As a property manager or real estate investor, we’re sure you’ve heard it all when it comes to tenant horror stories. Attracting, screening, and selecting the ideal candidate to occupy your space are top concerns landlords face when renting out property. It is essential to make swift decisions in order to occupy the rental as soon as possible, but what’s more important is selecting a responsible and respectful tenant. Screening is a crucial step in this process and will help to ensure the success of this new relationship.
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It All Starts with a Great Listing
Take pride in your property with eye-catching photographs that highlight the features of the home while including detailed descriptors of the space. Be sure to include plenty of photos of a clean and tidy space so that viewers can imagine what it might be like to live there. Consider expanding on the tips below to really paint a picture for your future tenant and express how much you care about your property:
- Include positive descriptors such as cozy, spacious, modern, unique, and bright.
- Highlight some of your favorite features of the property. I.e., vaulted ceilings, a brick fireplace, original hardwood floors, fenced backyard.
- Talk about the neighborhood or surrounding area, i.e., proximity to parks or schools, walking distance from the Farmer’s Market, quiet and charming, or vibrant and exciting
In addition to describing the property, it is essential to include the rental criteria and tenants’ expectations upfront. This will promote interest in more qualified tenants who meet the standards. Establish things like:
- Are pets allowed? If so, what is the deposit?
- Do you have a smoking policy?
- Are utilities or any lawn care included?
- How much is the security deposit, and what is expected upfront before moving in?
- Are there any security amenities, such as access card systems that don’t require tenants to fumble through their bags for keys?
Get to know Tenant at Property Showing
If you have the opportunity to show the house in person, this is a great opportunity to meet and get a feel for your prospective tenants. This is the perfect time to ask questions and get to know the individual and if they might be a good match for the property. Did they show up on time, did they ask questions and seem genuinely interested in the property, and does their lifestyle jive with the property expectations and criteria? All of these questions can be answered in a face-to-face or virtual meet and greet, depending on how you decide to show the property.
Learn what to Look for in a Rental Application
Flipping through tenant applications can be time-consuming, but you want to be sure you are looking for crucial make-or-break details that can expedite the process without compromising your decision.
Important information to look for:
- Ensure they’ve completed the entire application
- Rental history and previous landlord’s contact information
- Employment history and average income with W-2 or paystub
Important questions to ask:
- Has the tenant declared bankruptcy?
- Has the tenant been evicted?
- Has the tenant been convicted of a felony?
- Has the tenant refused to pay rent to prior landlords?
Contact References
Once you’ve narrowed down prospective tenants, you can now start contacting references such as prior landlords and employers to prove rent history and place of employment. It is customary to reach out to the tenant’s employer to confirm income and employment status. Questions you may consider asking the previous landlord are:
- Did the tenant pay their rent on time?
- Did the tenant care for the property and report any issues or maintenance requests to the appropriate parties?
- Did the tenant leave the rental in good condition upon leaving?
- Did the tenant have a good relationship with you or your property manager and the surrounding neighbors?
Background and Credit Checks
This is an essential step in selecting the right tenant. Running background and credit checks will ensure that they’ve truthfully filled out your application, have paid bills and rent on time, and can afford to rent the property. You want to ensure that you are placing your property in the most responsible and financially capable hands possible to avoid any hiccups in the future.
Making a final Decision
When selecting a tenant, you must always abide by a fair, consistent, and non-discriminatory screening and selection process.
Fair reasons to accept a prospective tenant may be:
- Sufficient income and references
- Responsible and stable history of employment
- Timely and responsible tenant to past landlords
- Good credit score and clean background check
- Friendly and good chemistry upon meeting
Fair reasons to deny a prospective tenant may be:
- Leaves the rental application incomplete
- No further follow up
- A past history of late rent or refusal to pay rent
- Provides fabricated references or employment
- Does not meet the income necessary to rent the property
Putting forth the time and effort to attract quality tenants is a worthwhile investment that will set your rental property up for success. A solid tenant will improve the communication, trust, and relationship between landlord and renter and ensure future property retention. Following the blueprint above will guide you in the right direction and hopefully relieve any doubt while making this major decision.
