Do you need to know how to conduct a proper tenant screening check?
As a landlord, it’s your job to find the right tenant. You must check the applicant’s credit history and make sure they have the means to pay for the rent. Also, you need to run a background check to see if the applicant has a criminal record.
Sounds easy for someone with years of landlord experience, right? It’s not as easy as you may think. To help you out, we created this helpful tenant screening checklist.
For a better idea of how to screen your tenants, keep reading.
Checking Credit History
The applicant’s credit history will give you an understanding of their financial responsibility. Look for late payments, bankruptcies, or a low credit score.
These red flags might suggest that the prospective tenant struggles with handling money. If they have trouble paying their bills, they may struggle to pay rent.
Incorporating a landlord report to credit bureau can ensure that your tenants will make timely payments. But remember that a low credit score doesn’t always mean they’re a bad tenant.
Always get the applicant’s written permission before running a credit check. Failure to get this permission can result in serious legal repercussions.
Verifying Income
It would be best to ensure your potential tenant has a steady income. This is crucial to ensure they can afford the monthly rent.
Ask for pay stubs, tax returns, or bank statements as proof of income. The general rule is that their monthly income should be at least three times the rent. This ensures they have enough money for other expenses.
Running Background Checks
Background checks are another essential part of the screening process. These checks provide insight into the applicant’s past behavior. They include criminal records, eviction history, and past rental history.
An applicant with a criminal record might not be a bad tenant. Look at the nature of the crime and how long ago it happened. Always follow the Fair Housing Act and don’t discriminate.
Contacting References
References can provide valuable information about the tenant. They can be previous landlords, employers, or people who know them well. Contacting references is a great way to get a more complete picture of the applicant.
Ask former landlords about the applicant’s payment history, behavior, and reason for leaving. If they were a good tenant, the landlord would likely recommend them.
Employers can verify the tenant’s income and job stability. Friends or family members can provide insights into the tenant’s lifestyle and habits.
Meeting the Applicant
Lastly, meet with the applicant in person. This can give you a feel for their character. This is also a chance to discuss any concerns you have.
During this meeting, ask about their lifestyle, their intended length of stay, and their reasons for moving. Their answers can give you a better understanding whether they’re a good fit for your property.
Remember, your gut feeling can be a good judge of character. It might be worth considering other applicants if something doesn’t feel right. But make sure your decisions are always based on facts and not discriminatory.
Incorporate This Tenant Screening Checklist Into Your Renting Process Now
A comprehensive tenant screening checklist is key for landlords. It helps find responsible tenants. Landlords can make informed decisions and protect their property by following this checklist.
A good tenant can make your job as a landlord easier. Stick to the facts and stay fair. Happy renting!
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