The challenge is on: Finding a quality tenant who will pay the rent on time and take care of your property. While some view this process as a race to the finish line, that may not be the wisest approach. Sure, you want to secure a renter in a timely fashion to keep your rental property profitable. But a poor tenant choice can hit you with unpaid rent, damage to your property, a short-term arrangement that leaves you at square one again too soon, or ALL the above.
So, let’s examine a strategy that will help you determine the ideal tenant for your property.
1. First things first—determine eligibility criteria
Before the telephone calls or emails pour in, create a list of eligibility requirements. When applied consistently to all applicants, this process will save time by thinning the applicant pool immediately, and it will protect you in the event of a discrimination claim. The requirements may include such basics as an official form of identification, a verifiable income level, a credit score threshold, and other considerations – like no past evictions.
2. Use prescreening questions
Rather than immediately make an appointment with each person who contacts you, verify each applicant’s eligibility based on your already-established criteria, via prescreening questions. During the telephone call or email exchange, determine if this applicant can pass this first round of requirements before arranging an in-person meeting and property viewing.
3. Tune all senses to full alert
Listen and read thoroughly, looking for clues that the applicant is mature, trustworthy, reliable, sincere, and genuinely interested in this housing opportunity. Consider what is being communicated as well as what is not being disclosed.
4. Meet the applicant, show the property, distribute applications
While an open house arrangement may take less time than individual appointments, either scenario can work if you’re engaged. Jot notes for reference later in the decision–making process. Distribute and, if possible, collect housing applications. Set a firm, short return deadline for app submissions that cannot be completed on–site.
5. Verify application information and perform background checks
Now, it is time to confirm the info on the application and conduct various “checks.” Create a tenant screening report to check an applicant’s rental history, employment history, criminal background, and run a credit check. These “checks” should be considered a crucial part of a landlord’s tenant strategy.
6. Keep in mind the questions you cannot ask
While the applicant may volunteer information about their age, race, gender, religion, or family status, property owners cannot use these characteristics to refuse to rent a property to an otherwise qualified tenant. It’s also very important to be consistent and use the same requirements for anyone that applies. Become familiar with the Federal Fair Housing Act to ensure you’re in full compliance and not unknowingly discriminating.
At Rentals America, we strive to meet the needs of landlords and real estate investors with full-service property management for residential properties. Our team is wholly dedicated to property management. You will work with a dedicated property manager that knows you, your property, and your residents. They will handle all day-to-day management of your property, and they are available to provide expert guidance when needed. Contact us today.
