When it’s time to find a new tenant for your rental property, you should be consistent in your process so you know what to look for. Here are some basic checklist items you should complete when screening new tenants.
Tenant’s need to be able to afford their rent on time. As a general rule, income should be around three times the monthly rent. Tenants must show proof of income in addition to paying the security deposit and the first month’s rent upon signing the lease. With property management software, you can have the applicant complete an online application and upload copies of their pay stubs, driver license, letter of employment, and bank statements. It is important for you to verify that their income source is steady.
Prior Rental History
With PropertyZar (and many other web based property management software) the tenant screening is included. Tenant screening should include evictions. Another key question would be, Why are they moving? You should pay close attention to this answer. It will be enlightening as to any deeper problems that might exist. You should also ask them for the contact information of previous landlords in order for you to check their rental history. Confirm that they pay their rent on time and regularly and did not have any unnecessary issues with the prior landlords.
Tenant Credit w/FICO score
Be sure to include a credit with FICO score check in your screening process. Credit checks will help you identify if they are financially stable with an acceptable debt ratio. Credit checks will also reveal whether or not there are any prior liens, bankruptcies, judgements, or late payments.
Tenant Background check
All background checks should include a complete background check that includes criminal history. You will want to know if they have a criminal record including sex offenders. This should also confirm their identity. Be sure to obtain at least 3 verifiable references.
If all else passes the tests, next thing you should do is meet the tenant in person and conduct an interview with them. Just by talking with them , you will get a good sense about them and what kind of person they are. Learn about their lifestyle, job, if they smoke or have pets, and so on. Be sure to abide by all fair housing laws and regulations..
This may seem like a lot of work, but the right property management software can automate and simplify these steps and safe you a tremendous amount of time. Online property management software can reduce your stress and more then pay for the cost in the time it saves you.
PropertyZar is a real estate technology company specifically in the web-based property management software for owners and professional property managers. Learn more www.PropertyZar.com