What To Look For When Screening Tenants

One of the most important things you can do for your rental properties is screen tenants. It helps you weed out problem tenants and allows you to get to know a tenant before they move in. As you perform a thorough screening, there are things you should look out for to ensure that you are renting to quality tenants who will be less likely to be problematic.

Rental history

An applicant may have rented at places before, so looking into their rental history is a great way to get to know them as a tenant. Ask for references from previous property managers. This will allow you to see who they are as tenants. Be sure to ask the previous property manager questions about the potential tenant’s cleanliness, payment history, and overall personality.

When you talk to the potential tenant, ask them how long they have rented their previous properties and why they left and are leaving. This information will give you an idea of whether or not they are a good fit for your properties as well as an idea of who they are. Ask if they have ever been evicted and why. Just be sure to check with the previous property managers to verify.

Pets

As a landlord, the question of allowing pets is crucial. You may only allow small pets like hamsters or fish, or you may opt to allow cats and dogs. Ask the potential tenant if they have pets. If they say yes, ask what kind, their size, and if they are destructive. If they do not have pets, they may say something about being allergic. This can be an issue if you allow pets as the dander may be in the halls, even if the pet is a cat who stays in the property.

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Potential roommates

An applicant may be putting in the application for themselves with the hopes of sneaking in roommates after they are accepted. However, this can be bad because you do not have any information on roommates moving in. They may not pay rent and they may have been a bad tenant elsewhere in the past. If it comes up that the applicant is planning on bringing roommates, ask them if the roommates have submitted their own applications. Remind them that each person moving in needs their own application to get a fuller picture of who everyone is as a tenant.

Income and employment

Your main income as a property manager is tenants paying their rent in a timely manner. Ask questions about their job and how steady it is. Do credit checks to be sure they can pay rent consistently and ask their employer about what kind of person the applicant is. Make sure the applicant has enough income to cover rent each month so they do not get behind. The tenant’s income should be three times the cost of rent.

Background check

On your rental application, be sure to have a section where the applicant authorizes a background check to be done. This will allow you to rest assured that your property is being taken care of and the tenant can be trusted. The background check should include a credit check, which will ensure the tenant can pay rent promptly. The background check will also provide a criminal background check and an eviction background check.

Red flags

You know what kind of tenant you want and you likely have a list of tenant red flags that you should look out for. If you are worried about property damage, be sure to ask the potential tenant if they are smokers. While you may have rules to only smoke outside, the tenant might not follow the rule. Ask if the tenant is able to sign a one-year lease. This will show that they are committed to remaining in one place and will solidify your income for a year. You will also not have to go through filling vacancies every few months. Check to see if any others may be “spending the night” more than just one night. As mentioned before, if a tenant is moving in with roommates, each roommate needs to fill out an application so you can know who is living on your property.

Keep it legal

While these are all important things, there are things that you are not allowed to judge your potential tenants on. Legally protected classes include race, color, national origin, religion, sex, familial status, and disability. Also, you legally cannot discriminate against someone who is seeking housing assistance. Be sure that you are familiar with all of your local, state, and federal laws so that you avoid legal issues down the line.

Screening tenants is crucial for ensuring a positive experience for you, the applicant, and your whole rental property community. Knowing what to look for is important so you can choose the best tenants for your property.