As an Asset Garden landlord, finding the right tenants for your rental properties can be a difficult task. You want to ensure that your tenants are reliable, responsible, and respectful of your property. It's important to screen potential tenants to make sure they meet your criteria and are a good fit for your rental property (and a good fit for you!). Here are some steps you can take to screen tenants for your rental properties.
Create a Tenant Application Form
Creating a tenant application form is a great way to gather information about potential tenants. It's important to have a standardized form so that you can compare all applicants fairly. A tenant application should include the following information:
Full name and contact information
Employment and income details
Rental history
References
Any pets
Any criminal history
How many others will be living there; get their names and contact info
Make sure your tenant application is compliant with all relevant laws and regulations. Check with your local office supply stores who often have relevant to your locale or state forms.
Verify Employment and Income
It's important to verify that potential tenants have a stable source of income to ensure they can afford rent. Ask for employment and income details on your tenant application form and request that they provide proof of income such as pay stubs or bank statements. You can also contact their employer to confirm their employment status and income.
Check Rental History
A potential tenant's rental history can provide valuable insight into their behavior as a tenant. Ask for references from their previous landlords (get as many as you can) and contact them to ask about their experience with the tenant. Ask questions such as:
Did the tenant pay rent on time?
Did the tenant cause any damage to the property?
Was the tenant respectful of the property and neighbors?
If the potential tenant does not have a rental history, you can ask for a co-signer
or request a larger security deposit to mitigate any potential risks. Another avenue to confirm the character of your prospective tenant is to drive by their current place to see how it's kept up if it's a single family home.
Run A Credit Check
Running a credit check on potential tenants can provide insight into their financial responsibility. A credit check will show you their credit score and any outstanding debts. You can request a credit check from a credit reporting agency, and the tenant will need to provide their consent. A good credit score is typically above 650, but it's important to evaluate the whole report and take other factors into consideration.
Run A Criminal Background Check
A criminal background check is a valuable tool for screening tenants. You can request a background check from a third-party provider, and the tenant will need to provide their consent. A criminal background check can show you if the potential tenant has a criminal history, including any past convictions, pending
charges, and registered sex offender status.
Conduct An Interview
An interview (preferably in-person) with a potential tenant can provide you with additional information that may not be included in their application. You can ask questions about their lifestyle, their job, their hobbies, and their reasons for moving. This can give you a better idea of whether or not the tenant is a good fit for your rental property.
Trust Your Gut!
At the end of the day, it's important to trust your instincts when it comes to screening tenants. If something doesn't feel right, it's better to pass on a potential tenant than to risk a bad experience down the road. A tenant who is respectful and responsible will help ensure a good experience for both parties.
A quality tenant is worth their weight in gold. And on the other side, a poor tenant will make you wonder why you got into this business. So it's imperative that significant 'due diligence' is given to this part of your Asset Garden's planting and fertilizing so that it will grow into a beautifully performing Asset.
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