“Getting The Best Tenants Through A Resident Screening” written by Mike Marko
Getting the best tenants means a harmonious and trouble-free residential environment.
Tenants’ attitude and habits in the rental place are among the factors that contribute to either a healthy or unhealthy rental place. If you approved tenants so easily without doing a resident screening on them, you can put your rental place at risk.
Choosing the right tenant is a business decision. You need a tenant who will take care of your property and pay rent on time. Having good tenants can also attract more tenants.
That’s why the best advice you will need here is to step up on your efforts on a good resident screening procedure.
Before approving a prospective tenant, make sure that they follow certain qualifications first. To do so, here are 5 guiding tips you should know about doing a resident screening.
5 Guiding Tips to Resident Screening
Getting the best tenants can save you from having problems with the rental payments. It can also have a significant financial effect that puts your rental business at risk. You need to make sure that you’re being extra cautious in choosing your tenants if you want to be stress-free. To be able to select the best tenant for your residential business, you need to be a resident screening pro.
1. Verify the Source of Income
Tenant income verification is a key part of the resident screening process. It helps ensure that prospective tenants can meet their monthly rent obligations.
This income verification will show if they have the ability to pay the rent on time or not.
As a property manager, you should be able to calculate the minimum amount the tenant should earn to pay rent. Or, you can compute for the daily income the tenant has to earn monthly to be able to pay rent.
You must also set a standard or required amount of income. The tenant should earn at least twice the amount of the monthly rent at the very least.
If their income can’t meet your requirements, then you can freely deny their application.
2. Tenant Must Not Have Any Record of Evictions
There are a few possible reasons why tenants have eviction reports on their application.
First, they might have an unresolved misunderstanding with their previous landlord.
Second, if they’re unable to pay rent or have unpaid rent.
Third, they may have violated certain rules from their previous rental place.
Tenants who were evicted from their previous place are at a greater risk for future problems.
Those are reasons that you may not wish to experience in your rental property
That’s why you must make sure that your tenant doesn’t have any record of evictions or termination. If they do, they must be able to provide a good reason for it.
3. Make a Reference and Background Check
Making a reference and background check is one of the things that you shouldn’t forget about when doing a resident screening. Conducting this checks ensures you that the applicant is a good candidate to become your tenant.
You can ask references from their previous landlords. It can be a reliable indication of what you’ll be expecting from the applicant.
A background check is also useful to determine if the applicant has any record of criminal activity in the past. This knowledge is very important and makes you an empowered property manager.
This makes you a more informed and empowered property manager.
Pre-Screen Your Applicants
A pre-screening process begins when you first make contact with a prospective tenant. It’s also important to screen during your first phone call with the tenant their receptibility in responding to you and your requirements.
A face-to-face meet up provides an opportunity to further emphasize your requirements.
Your rental application form is a vital tool in the resident screening process.
During your meetup with the applicant, make sure that you let them fill up the screening application form.
The resident screening application must consist of:
- Personal information, including name, telephone number, address, and driver license number.
- Social Security Number and date of birth.
- Contact information for current and previous landlords.
- Employer contact information.
- Information regarding any prior evictions or judgments filed against the applicant.
- Release of information signature.
4. Run a Credit Report
A credit report refers to the process of verifying if the applicant can really pay for the rent. It checks the tenant’s credit score, and the individual’s detailed payment history for credit cards, loans, and mortgages.
Requiring a credit report gives you an unedited view into how tenants have handled their financial obligations in the past. It’s also a factual statement and it can’t be easily faked.
That’s why requiring a credit report is one of the important things you need to do in a resident screening process. It easily gives you a reason to either accept or deny a tenant.
5. Why Resident Screening Is Important
As the property owner, you have to ensure that you have a process for screening potential residents.
Resident screening not only protects your property but as well as your credibility as a property manager.
Through a resident screening, you can find applicants that will fit your criteria. This also helps protect you from tenant frauds.
Remember that resident screening must be done before you let your prospective tenant sign on a rental agreement.
Final Thoughts on Getting the Best Tenants through a Resident Screening
That’s it for today’s blog on getting the best tenant through a thorough resident screening process. As a property manager, one of the important things you do is to screen tenants carefully and properly.
Basically, the type of tenants you allow can be a reflection of what kind of environment you would like to foster. It can also describe you as a property manager.
For more questions on resident screening, you can leave it in the comments below.
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