The Best Tenant-Screening Tips

Throughout your life, there are several times where your gut instinct is an effective barometer on which to gauge or weigh your choices. However, when it comes to screening prospective tenants, this may not be the best way to select someone who will care for your rental property as if it were their own.

Application

Meeting with a potential tenant in person can help you to assess whether or not the applicant is the right fit for you and your rental property. You may think that you have a Grade-A radar when it comes to evaluating people, but there may be a better way than just going with your gut instincts. A rental application gives you the opportunity to obtain a variety of information that can assist in your decision making.

You can find a number of rental application forms at your local office supply store, as well as online. However, you may have questions for the tenant that may not appear on the list. This is where having a supplemental list of questions can help to fill in any gaps that may not be addressed on a standard application. Some questions you may want to ask include:

• Do you smoke?
• Do you have any pets?
• How many people/vehicles will be at the premises?

In Colorado and other states where the laws on legal and recreational marijuana have changed, you may want to include a question regarding the use of marijuana. You may also want to stipulate your stance on tobacco and marijuana smoking in your rental property in order to cover all of your bases, as your tenant may not smoke tobacco products, leading them to indicate that they do not smoke, only to realize later that you had meant to include all smoking. However, make sure that your questions are in line with the laws of your state, which can vary in regards to what types of questions you are legally able to ask. You will want to avoid questions that pertain to race, religion, and familial status.

Background and Credit Checks

Just like companies who provide a line of credit for their customers, looking at the background of a potential tenant can help you to weed out people who may not be able to make their payments on time. Running a credit history can help to provide you with a more thorough assessment by looking at how much debt, number of missed or late payments, and the presence of a bankruptcy on the record of someone who you could enter into a tenant-landlord relationship.

Talk to Those Who Know

We’ve all been there. Slick talk can hide a myriad of issues, and when it comes to potential tenants, this tactic can also be used and it is sometimes difficult to identify. In order to reduce the risk of being bamboozled by a tenant, only to find out later that you should have gone with a different tenant, due diligence can be your best friend. One way to find out more about what kind of person you are considering as a tenant for your rental property is through talking to those who know the individual. Calling the employer listed on the applicant’s rental application can do more than just confirm whether or not the tenant is employed. A simple call can help to fill in any gaps that may not be identified on a traditional application. For instance, you can find out what type of employee he or she is, whether they show up to work on time, are more likely to have blowout parties, and even if they are able to complete work-related tasks on time.

Checking with previous landlords can also help to provide a more thorough picture of the types of behaviors that you may be expecting when renting to an individual, including the number of times the rent was late in the past, any complaints the landlord may have about your potential tenant, and if there were any damages to their property when the tenant vacated the premises. You may feel as if you are intruding on the privacy of your potential tenant, but when it comes to your rental property, the feedback you receive from the employer and/or previous landlords can help you to determine if the applicant is right for you and your property.

Conclusion

Selecting a tenant for your rental property can be an arduous task, but if you take the time to screen your applicants, you will save a number of headaches in the future. However, if this process seems to be a little overwhelming, consulting a property management company can make the process much smoother than if you undertake it yourself.

References

BiggerPockets. (2018, November 21). 7 Advanced Tenant Screening Tips (So You’re Not Fooled by Wolves in Sheep’s Clothing). Retrieved from https://www.biggerpockets.com/renewsblog/advanced-tenant-screening-dont-be-fleeced-by-wolves-in-sheep-clothing/

Eberlin, E. (2018, October 23). 8 Essential Resources for Screening Potential Tenants. Retrieved from https://www.thebalancesmb.com/the-complete-guide-to-tenant-screening-2125054

Money Crashers. (2018, May 7). How to Screen Potential Tenants – Questions, Credit & Background Check. Retrieved from https://www.moneycrashers.com/screening-potential-tenants-questions-credit-background-check/

Rent Prep. (n.d.). Tenant Screening Criteria Template | Landlord’s Guide to Tenant Screening. Retrieved from https://www.rentprep.com/tenant-screening/tenant-screening-criteria/