To find qualified tenants, landlords should conduct thorough screenings, including background checks, financial assessments, and reference checks from previous landlords. Establishing baseline requirements, such as a rent-to-income ratio of two to three times the rent, is crucial, though rising living costs may complicate this. For first-time renters, character references can be useful. Cosigners may be required for applicants with limited rental history. Landlords must adhere to all housing laws, including fair housing regulations, to avoid discrimination.

Marcia Castro Socas, an experienced landlord, emphasizes the importance of the landlord-tenant relationship in rental real estate. She advises against solely seeking the cheapest properties, as they may require unexpected repair costs. Castro Socas also suggests not letting market news dictate investment plans, sharing her experience of holding onto properties during the 2008 market collapse. Additionally, she highlights that successful property management involves fostering good relationships with tenants, which can lead to increased income and reduced vacancies.

In Q3 2024, delinquency rates for commercial and multifamily mortgages rose slightly, according to the Mortgage Bankers Association. The survey covered $2.6 trillion in loans, revealing that 96.8% of loans were current or less than 30 days late. Delinquency rates increased for office properties (7.8%) but decreased for lodging (5.6%), retail (3.8%), and industrial (0.6%). CMBS loans had the highest delinquency rates at 4.8%, remaining unchanged. Overall, the commercial mortgage market shows varied performance across different property types.

Cap rates are crucial in commercial real estate for assessing a property's profitability, calculated as the ratio of net operating income to market value. They typically range from 5% to 10%, with higher rates indicating greater risk. Influencing factors include location, property type, and tenant stability. While useful, cap rates have limitations and can be improved through renovations, management, and repositioning.