As a landlord or property manager, finding the right tenant is crucial to the success and profitability of your rental property. Screening potential tenants thoroughly can help you make an informed decision and choose individuals who are reliable and responsible. In this article, we will discuss the essential steps involved in checking a prospective tenant in order to protect your property and minimize risks.
1. Establish screening criteria
Before you start screening tenants, it is important to establish clear criteria that applicants must meet. Consider factors such as income, rental history, credit score, employment stability, and any specific requirements you may have for your property.
2. Create a rental application
Develop a comprehensive rental application that includes all the necessary information for tenant screening. This should include personal details, employment history, references, and consent to background and credit checks.
3. **Perform a background check**
One of the most crucial steps in screening a prospective tenant is conducting a thorough background check. This involves verifying their identity, criminal records, and eviction history. You can hire a professional service or use online resources that provide these checks.
4. **Check their credit history**
Assessing a tenant’s credit history helps determine their financial responsibility. Look for patterns of late payments, outstanding debt, and any prior evictions. Obtain their written consent before accessing their credit report.
5. **Contact previous landlords**
Speaking with previous landlords can provide valuable insights into a tenant’s rental history. Ask about their payment habits, behavior, any issues, and whether they would consider renting to the applicant again.
6. **Verify employment and income**
Confirming a prospective tenant’s employment and income is crucial to ensure they can afford the rent. Request recent pay stubs or employment verification letters to verify their financial stability.
7. Conduct an interview
Inviting applicants for an interview allows you to assess their compatibility, professionalism, and communication skills. This step also provides an opportunity to discuss any concerns or questions you may have.
8. **Contact personal references**
Contact the personal references provided by the applicant to gain a better understanding of their character and reliability. Ask questions related to their ability to meet financial commitments and their general behavior.
9. Research online presence
Perform a quick search online to see if there is any publicly available information on the prospective tenant. Social media profiles can sometimes reveal behavior, interests, or red flags that may not be evident during the screening process.
10. **Consider using a tenant screening service**
If managing the screening process yourself feels overwhelming, consider using a professional tenant screening service. These services specialize in verifying an applicant’s background, credit, and rental history, providing you with reliable results.
Frequently Asked Questions:
1. Can I reject a tenant based on their criminal record?
Yes, as a landlord, you have the right to reject a tenant based on their criminal record if you believe it may pose a risk to your property or other tenants.
2. Is it legal to discriminate against a tenant based on their race or ethnicity?
No, it is illegal to discriminate against a tenant based on their race, ethnicity, color, religion, sex, national origin, disability, or familial status under the Fair Housing Act.
3. What should I do if a tenant refuses a background or credit check?
If a prospective tenant refuses to consent to a background or credit check, it is generally a red flag. Consider this as a valid reason to reject their application.
4. Can I charge an application fee for tenant screening?
Yes, you can charge an application fee to cover the costs associated with tenant screening. However, ensure the fee is reasonable and comply with any local regulations.
5. How long does a background check typically take?
The duration of a background check can vary depending on the service, but it usually takes a few days to a week to receive the results.
6. Can I reject a tenant based on their low credit score?
Yes, as a landlord, you are allowed to reject a tenant based on their low credit score if you believe it may indicate their inability to meet financial obligations.
7. What should I do if a tenant provides false information on their application?
If you discover that a tenant has provided false information on their application, it is generally a valid reason to reject their application.
8. Can I ask for additional security deposit from a tenant with bad credit?
As a landlord, you have the right to request a higher security deposit from a tenant with bad credit to mitigate any potential risk.
9. Should I conduct tenant screening for every applicant?
It is a good practice to conduct tenant screening for every applicant consistently. Treating all applicants equally helps minimize the risk of potential discrimination claims.
10. Can I reject a tenant based on their age?
No, it is illegal to reject a tenant based on their age, as age discrimination is prohibited by the Fair Housing Act.
11. What should I do with the applicant’s personal information after screening?
You must handle and dispose of the applicant’s personal information responsibly and in compliance with data protection laws. Store the information securely and destroy it when no longer needed.
12. Can I ask for a co-signer if the tenant does not meet my screening criteria?
Yes, you can ask for a co-signer if a prospective tenant does not meet your screening criteria. A co-signer provides an additional layer of financial security for the lease agreement.