The difficulty of being a landlord
comes in the gamble of new tenants. Their application may appear solid at first
glance and all meetings have been pleasant interactions. Then, before landlords
realize it, they are destroying property, disturbing neighbors, and are late on
their rent. Performing proper tenant screening will help prevent bad eggs from
getting in the building.
The process of tenant screening
should fully evaluate prospective tenants. It is to decide if the tenant is
likely to fulfill the terms in their lease or rental agreement while taking
care of the rental property. The final decision comes down to full approval of
a tenant, conditional approval such as requiring a cosigner, or denying a
tenant entirely.
There are certain qualities
landlords need to be on the lookout for in a great future tenant. First, they
need to be willing to pay rent with the condition their income exceeds at least
three times the monthly rent. Without reliable payment, eviction occurs which
could give landlords thousands of dollars in legal fees.
Not only do tenants need to make
enough to pay rent, they also need to be willing to pay on time. Some landlords
see late rent as a benefit for the income they get from late fees. However, a
tenant who pays late may stop paying completely. It is stressful when rent does
not come in. This can be avoided by renting to tenants with a solid history of
paying on time.
A tenant's job must be stable and
long term. If they switch jobs often, or have long periods of unemployment,
that could equal long periods of missed rent. A tenant must also be clean with
good housekeeping skills. Since tenants will leave the complex one day, they
need to be able to clean and orderly day to day, along with the ability to take
good care of the rental property.
A tenant with an extreme criminal
history should not be discriminated against, yet landlords also need to
cautious. If possible, get in contact with a parole officer if crimes were
recent. If they occurred many years ago with no known incidents since then,
they are safe to approve in that aspect.
Drugs are a complete tenant deal
breaker. Drug use will cause faulty payments, damage to property, and begin
other illicit activities on the property, giving the landlord an unwanted
reputation. Any illegal activities cause only stress and expense.
When screening tenants, consider how
much stress they may cause in the future. If they are high maintenance and
constantly demand the landlord's time and attention, they are probably not
worth approving. These kind of tenants will cause the landlord problems. Only
approve these tenants if finding other quality tenants has been difficult.
Tenants should be given a few
minimum requirements they must meet in order to be applicable. These standards
need to be placed in the ad which advertises rental availability. They can also
be discusses in a pre-screening phone interview. It is imperative that all
landlords perform a phone interview before showing the property. This saves
time with false applications.
On the phone, verify the tenant
makes three times the amount of monthly rent. This exact number for income will
help filter out tenants who believe they can afford rent but actually cannot. A
tenant must have references from past landlords. References from personal
friends or family are a red flag on an application.
A tenant should not have been
evicted in the recent past. If they have, they need to be denied approval.
Criminal or drug activity in their backgrounds is another red flag that needs
to be thoughtfully considered by a landlord. People may change their behavior,
but the general rule is that behavior had to be at least two year prior with no
signs of incident since then.
