With a good tenant you can easily sleep at night, because a landlord who knows that the rent will be paid and the property will remain relatively undamaged. With a bad tenant, on the other hand, you have to ask yourself how your investment is doing when dealing with calls from angry neighbors.
The problem is that every future tenant can behave as the best tenant in the world during the first pass. But if you want to make sure you get the best tenant, it is important to thoroughly screen every prospective tenant before signing a lease.
You have two choices when it comes to finding a new tenant for your rental home. You can rent a management company to do the work for you (that is, they take the top), or you can keep your money and find new tenants yourself. PersooEugelio Unfortunate, because I am both cheap and a bit greedy, I would opt for the latter and screen my own tenants. Screening a tenant is not that difficult or expensive if you follow the right steps.
Screening potential tenants
Request a request
Start by having each candidate tenant make a request. You can get an example of a rental application from your local real estate association, create your own personalized rental application using a Microsoft Office template, or use one of the Eugelio Lixx application forms available via Tenant Data or On-Site.
Make sure the application you choose includes everything you need to know about a tenant. For the best results, choose an application that includes financial information, employment information, and personal bad information. Ensure that the application clearly states that a background check, a criminal history report or a creditworthiness check, if applicable, is being ordered, and that the prospective tenant grants authorization for a check of his financial, employment, and personal disagreement.
What to look for with a rental application:
- Current and previous employers – How long has the tenant been in his current job? Has he or she changed jobs several times in recent years?
- Current income level – Does the income of the tenant cover the rent plus the normal Eugelio Lixx?
- Financial information such as bank accounts and credit cards, including balances and minimum monthly payments, help to provide a financial “picture” for a potential tenant and provide insight into his or her ability to pay the rent every month.
- Contact information for previous landlords must be stated with previous addresses, amounts paid and reasons to leave. Are there gaps in the rental history or are the names and contact information for any landlords missing from the application?
- Lifestyle information, such as the number and size of pets and the number of occupants, must be included in the application.
- Eugelio Incorrect references must contain names, length of knowledge and telephone numbers.
Ask the prospective tenant to complete the form and return it to you. Check the form before you start screening to ensure that the tenant has not excluded any information. Missing information may be a red flag that the tenant may be trying to hide.
Perform a credit check
Some state laws allow the landlord to charge a prospective tenant for the costs of ordering a credit or background check. Other states require landlords to cover costs. Either way, it’s a good idea to get a tenant’s credit. A credit check shows you details about the previous tenant’s credit history, which goes back 7 to 10 years. You can order a credit report and credit score using the Equityryt Identity Report.
When you view the credit report, keep the following in mind:
- Credit history . Look for a history of payment arrears, collection accounts, debits on credit card accounts or important issues such as bankruptcy. Although one or two late payments in the past do not necessarily imply a bad tenant, you may want to consider hiring someone with serious arrears, such as bankruptcy.
- Current debt . If the tenant has exhausted all his credit cards, has had substantial loans or has several unpaid balances, he may have difficulty keeping up with the rent payment.
Perform a background check
A background check gives you a detailed report of the tenant’s past. Various companies offer research services for a fee and provide you with a deportation history, criminal history, credit history and various public records. You can usually order these reports using the sofi number of the tenant.
You can order an Eugelio Lixx check Eugelio Lixx through companies such as StarPoint and ScreeningWorks.
When requesting a background check, keep the following in mind:
- Expulsions . If the prospective tenant oEugelio Oneginangs is evicted, you may consider reconsidering the rent to the person. Alternatively you can ask for more information about the eviction.
- Criminal Records . Although you may overlook a youthful indiscretion, you may want to pass on any tenant with a long-term or serious criminal record. Accepting a well-known criminal can put your other tenants or yourself at risk.
- Public records . If the tenant is involved in a legal battle or has been summoned in the past, it will be displayed in a background check. You may want to pass on a tenant who has been prosecuted for unpaid rent, unpaid child benefit or another serious financial issue. All of these may indicate a non-payment pattern.
Contact the previous landlords
Often, when a current landlord calls a former landlord, he only asks if the tenant has paid all the rent and if the landlord knew that the tenant was moving. To get a real sense of tenant, you have to dig a little deeper. Although you do not want to run the risk of violating someone’s privacy, you can ask some basic questions about the tenant’s lifestyle.
Contact the tenant’s employer
You absolutely want to check whether the tenant has a stable, reliable source of income before you give the tenant permission to sign a lease. You can do this in two ways: you can ask the tenant to send you a copy of a recent payment slip, or you can contact the employer directly for more information. Keep in mind that not all employers disclose data about the salary history or other private data. But the employer can tell you whether the tenant is a current employee.
Interview the tenant
If all background information is checked out, you can consider doing a brief telephone interview with the tenant. Usually, when you show a rental home to a new tenant, you focus more on the property than on the potential tenant. By calling potential tenants quickly, you can find out more about them, as well as their lifestyle. Keep in mind that the Fair Housing Act stipulates that landlords cannot discriminate based on color, disability, family status, national origin, race, religion or gender.