Getting the right tenant for your rental property is a major key to your success: it means you know the rent will be paid on time and your property will not suffer too many unexpected damages. Even if you think you’ve found a perfect candidate, it’s important to screen potential tenants thoroughly to ensure that there are no surprises once the tenancy agreement has been signed. The sections below detail the steps for how to effectively screen tenants.
Request a Rental Application
Ask all prospective tenants to complete a rental application. You can get a sample application from a real estate agent or download one online. The application should elicit at least the following information:
• Current and Previous Employers
• Current Income Level
• References from Previous Landlords
• Financial Status Information
• Personal references
Perform a Credit Check
You can use a credit report agency or software to check a prospective tenant’s credit history. This can usually show a previous credit history going back up to 10 years and will include their current debt levels. While some small infractions are not a reason for refusing tenancy, serious financial problems, such as a previous bankruptcy, may be a red flag. Having high levels of credit card debt may also be a sign of poor money management.
Run a Background Check
It’s important to perform a background check on the prospective tenant to find out whether they have been subject to eviction, any criminal history, or legal action.
Contact Previous Landlords
When contacting previous landlords, it might not be enough to simply ask whether the rent was paid on time and whether the tenant left the property undamaged. It is a good idea to try to get a better sense of the tenant’s behavior by asking whether they paid rent on time or were often late, if there were ever any complaints from neighbors and so on.
Contact the Tenant’s Employer
Sometimes it’s a good idea to contact the employer the applicant has listed just to make sure that the income and length of employment they have stated is accurate and that their employment status is unlikely to change in the near future.
Interview the Tenant
Once a prospective tenant has passed the above checks it’s a good idea to do a quick phone interview just to get a better feel for them as a person and whether you are comfortable renting to them. This is a time to ask questions about pets, smoking habits, visitors and so on.
As a rental property owner, or as an Atlanta property manager, you have a right to screen every potential tenant because of the financial risks involved in finding the wrong tenant, having to evict them, and then go through the whole process again. Always keep in mind that the Fair Housing Act states that you cannot, as a landlord, discriminate based on an applicant’s race, disability, familial status, national origin, religion, or gender.
At Specialized Property Management Atlanta, we have a thorough, proven tenant screening process. We can help you find the best tenants for you and your property. Contact us today for more information!
