You can make a solid income from rental properties, but things may not always go as smoothly as you'd like. Of all the challenges that landlords face, finding the best tenants is one of the most significant.
Choosing tenants can be very difficult, especially if you don't really know what you're doing. If you want everything to play out as it should, proper tenant screening is essential. It will help you find the best, most responsible tenants so that your life as a landlord will be much easier.
Let's take a look at the tenant screening process so you know what you should be doing.
Set Minimum Applicant Requirements
When creating a property listing, you want to set out the minimum criteria for any prospective tenants. This can include things like minimum income, employment history, and credit score. This is a good way to ensure you get reliable tenants who won't have any issues affording their rent.
Be careful not to set these requirements too high. This could limit the number of applicants you get, so you won't have as many people to consider.
It's worth doing some market research to compare your properties to others in the area. This will help you set suitable requirements that you're happy with.
Request a Completed Rental Application
Written rental applications are ideal for gathering information on potential tenants. A rental application should include details such as:
- Current and previous employers
- Gross income
- Monthly debt payments
- Personal references
- Contact details of former landlords
- Information about pets and roommates
Run a Credit, Rental History, and Background Check
This is one of the most crucial parts of tenant screening. Checking someone's credit score will show how financially responsible they are, and their rental history will show if they've had any issues with paying rent on time in the past.
A background check will provide information on any criminal history or if they're currently being sued for anything. This is something that you'll want to hire a professional property manager for to ensure it's done thoroughly.
Speak With Their Current Employer and Landlord
Beyond tenant screening, you should speak to an applicant's current employer and landlord. This is one of the best ways to get a good idea of what to expect from them in terms of reliability. They may also be able to make you aware of any issues that you'll need to take into account.
Interview the Applicant
Once you're happy with the above, you can interview a candidate either over the phone or face-to-face. Take this opportunity to verify the information in their application, and discuss any discrepancies (if there are any). This will also give the applicant a chance to ask any questions they might have.
Review All Applicants
You can now review all of the applicants you've considered. Narrow them down to your top choice, and let them know that you've accepted them.
Professional Tenant Screening
Tenant screening isn't a simple process, so you may find it difficult to do it on your own, especially without experience. PMI Savannah Metro is a full-service real estate management company that offers professional tenant screening as well as various other property services.
Get in touch with our team today to find out more about the services we provide.
