No matter if you are a landlord or property manager, one of the most critical tasks you face is finding the right tenants. The ideal tenant not only ensures the safety and upkeep of your property, but also guarantees a steady stream of income, minimal headaches, and long-term satisfaction. The tenant screening process, while extremely important, can feel daunting. However, with the right approach and tools, you can make confident decisions and select tenants who will be a good fit for your rental. Here is how.
Before you begin screening tenants, it’s essential to outline clear criteria. This will help you assess applicants consistently and fairly. Typical rental criteria may include checking their credit score and analyzing whether there are any red flags in their financial responsibilities. Then, conducting a background check and seeing if they have had any past eviction records, checking their income requirements, and setting (or not) a specific pet policy. By having a clear set of criteria, you set expectations for potential tenants and streamline the screening process.
Your property needs to be visible to the right pool of tenants. Before you get all the media included, you can perhaps beforehand hire an expert real estate agency such as Calnan Property to help you do professional tenant demand calculations and call the right people before the advertising starts. If you don't find the right tenants with professional assistance, you can create a compelling and accurate listing that highlights the features of your rental, and start the marketing process. Don't forget to include information about your screening process and expectations for prospective tenants.
Once you start receiving applications, review them with a keen eye. With professionals by your side, it would be hard to receive fraudulent applications, but it is always better to be safe than sorry. Hence, when reviewing tenant applications look for their consistency and accuracy in the information they provide. Next, double-check the references because a good applicant will always have neat references from previous landlords or employees, and in the end, inspect their employment stability. Having a steady job and a verifiable source of income is utterly vital.
A credit report offers a tangible and hands-on insight into how a potential tenant handles financial obligations. Pay close attention to whether they have had frequent and inexplicable late payments, see if they have an outstanding debt that can immensely impact their ability to pay the rent on time, and of course, check bankruptcy history, if any. A past bankruptcy doesn’t automatically disqualify someone, but it’s important to see if the individual has rebuilt their credit over time. Bear in mind that a credit score is just one piece of the puzzle, and you shouldn't make a final call to have them as tenants before conducting other check-ups.
Conducting a criminal background check and inspecting their income and employment are must-do steps, but performing an in-person or virtual interview with the applicant allows you to assess their communication skills, responsibility, and reliability. During the interview opt to focus on whether they show a full understanding of the terms such as having clear knowledge of your lease terms and rent expectations. Secondly, pay attention to whether they respect your time and if they exude professionalism by coming on time and neatly responding to your questions. These things may not be a formal part of the tenant assessment, but they will help you gauge whether the tenant will be easy to work with throughout their lease.
Last but not least, although it is rather essential to keep track and rely on various data and objective factors when screening tenants, you must never underestimate the value of intuition. If something doesn’t feel right, whether it’s an applicant’s behavior, inconsistencies in their story or something generally looks or smells fishy, it's okay to walk away and continue your search in some other way. Your instincts can sometimes reveal concerns that may not be immediately apparent from the data, no matter how peachy they may look
Selecting the ideal tenants requires a thoughtful and comprehensive approach. By setting clear criteria, conducting thorough background checks, and trusting your instincts, you can find tenants who will respect your property, pay rent on time, and foster a harmonious rental experience.
