You might look at a rental property business and think to yourself that tenants come and go, and you make money as a result. But the truth is, it is not as simple as you’d expect, especially if your property is located in the heart of a city.
There are many factors that you need to address in a rental property business, with a significant one being tenant screening. This process tends to be rather comprehensive. And if you own multiple such properties, you will likely require the help, which you could do with the help of A Street Partners or similar property management companies.
However, if you decide to take on this challenge on your own, you’d want to know how to avoid mistakes in the process. With this in mind, here are some tips that can help you make sure you maximize the chance of finding successful tenants!
Use a Rental Application
When you are looking for a new tenant, it is important to screen them carefully. A rental application can help you avoid common mistakes, such as not checking references or not verifying income. Take the time to review the rental application. This way, you can make sure that you are getting a quality tenant who will pay their rent on time and take care of your property.
Verify Employment and Income
A key part of the tenant screening process is verifying employment and income. This helps landlords avoid common mistakes, such as renting to tenants who cannot afford the rent or who are likely to default on their lease. There are a few different ways to verify employment and income. One is to request pay stubs or W-2 forms from the tenant. Another is to call the tenant’s employer to confirm their employment and salary.
Of course, not all tenants will have perfect employment and income histories. However, by verifying employment and income, landlords can get a good sense of a tenant’s ability to pay rent and their likelihood of defaulting on their lease agreement.
Pull a Credit Report
There are many mistakes that landlords can make when screening their tenants, but one of the most common is failing to pull a credit report. This can lead to approving a tenant who has poor credit and maybe a high risk for defaulting on rent or causing other damage to the property. When you are screening potential tenants, you will want to pull a credit report. This will help you to avoid common mistakes that can end up costing you money.
There are a few things to keep in mind when you are looking at a credit report. First, you will want to make sure that the report is for the correct person. Next, you will want to look at the report carefully to make sure that there is nothing on it that would cause you to deny the applicant. By running a credit check, landlords can avoid these tenants and choose ones that are more likely to be responsible and pay their rent on time.
Check References
As a landlord, you know that the tenant screening process is important to find a good tenant for your rental property. However, you may not know that one of the most important parts of the screening process is checking references. There are a few common mistakes that landlords make when checking references. First, they may not check references at all. Second, they may only check the references of the primary applicant. Third, they may not verify the information that the references provided. By taking the time to check references, you can avoid these common mistakes and find a good tenant for your rental property. Checking references can help you verify the information that the applicant has provided. You can ensure that the applicant is who they say they are, and determine whether the applicant is likely to be a good tenant.
Check Eviction History
The tenant screening process is crucial for landlords to ensure the selection of suitable tenants for their properties. By checking the eviction history of potential tenants, they can mitigate risks and make informed decisions. Reviewing the eviction history allows them to avoid common mistakes that may arise from renting to individuals who have faced eviction in the past. Landlords often take the help of property management firms in this process as they can assign professionals (such as these Los Angeles Property Managers), who can verify a tenant’s ability to pay rent on time and their willingness to abide by the rules and regulations. This screening step provides valuable insights into a tenant’s rental behavior, financial responsibility, and adherence to lease agreements.
Interview Applicants
Many times, applicants can be dishonest in their rental applications or may not meet the financial criteria set forth by the landlord. By conducting a personal interview with each applicant, landlords can get a better sense of who they are as a person and whether they would be a good fit for the rental property. By taking the time to interview applicants, landlords can avoid many common mistakes and rent to a tenant who may not be the best fit for the property.
Take Your Time
As a landlord, it is important to take your time when screening tenants. This process is crucial in ensuring you find a tenant that is responsible and will take care of your property. One common mistake that landlords make when screening tenants is rushed decision-making. Take your time in deciding who you want to rent to. Once you have a tenant, you are stuck with them for a while, so you want to be sure you make the right choice.
By following these tips, you can avoid common mistakes made when screening tenants. Taking your time in this process is essential in finding a great tenant for your property.