How To Screen Applicants To Find The Best Tenant
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Screening for the RIGHT Tenant
Choosing the right tenants for your rental can make owning a rental a breeze or a giant headache. They become an asset to your rental property. Here are the two quick tips to help you choose the right tenants.
Take your time
Your prior tenants move out, and you start to panic. You picture your bank account in the red where the rent is supposed to be. In desperation, you list your property and pick the first applicant that wants to be your renter. Stop, breath, and take a moment to think. If you take your time, set criteria for upcoming tenants, then it can benefit you in the long run. Again, if you choose the wrong tenant, it could be a lingering headache that will cost you time and maybe even cost you more money in the long run.
Criteria
So, what should you look for in a tenant? What standards are the most important? When some landlords meet their tenants, they go with their gut at the expense of documents that show they are capable tenants. It’s vital to start with a detailed application that accurately vets your tenants. The form will only ensure you have the right tenant for your rental property. Some critical criteria to consider are the following:
● Employment history
● Rental history
● References
● Background check
If someone had four jobs in four years, it might be hard to imagine them with a stable income to pay the rent.
Moreover, they might like change and won’t stick around long. Someone who’s been at the same company for a more extended period shows maturity and stability, both in themselves and probably, their bank account. So, I ask for four years of employment history. In addition to employment, I want to know where they’ve lived during those four years. Looking at a tenant’s rental history is also another good indication that they’re willing to stay in one spot. That information, along with the prior landlord’s contact info, is essential. References from previous landlords, former employees or bosses, and current friends are helpful to get a 360 view of an applicant. They can give you the inside scoop on a prospective tenant and share their experiences of this person.
A background check is one of the final steps to take before signing on a new renter. It may sound scary for you as well as a prospective tenant, but it shouldn’t be. A background check mainly confirms a person’s identity. It is a way to screen tenants and identify any red flags about their financial background. Usually, there’s a fee involved for you to run a background check and for the prospective tenant, so only serious tenants will be willing to take this extra step. Furthermore, if you tell them from the get-go that you’re doing a background check, they will most likely be honest and forthcoming on their financial, employment, and rental history.
