prolongation of problem situations

Failure to reply to messages: when a tenant does not respond to communications, it is difficult for the landlord to resolve problems quickly. This can lead to delays in collecting rent or dealing with repair needs.
Delay in dealing with problems: small faults or problems can become big if not dealt with in time. For example, small water leaks can lead to major water damage if not addressed immediately.
Prolonging the eviction process: communication problems can prolong the eviction process, increasing both time and financial costs for the landlord.

An attractive advertisement brings choice

Prepare the apartment, take good quality photos and write a rental ad that will attract the right applicants. In this section, we'll walk you through how to prepare your property and write an effective rental ad.

Preparing your home

A well-prepared home will stand out from the competition and make a positive first impression.

Cleaning and organisation: make sure the apartment is clean and tidy. Take particular care of the cleanliness of the kitchen and bathroom, as these are often under scrutiny by tenants.
Minor repairs: make the necessary minor repairs, such as replacing broken light bulbs, checking seals on windows and doors, and repairing any dents or scratches on the walls.
Lighting: a well-lit home looks more spacious and inviting. Make sure that all lighting works and consider using supplementary lighting in dim areas.
Styling: place a few pieces of furniture or decorative objects to highlight the best aspects of your home. For example, a neatly arranged living room or an attractive kitchen can make a bigger impression than a completely empty space.
Appearance and atmosphere: create a welcoming and neutral look that will appeal to a wide range of tenants. Avoid overly personalised interior design elements that may limit tenants' choice.

Preparing a rental housing advertisement

The quality of the rental advertisement has a direct impact on the number and type of applicants who are interested in the property. A well-written advertisement will contain clear and comprehensive information about the property and will be visually appealing.

Attractive headline: choose a headline that includes the main selling points of the home. For example, "Bright 2h + k, balcony & stunning views" will immediately convey the most relevant information and attract interest.

Clear and comprehensive description: describe the location of the dwelling, nearby services and amenities. Positive and concise text will help the tenant to understand what kind of accommodation the property offers.

Location: mention the district or region, highlighting public transport links, local shops, schools or outdoor facilities.
Facilities and equipment: please specify the number of rooms, kitchen equipment and bathroom facilities. Please also mention any additional facilities, such as storage or a parking space.
Amenities: showcase the home's special features, such as a balcony, modern appliances or energy efficiency.

High quality photos: good photos are essential as they give an immediate impression of the condition of the property. Invest in lighting and photograph all the important spaces - living room, bedroom, kitchen and bathroom. If you wish, you can also include a floor plan to help you visualise the spaces.

Clear contract terms: state clearly the amount of rent, the duration of the lease and any additional charges, such as electricity or water. Include details on whether pets or smoking are allowed. Example: 'Rent €700/month, including heating. Heating: € 700,000, including heating, pets allowed, no smoking. No smoking, no pets allowed. 12-month lease."

Contact details and application process: clearly indicate the number or email address where applicants can be contacted. Also indicate what documents you would like to receive before a possible contract (e.g. salary slips or employment contract). If you are offering accommodation within the screening period, please indicate when the screening will take place or how it will be arranged.

Added value: stand out from the competition by offering a 3D floor plan, virtual tour or video, for example. This will give applicants a better idea of the space and feel of the home before they commit to the display.

Assessing solvency and reliability

The key to finding a good tenant is ability to pay and reliability. These are assessed through an application, interview and background check .

The ability-to-pay assessment allows the landlord to ensure that the selected applicant is financially capable of making regular rent payments and has a stable income that will allow for a long-term tenancy.

The reliability assessment allows the landlord to ensure that the chosen applicant is responsible, communicative and able to maintain a good tenancy relationship, reducing the risk of extra effort and money being spent.

Processing the application

The ability to pay is first assessed on the basis of applications. The general recommendation is that the applicant's monthly income should cover at least a third of the rent. For example, if the rent is €700 per month, the applicant should earn at least €2 100 per month.

Income requirement: ensure that the applicant's income exceeds one third of the monthly rent.
Employment details: the name of the employer, the length of employment and proof of income (such as pay slips) on the application form indicate the stability of the applicant's employment.

The assessment of credibility starts with an examination of the information in the application and the care taken in filling it in.

Previous rental history: find out if the applicant has paid their rent on time and kept their previous accommodation tidy.
Reasons for moving: pay attention to the reasons why the applicant wants to move. An established reason (such as a growing family) is often more reliable than repeated short-term tenancies.
Quality of the application: check whether the application has been properly completed. A diligent application indicates responsibility and a willingness to commit to the tenancy.

How to handle an interview

To assess your ability to pay, you can discuss your current employment situation, sources of income and future plans. This will tell you whether the job is permanent or temporary. The interview may also cover other financial commitments:

Employment status: ask whether the applicant is employed on a permanent or temporary basis, and what their career prospects are.
Income and additional income: find out if there are any side jobs or other sources of income.
Future plans: assess the applicant's long-term financial stability, for example whether the employer is stable or whether the applicant has clear plans for where to live.

Reliability can be further explored in an interview, which allows for personal contact with the applicant. This will give you a better idea of his/her behaviour and attitude to the tenancy.

Communication skills: check how fluently and openly the applicant communicates. This will tell you how cooperation is likely to go during the tenancy.
Responsibility: ask about the applicant's attitude to the maintenance of the home and any damage. Constructive answers indicate a sense of responsibility.
Housing needs and habits: find out if the applicant has pets, smokes or has any other special needs that might affect housing.

Background check processing

The last, but most important step in assessing your ability to pay is a background check.

Credit check: find out if the applicant has any default or other financial problems, for example through Suomen Asiakastieto Oy.
Comparison of employment certificates and pay slips: make sure that the income declared in your application is the actual income.
Additional evidence: if there are any questions (e.g. irregular income), you can ask for tax certificates or bank statements.

The final step in the credibility assessment is to verify the accuracy of the information reported by the applicant.

References from previous landlords: these will show whether the applicant has fulfilled their obligations under previous tenancies.
Criminal record check: if you are concerned about the security of your home, you may want to consider requesting a criminal record check.
Employer's contact details: check that the employment relationship and workplace declared by the applicant are correct. A stable employment relationship and a good reputation in the work community often indicate a reliable person.

Drawing up a rental contract

Once you have found a reliable and solvent tenant, it's time to draw up a clear and comprehensive tenancy agreement. This will give you extra protection as a landlord and prevent any misunderstandings during the tenancy. Below are some key points to consider when drawing up a tenancy agreement:

Duration of the contract
- Indefinite: A flexible option where the tenancy continues until terminated by either party in accordance with the legal notice period.
- Fixed-term: agreed for a specific period, for example 12 months. The contract automatically expires at the end of the period, unless it is extended.
Rental amount and payment terms
- Rent amount: clearly specify the monthly rent and any extra charges (e.g. water, electricity, internet).
- Date and method of payment: indicate when the rent is due (usually at the beginning or middle of the month) and the method of payment (bank transfer, direct debit, etc.) agreed between the parties.
- Security deposit: please indicate the amount of the security deposit and how it will be handled at the end of the tenancy. Please also indicate where the security deposit will be deposited.
Use of the dwelling and responsibilities
- Maintenance: define what the landlord and tenant are responsible for. In general, the tenant is responsible for minor maintenance (e.g. changing fuses), while the landlord is responsible for major repairs.
- Pets and smoking: clearly state whether pets or smoking are allowed in the apartment.
- Renovation: do I need the landlord's permission to paint or make other changes?
Period and conditions of notice
- Indefinite contract: The tenant's notice period is usually one calendar month; the landlord's notice period varies according to the length of time the tenant has lived in the property.
- Fixed-term contract: As a rule, it ends on the agreed date. Termination before the expiry date is normally only possible in the event of breach of contract or on the basis of specified conditions.
Special conditions and additional clauses
- Subletting: state whether the tenant has the right to sublet the dwelling or part of it to others.
- Insurance: you can require the tenant to take out home insurance. You can require your landlord to require the tenant to provide insurance.
- Rules and regulations: for example, the building society's rules of order or instructions on the use of common areas can be part of the rental agreement.
Signing and documentation
- Signatures: the contract must be signed by both the landlord and the tenant. Make sure that each party gets their own copy.
- Documentation: if necessary, attach a floor plan, a description of the condition of the apartment or a list of its fixtures and fittings. This will make it easier to assess any damage at the end of the tenancy.