As a landlord, you have to protect your property. Tenants can cause damage and leave you with the logistics of fixing things, which can put a serious dent in your finances. You need to take steps to make sure the tenants you pick will treat your property with respect. These tenant screening tips will go a long way toward protecting your investment.
Have a document that states the tenant’s qualifications
To make sure you can weed out the people who don’t meet your standards, clearly state what those are. In your ad, you can include things like “no pets” or “must have good credit.” But for more important details that’ll affect the whole application process, such as income requirements, credit score requirements, and business-type restrictions.
You can use this list of landlord-tenant laws to ensure you’re not discriminating unfairly against anyone. For example, it’s illegal to discriminate against anyone based on race, color, religion, sex, or national origin. If you’re screening potential tenants based on any of those factors, you could be violating the law. The qualifications should be included in your rental application as well as your lease agreement.
Verify the source of income
Knowing your prospective tenants’ source of income is of utmost importance. How else would you assess if a tenant will be able to pay the rent?
If someone says he is employed by Company XYZ, how would you know how much he earns? If you know how much he earns, you can then check if the amount he earns is sufficient for him to afford the rental property.
A simple background check would reveal an employment history and help you verify where a person worked in the past. If you want to go beyond that and verify if someone really works for a company or if he earns what he claims to earn, you should ask for proof of income and related documents.
There are many ways through which a prospective tenant can produce proof of income.
• Pay Stubs
• Income Tax Returns
• Offer Letter / Employment Contract
Check the applicant’s social media profile
When you are going through an applicant’s information, you need to make sure that you check their social media profile as well.
Why is it important to check the applicant’s social media profile?
It is important for landlords to check the applicant’s social media profile because it gives you a glimpse into their personal life. This is the place where people tend to share personal information about themselves, their families, and friends.
A landlord will want to know if there are any issues with their potential tenants before letting them move into their property. If they find out later on that they have a criminal record or are not financially stable enough to pay rent every month, then this could cause problems later down the line.
How can you check the applicant’s social media profile?
You can get some of your friends and relatives who use the same network as the applicant to find out more about the applicant’s background check. You can also search for criminal records through google search or other online databases.
Get in touch with the previous landlord
It’s always best to check references when you’re trying to choose a good tenant. A reference from a former landlord or employer can give you an insight into how well your applicant handles money, what kind of attitude he or she has, and whether or not they’re likely to pay their rent on time.
How can I get in touch with the previous landlord?
Reach out to them via phone, email, or text and ask them to tell you about their experiences with this tenant. If they’re the type of person who doesn’t want to talk bad about anyone, then let them know that you just want an idea of what type of renter this person is so that you can decide whether or not they are someone you want to rent your property out to.
Use a property manager
Using a property manager is one of the best ways to ensure you get great tenants. A good property manager will know how to look for red flags and won’t be afraid to turn people away. They can use their knowledge, experience, and resources to find out if the applicant is a good tenant or not. In addition, your property manager can help you set up a tenant screening process that complies with all the state and federal laws related to fair housing and discrimination.
Don’t lease without completely signed documents
Leasing without complete, signed documents is a dangerous practice because it increases your risk of liability. If you don’t have a written agreement with the tenant, you can’t legally enforce any of the terms of your lease.
You also won’t have a way to prove what the original agreement was should a dispute arise. This is why it is important to always get a signed copy of every document you provide to a tenant. This includes leases and applications as well as addendums and notices.
Naturally, landlords and property managers are always looking for ways to improve their business and their investment. This means it is becoming increasingly important to have a full understanding of the tenant screening process and the methods associated with this practice.
