Tenant screening is essential, especially if you're a landlord or a property manager. It can save you from thousands of dollars in court costs, fees, and lost revenue. Conducting a thorough and consistent tenant screening minimizes most risks of being a landlord like non-payment, late payment, property damage, and tenant eviction.
You need to know how to conduct a tenant screening if you are a newbie in the world of rental property. The following tips will help you screen prospective tenants for your property.
1. Set requirements
Set a list of requirements for your prospective tenants. Here are some of the things you need to ask that will help you determine a qualified tenant:
⌂ Income: As a landlord, you need to make sure your tenants have enough income to cover the rent. It is to avoid non-payment issues that will probably lead to you spending on the cost of an eviction. Make sure to accept tenants that can cover their rent even if unexpected expenses happen.
⌂ Employment and landlord references: Landlord and employment history references from your prospective tenants are important pieces of information. It would help you verify if they provided accurate information on their application. It will also indicate information about their previous rental condition and if they are currently employed.
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⌂ Credit history: It is one of the most important criteria you need to evaluate the potential tenant's willingness and ability to pay rent on time. An applicant with a good credit score is more likely to pay rent on time. Run a credit check for each applicant you are considering. It will put your mind at ease, knowing that your tenants have good records of paying on time.
⌂ Eviction: Landlords should also check id the applicant has been evicted. You can reconsider evicted applicants from renting your property, or you can ask them more details about the eviction.
⌂ Criminal history: You should also conduct a tenant criminal background check. It is crucial to prevent any risk to your property. Running a background check will provide a detailed report of the applicant's past. Keep in mind that you are putting yourself and other tenants at risk if you accept applicants with a serious or lengthy criminal record.
2. Prescreen applicants
Inform prospective tenants about your screening process before they fill out a rental application. You can prescreen applicants by checking their social media accounts. It will help you see if the applicant has uncouth behavior through their Instagram and Facebook accounts. This is an immediate red flag for landlords. You can also utilize LinkedIn to verify their employment history.
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3. Request an application
After prescreening, have your prospective tenants complete a rental application. Create your personalized rental application using Microsoft Office template or other application forms available online. You can use rental applications from local real estate associations as a sample.
Make sure your application covers every information you need to know about the applicant. Remember to include the requirements you set. It's best to choose an application that provides personal, employment, and financial information.
4. Interview the tenant
After you verify all the information provided by the applicant, consider interviewing the tenant. A phone call interview will be enough to know the tenants better. It will also help you find out about their lifestyle.
Most importantly, be mindful of the Fair Housing Act. It stipulates that no landlords can discriminate tenants based on their sex, religion, race, national origin, family status, disability, and color.
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