Tenant Screening Tips and Tricks
Have potential tenant complete and sign a standard rental
application to provide personal and employment
information and authorize the landlord to obtain a credit report and background checks.
Obtain the applicant credit report through a Credit Reporting and Tenant Screening Agency
Do a thorough background
check. Do call prior landlords. They are your best, most honest source
for information regarding on your prospective tenant. Present
landlords, wanting to get rid of bad tenants may not be most objective
source for you.
- Don't rush. The credit and background checks take only a few hours to complete.
- Pay
special attention to Fair Housing Laws. Many prospective tenants do
know the law. The internet is a wonderful source for both tenants and
landlords. Know what you can say and be careful to stay within those
guidelines
- Never
discriminate based on race, color, national origin, religion, gender,
family status or handicap or source of a person's income.
- Check with
your state and local laws to make sure you are complying with all
regulations.
- Tenant Associations and local rent boards are good
sources for compliance questions. If dont have the time, you may want to look to professional
property management.
You may and should consider the following when setting your criteria:
- Set a minimum income requirement as a multiple of the rent. We are comfortable with 3X the gross income as a qualifier
- Credit Rating: Consider a minimum score, a minimum of late pays, income to rent ratios
- Length of time at job. Many managers consider six months a minimum.
- Prior tenancy information, especially a talk with the prior landlord
- Maximum number of allowable occupants. State Law may differ from Federal law. Know what is permissible in your area.
- Eviction filings: A red flag
- Bankruptcy filings: Consider a time frame, perhaps a bankruptcy three or more years ago with good income and good payment record is reasonable.
Questions you can ask
- Earnings: Get two recent pay stubs and file with the application.
- Self employed: Ask for the most recent IRS 1040 and bank statements to
corroborate earnings.
- Are there any areas that need clarification? Check the present address.
- How is
their overall credit rating? Establish a minimum score and stick to it.
Remain objective for all applicants.
- Have the Police ever been called?
- Credit report?
Establish if any prior collections or judgments are OK and determine
how long ago before you will consider them for your unit. Recent
problems are a red flag.
- What
did the previous landlord say about the applicant? This is your best
source for a character reference regarding how they lived among their
neighbors and how they left the unit.Do
they have any judgments or collection items on their c
Questions you can ask Prior Landlords
- Confirm that the prospective tenant did live at that address and confirm the dates.
- Ask if the owner/manager knows why they left.
- Ask whether they gave 30 day proper notice of intent to leave.
- Was the security deposit returned in full?
- Where any 3 day or 30 day notices ever posted during the tenancy
- Where the Police ever called due to complaints
- Would you rent to the tenants again?
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