Hitting the lessee lottery doesn't come without thorough investigation. This crucial step could mean the difference between a smooth-sailing, profitable investment or a property plagued by unpaid rents and frequent complaints.
The article below shines a light on the many intricacies of tenant screening, from conducting thorough background checks to asking the right tenant screening questions.
Don't gamble with your property's future! Read on to discover how you can mold your rental venture into a landlord's paradise.
1. Set Your Criteria
Before you start the screening process, you need to define your criteria for the ideal tenant. Consider factors like the ability to pay rent, employment stability, a clean eviction history, and a respectful attitude towards property and neighbors.
2. Pre-Screen Potential Tenants
The pre-screening process begins even before a potential tenant fills out an application. When you advertise the property, include information about the residence that'll attract renters who are a possible match.
3. The Rental Application
A detailed rental application is a powerful tool in the tenant screening process. It should request the tenant's personal information, employment details, rental history, and references. Always get the renter's consent to run a background and credit check.
4. Conduct a Credit and Criminal Check
Use a reputable tenant screening service to conduct a credit check and background check. You're looking for red flags like a history of late payments, significant debt, or a criminal past that could pose a risk to your property or other tenants.
5. Verify Employment and Income
Contact the tenant's employer to verify proof of employment. You'll want to ensure the tenant has a stable job and earns enough to afford the rent. A good rule of thumb is that the tenant's gross monthly income should be at least three times the monthly rent.
6. Check Previous Landlord References
Speaking to former landlords can give you insight into the tenant's behavior and reliability. Ask about their payment history, how they maintained the property, and if they would rent to this person again.
7. Speak With the Tenant
A personal discussion can provide a wealth of information about a possible renter. It allows you to ask questions, clarify concerns, and get a sense of the tenant's personality and lifestyle.
Always trust your instincts-if something feels off, it might be worth considering other candidates. Just make sure your decision complies with the Fair Housing Act.
8. Make Your Decision
After a thorough screening, you should have all the information you need to make the right selection. Choose the tenant that best meets your criteria and seems most like a responsible, respectful occupant.
Let Us Handle Your Tenant Screening
Tenant screening may seem challenging, but it's an essential step in finding the best renter for your property. But, if it's too tall of a task, we can handle it for you.
At PMI Henderson, we'll conduct a detailed check into each applicant to ensure that you rent to the right person. Not only that, but our team also provides all-around property management services. We'll make running a rental hassle-free.
If you'd like to learn more about us, call 702-819-0928, or request a no-cost rental analysis. We'll speak to you soon!
