One of the questions we get asked by owners, is “how will you find the right tenants?” Finding good tenants is one of the most important aspects of renting a property. If the property management company has the right tenant screening practices in place, then the chances are you will find people who will pay the rent on time and take proper care of your rental. The more reliable applicants found, the easier it will be to minimize vacant periods and ensure long-term success.
The issue with tenant screening is that it’s only effective if it’s done thoroughly. Most reputable property management companies have the necessary experience and resources available. At a minimum, here are five key screening tasks:
1. Pre-Qualify Potential Tenants by Informing them of the Screening Process
Simply informing potential tenants about the screening process, and what they will be judged on, will narrow down the list of interested parties without any further action. This could include credit score and household income expectations, or desired lease terms. If the potential tenant knows they won’t meet these expectations, then to save time and money they’ll likely walk away.
2. Fill Out an application
If a prequalified prospective tenant has been shown the property and is interested in moving forward the next step should be to fill out an application form. This helps gather any information that may determine whether the tenant will be a good fit. This information may include:
Personal details: name, current address
Household details: number of people/pets intending to live in the home
Contact information: phone, email, emergency contact
Income and employment information: job title, employer information, monthly household income
Rental history: previous rental addresses, reason for moving, landlord contact information
Disclosure and written permission: allowing a credit and background check to be run
The application form should also state that providing false information could be grounds for termination of the application.
3. Run a Credit and Background Check
Once permission is given, it’s time to pull an applicant’s credit report. On top of disclosing the applicant’s credit score, these reports give insight into their financial habits. This is an easy way to find out whether the prospective tenant has a high amount of debt or if they pay bills on time.
A background check gives information about the applicant’s criminal history. It includes a history of previous evictions, their criminal records, and any other legal issues.
4. Verify Income and Employment
Once it’s clear that the prospective tenant has meet all the requirements, information submitted on the application should be verified. Contact previous landlords and employers to confirm the information is accurate.
In the event information obtained does not match what was submitted then this should be cause for concern. In this instance terminating the application should be considered.
5. Interview the Potential Tenant
The final step of tenant screening is to interview the applicant further. This gives the property manager a chance to discuss any information on their application form, or simply find out more about them. The interview can be in person, over the phone, or via Zoom – it’s important to make sure it’s thorough.
If you would like to find out more about Opal Estate Management’s detailed screening process, please contact us.
