“Getting The Best Tenants Through A Resident Screening”

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.

Check out these tips that will help you become one.

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.

Screening Application

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.

 

 

 

Suggested Articles:
1. Property Manager’s Obligations During A Lease Term
2. 7 Tips In Starting An Apartment Lease
3. Rental Background Check 101 For Property Managers

Disclaimer: This commentary is a matter of opinion provided for general information purposes only and is not intended to be taken as investment or trading advice under any circumstances. Information and analysis above are derived from sources and utilizing methods believed to be reliable, but we cannot accept responsibility for any losses any person may incur as a result of this analysis. Individuals should consult with their personal financial advisers. By using this web site or any information contained in it, the user specifically and expressly agrees that no advisor-client relationship is created between said user and any author, owner, executive, or principal of this web site by either use of this web site, or by any information, product, or service offered by or on this web site. No express or implied guarantees or warranties as to investment or trading results are made, and any perceived insinuations of such are hereby expressly disclaimed.

Article: Getting The Best Tenants Through A Resident Screening

 

If you have time please share:
Social media & sharing icons powered by UltimatelySocial