It’s every landlord’s goal to have tenants who pay rent on time and take care of your rental. But to find these tenants, a proper tenant screening process is necessary. That’s where a tenant screening guide comes in handy.
Here is our step-by-step guide to help you find quality tenants for your rental property:
Before you even start looking for tenants, it’s important that you know what your goal is. You’re much more likely to recognize the right fit if you know ahead of time what kind of tenant you’re looking for.
The criteria for tenant screening needs to be fair. You have to abide by Fair Housing Laws. According to the Federal Fair Housing Act, you are within law to dismiss a tenant’s rental application based on their lifestyle, criminal history, rental history, or income.
Below are important tenant screening criteria you should keep in mind:
Your rental listing should contain a sentence that sets up expectations for interested tenants. It should be brief. This will not only be time-saving but it’ll also help you avoid troublesome tenants.
It’s an effective pre-screening technique. The phrase, for instance, could be something like, “all potential tenants are required to consent to a check on their background and credit history when submitting their application.” You can also mention the application fee they’re required to pay.
You should have a set of questions to ask your potential tenants when they call to view your rental property. This can prove to be a huge timesaver and help you to immediately filter good tenants from the bad ones.
It’s important to ask the same type of questions to all tenants who call. This way, you won’t be accused of discrimination.
Here are the kind of questions to ask your possible tenants:
This question is very important. Listen closely. Done right, it can tell you a lot about the tenant. Look for legitimate reasons for moving. For example, wanting more room or changing jobs.
Also, beware of red flags. For instance, suing a former landlord or being evicted.
This is still worth asking even though many prospective tenants are likely to lie. Asking this question will give them a chance to explain the circumstances. Good people can fall on hard times and their eviction may not be a measure of who they are financially.
This will help separate good tenants from bad ones. As such, you should include it as part of your requirements. It’s important that their consent be written down. Verbal consent isn’t legally binding.
Hesitation or excuses by the prospective tenant to provide references are red flags. References from their former landlord will help you learn important details about them. References from an employer will help you verify whether or not the prospective tenant is financially stable.
There should be a maximum of two people per bedroom. Be sure to check with your municipality and fire department. Some dictate the number of people who can stay in the rental premises.
The fewer people living in your property, the better. Overcrowding cannot only cause rapid wear and tear on your property, but can also be a health and safety hazard.
It’s best to know right away whether or not your prospective tenant adheres to your pet policy. It helps save time.
The tenant also has to be satisfied to want to live in your property. He or she may have questions about the screening process, location, or anything else that comes to mind.
A rental property showing gives you a chance to meet the tenant in person. If the showing goes well, then ask the tenant to complete their application.
Ask for important details such as how responsible the tenant is as an employee, the tenant’s position, salary and the length of time the tenant has been at the company.
After getting feedback from the tenant’s employer, ask yourself: was the tenant truthful about their salary? Can they comfortably afford the price of rent? As a guideline, the tenant should make at least 3 times the total monthly rent.
To find out about the tenant’s behavior, you need to contact their previous landlord. Find out if the tenant:
Your applicant's credit score report is also important. It allows you to get insights of the tenant’s financial history. Although you are still free to use your judgement, a credit score of 680 or higher is a good credit score.
Finally, it’s time to either accept or reject tenants based on the steps aforementioned. Before rejecting an applicant, make sure you’ve adhered to the Fair Housing Act. As per these rules, you cannot reject a tenant based on:
The tenant screening process doesn’t have to be stressful. Hopefully by using this guide you’ll have a thorough tenant screening report, making the process of screening your next tenants easier.
If you’d like help with tenant screening services for your rental, don’t hesitate to