If you’re a landlord operating a rental property, it’s no surprise you want tenants who will pay rent on time and create the least problems for you. This makes it vital to know how to screen tenants effectively beforehand. It’s much simpler to prevent head-on issues than dealing with them once they’ve moved in.
In this blog, we’ll walk you through six steps to screen reliable tenants like a pro so you don’t have to deal with problems down the line. Let’s begin!
How to Screen Tenants: Six Pro Tips
According to the FBI, there has been a 64% increase in rental property scams over the past three years. Being a landlord, rental fraud is the last thing you want to go through.
So, here are the general steps to follow when deciding on tenants for your property:
- Set Applicant Requirements Beforehand
How can you know whether a tenant is the right fit? By setting the reasonable applicant requirements beforehand, including median household income, credit score, and employment history.
Tailor your requirements based on your priorities. Are you looking for a reliable cash flow? Or a stronger credit? However, it’s worth noting that setting too high a criterion might leave your property vacant for long.
- Request for Complete Information Through Rental Ads
A well-established rental application should give you maximum information about the potential tenants. When launching an ad, make sure it requests everything from job stability and references to information about pets or roommates. This upfront transparency saves you time by cutting out applications of candidates who don’t qualify.
- Run Detailed Credit & Background Checks
In the US, credit scores lie between 300 and 850 and help you gauge the financial responsibility of a potential tenant. The higher the scores, the better. But if you see lower scores with a history of late payments, you might want to reconsider the application.
Similarly, background checks reveal criminal records, legal actions, or unpaid debts. It’s equally important to check rental history reports to know whether the tenant fulfills rental obligations timely.
Note: You must follow the federal and state laws while running these checks to avoid violating tenant rights.
- Verify the References Provided
Today, it’s entirely possible for tenants with an internet connection to create their false credit reports. So, how to screen tenants for fraud? Well, the best way to do so is to verify his employment and rental references. There’s always a chance automated screening might have missed important details, so reconfirming is always an option.
- Review all Applicants
If there’s a strong demand for your property, chances are more than one tenant gets through the landlord-tenant screening checklist successfully. The key is to stick to your requirements to keep things fair and objective. Avoid making biased decisions based on appearances or lifestyles. If all applicants weigh down equally, employ a “first come, first served” approach.
- Speak to the Tenant
Lastly, and most importantly, speaking to the tenants personally is crucial. This saves you from dealing with tenant complaints later on. Plus, this helps you clear up any confusion or address remaining concerns. If something feels off, it might actually be. So, use this as an opportunity to finalize your decision.
Final Thoughts
Now that you know how to screen tenants smartly, you can follow the steps to select reliable tenants who take care of your property. It won’t just minimize risks but also help you build a positive relationship with the tenants!
Don’t want to deal with the stress of managing your rental property? Contact the Home Team today, and let us handle it for you!
