Finding a good tenant involves a meticulous screening process. It starts with detailed applications, background, credit checks, and interviews to assess suitability. This thorough process helps landlords mitigate risks, ensure a positive rental experience, and safeguard their investment.
Comprehensive Steps for Effective Tenant Screening
Review Fair Housing Laws
Before you start, familiarize yourself with The Fair Housing Act. This federal law prohibits housing and tenant screening discrimination based on various protected characteristics such as race, color, national origin, religion, sex, familial status, or disability. You cannot use any of these factors to deny someone rental accommodation. Questions related to these characteristics are also prohibited during the tenant screening process.
Qualities of Great Tenants
Keep this list of characteristics of great tenants handy throughout the process, as it can help guide you to the perfect fit.
- Positive, respectful attitude
- Consistent job history
- Ability to afford the property
- Reliable references
- Responsible
- No criminal history
Set Minimum Requirements for Tenants
Generate a list of standards you share with the tenant before moving on. Place these minimum requirements on the rental application, in all marketing, and share them verbally to eliminate those who will not qualify. These should include:
- Income that is three times the monthly rent
- Good references
- No previous evictions
- No criminal history.
Prescreen Prospective Tenants
Screening your prospective tenants can take quite a bit of time, so prescreening is essential. Follow these steps to narrow down your pool of applicants.
- Request a completed application that reflects your minimum requirements and basic information, such as their social security number, date of birth, employer details, and rental history.
- Use advertising to prescreen by listing the location and cost of the rental.
- Use a phone call to prescreen your potential tenant further. Ask open-ended questions to determine the tenant’s character and reliability.
- Look at social media accounts to help you make an informed decision about the character of your prospective tenant.
Meet Potential Tenants in Person
Meet with potential tenants and show them the property. This is an excellent chance to assess the tenant’s suitability before proceeding with additional paperwork. Reiterate your minimum criteria to the tenant during this face-to-face interaction, as it’s a prudent practice that helps mitigate misunderstandings in the future.
Run a Background and Credit Check
If your prospective tenant has checked all the boxes, it is time to run a background and credit check. A background check examines the tenant’s criminal records, eviction history, and fraud or deception. A credit check looks at the tenant’s ability to pay their bills and make loan repayments responsibly.
Call References
Finally, request references from your prospective tenant’s previous landlords and employer. You can also request personal references if necessary.
Tenant screening is a time-consuming process, but if you care about maximizing your investment, it’s worth it. By taking the time to screen tenants, you can avoid potential problems down the road, which will save you time and money in the long run.
Contact Steady Real Estate for Expert Guidance
Are you ready to take your property management to the next level? Steady Real Estate is here to help you navigate the intricacies of effective property management and maximize your rental income. Our team of experts is dedicated to ensuring your success in the real estate market.
Unlock the full potential of your rental property and secure a steady income stream. Contact us today for personalized guidance tailored to your property management needs.