How To Set Up A Tenant Screening Process

[vc_row][vc_column][vc_single_image image=”12410″ img_size=”1500×350″ alignment=”center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]If you’re looking for quality tenants for the first time, you may feel as though you’re searching for a unicorn. Sometimes people seem completely reasonable when you’re screening applications, and months down the road unanticipated issues crop up. More often than not there is precedent for tenant behavior, which is why a thorough application process is so vital. If there is a way for a prospective tenant to omit information on a checkered rental history, they’ll find it. At the end of the day, locating the right tenants comes down to what questions aren’t asked as much as how the existing questions are answered. 

This is where property management companies offer exceptional value to property owners. There is a tried and trusted application strategy in place for dealing with prospective tenants, and property management companies have the most experience here. If you’re leaving this process up to a property management company for the first time, make sure you know ahead of time how much protection that company is going to provide. 

Find out what the actual tenant application process is 

While there is no absolute set of questions for guaranteeing the best tenants possible, as a general rule the more thorough the application the better the results. The key takeaway from years of experience with tenant applications is that the fewer blanks in questioning the more you can trust the applicants. You typically won’t know the people applying to be tenants, so you shouldn’t automatically trust them. Trust should be earned – not given out automatically. Especially as regards rental contracts. 

To this end, most questions are fair game – income has to be verified so you can be sure monthly payments can be made. Credit reports should be run so you can be sure this person doesn’t have excessive outstanding debts. Personal references and former landlords should be contacted. The vetting process needs to be as thorough as possible. The stone you leave unturned tends to be the one that’s hiding a future problem. So leave no stones unturned! 

At a minimum, the following should be included: 

  • Current Income (not past) 
  • Expected Future Income (if different than Current Income) 
  • Employment Verification 
  • Credit Report 
  • Public Notice Checked (for Bankruptcy or Eviction) 
  • Personal References 
  • All information checked for inconsistencies 

Find tenants with long-term goals 

There are additional ways of ascertaining whether a tenant is a “good fit” that are far more general in nature. For example, the more someone is committed to different aspects of their life (such as family, schooling, or their career), the more you can generally trust their ability to live up to their end of the contract. The less someone has to lose, the less reason they have of maintaining a contract with anyone. There are far fewer consequences for the latter type of person than the former. People with less consequences tend to have less impetus to make monthly payments on time, to alert you to necessary maintenance, or to be respectful of others near your property. 

The key takeaway here is that you want people who are committed to long-term goals. Being able to properly identify and do business with these people can substantially reduce the rate of eviction you experience. Hopefully your current eviction rate is zero, but the more properties you manage over time, the more likelihood exists that you will have to evict. It’s simply a numbers game – and crafting a solid tenant application process can help you beat the odds! 

If you have any questions about this process, or are looking for someone to actively manage your current properties, give us a call: (240) 349-2117 [/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_cta h2=”HAVE MORE QUESTIONS OR NEED HELP WITH YOUR RENTAL PROPERTY OR COMMUNITY?”]Fill out the below form or give us a call (240) 349-2117 or check out our contact page[/vc_cta][/vc_column][/vc_row][vc_row][vc_column]

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