Factors in Renting your investment property

1.Tenant Screening: Credit Scores and Income Ratios

a) Credit Score Requirements

• 740+  Ideal for high-end rentals where risk of property is higher than cost of loosing a tenant

• 700-740:  Ideal for high-end rentals or competitive markets, reducing default risk but shrinking the applicant pool

• 650-700: Widely considered the "sweet spot" for balancing reliability and accessibility

• <650: Higher risk but may be necessary for lower-priced properties, often paired with additional safeguards (e.g., larger security deposits).

b) Income Ratios

In high-cost areas like Northern VA, a 3x multiplier is common, but flexibility (e.g., accepting co-signers for 2.5x) can reduce vacancies

2. Pet Policies: Boosting Demand and Revenue

Allowing pets increases applicant volume by 2x and reduces vacancy periods. Key considerations:

• Pet Rent / Fee: Charge $25–$75/month or a one-time fee to offset wear-and-tear

• Screening : Require pet resumes with vaccination records, training certificates, and references

• Breed Restrictions: Avoid blanket bans; evaluate pets individually (e.g., a calm Rottweiler vs. a noisy Chihuahua)

Properties with pet-friendly policies often command 11.6% higher rents and retain tenants 2–4 years longer*.

3. Property Descriptions: Transparency Drives Quality Tenants

Detailed listings reduce mismatched applications and tenant turnover by 30%*. Compare:

Highlighting features like updated appliances or noise restrictions sets clear expectations, attracting responsible tenants*.