how do you screen a prospective tenant

Steps of the tenant screening process:

• Pre-screen prospective tenants with a questionnaire.
• Collect the tenant’s information via an application form.
• Conduct a background check for credit and criminal history.
• Conduct reference checks (employer, past landlords, etc.).
• Review and analyze collected information.
• Respond to Applicants.

Full Answer

How to screen for the best tenants?

Requirements You Should Take Into Consideration

• Salary range. An ideal tenant’s rent-to-income ratio should be three times the rent fee. ...
• Credit history. A high credit score indicates that the tenant has a positive financial history, making payments on time, which makes them a more reliable candidate.
• Eviction. ...
• Criminal history. ...
• References from the employer and previous landlord. ...

How to effectively screen tenants for your rental property?

Some typical things you want to include are:

1. The Location of the Property. This allows you to screen out people who are not looking to live in your part of town. ...
2. Property Details. Give as many details on your property as possible. ...
3. Rental Amount. ...
4. Total Move In Costs. ...
5. Pet Policy. ...
6. Smoking Policy. ...
7. Income and Employment Verification. ...
8. Criminal History. ...
9. Credit Score and History. ...

More items...

What do you do to screen a tenant?

Would You Like A System For Screening Tenants?

• screening with a good rental advertisement
• screening with an initial phone interview (using the 7 questions)
• screening with an in person interview at the property
• using a solid application form
• calling of work references
• calling of landlord references
• and finally a credit/criminal check

How to screen tenants in 5 steps [infographic]?

Steps of the tenant screening process:

• Pre-screen prospective tenants with a questionnaire.
• Collect the tenant’s information via an application form.
• Conduct a background check for credit and criminal history.
• Conduct reference checks (employer, past landlords, etc.).
• Review and analyze collected information.
• Respond to Applicants.

How do you evaluate a prospective tenant?

Pull a Credit Report It's always smart to pull a credit report to see how financially healthy a prospective tenant is. A credit check will show you an individual's credit score, how much debt they have, whether or not they've ever filed for bankruptcy, and—most importantly—whether they've ever been evicted.

What should I ask a potential tenant?

Top Tenant Screening QuestionsWhat date would you like to move in?Do you have pets?How long have you lived in your current home?Why are you moving?How many people will be living in the unit?How many people living with you smoke?What is your monthly income?Have you ever been convicted of a relevant crime?More items...•

What questions can you not ask a potential tenant?

Seven Questions Landlords Can't Ask on Rental ApplicationsWhat is your race? ... What is your nationality? ... What is your religion? ... What is your sex and sexual orientation? ... Do you have children? ... Have you been arrested? ... Are you disabled?

How can I check a tenant?

Ways to Verify Your TenantIt is typically the mandatory responsibility of the property owner to share the relevant tenant details with the police and get a clearance certificate for the same. ... You can do a small check on the prospective tenant on your own as well. ... Read: Your Complete Guide to Rental Agreement in India.More items...•

What makes a great tenant answer?

Respectful Behavior Pay rent on time. Follow lease terms. Refrain from causing problems with other tenants or neighbors. Keep from damaging your property beyond normal wear and tear.

What do new tenants look for?

A tenant reference checklistCredit check. There are plenty of online sites you can use to carry out credit checks on potential tenants. ... Bank statements. ... Employer reference. ... Proof of address. ... Proof of identity. ... Previous landlord reference. ... Right to rent certification.

How do you respond to a potential tenant?

In your acceptance email:Let the tenant know that your property is still available and you'd like to rent it to them.Let the tenant know that the next step is signing a rental agreement.Confirm the move-in date.Discuss collecting the first month's rent and the security deposit (if applicable).More items...•

What do landlords ask for when renting?

Landlords and agents usually want to check that you can pay the rent. They may ask to see: an employment contract or letter from your employer. recent payslips or bank statements.

What is a reference check for renting?

Reference checks You'II be asked to give references to show you can afford the property, and will be a good tenant. You'll usually have to give a reference from: your current landlord and previous landlords if you're renting from a letting agent. your employer - to show you have a job and it will continue.

What background check do most landlords use?

Some landlords look at the overall credit score while others pay specific attention to the details of the report....The majority of the data you'll see comes from the three major credit bureaus:TransUnion.Equifax.Experian.

How long do tenancy checks take?

How long does tenant referencing take? Generally, tenant referencing should take no longer than 48 hours. Again, this depends on exactly how many checks the landlord/estate agency is doing.

How can I get a background check for an apartment?

Overcoming a Bad Background CheckSearch differently. Watch for openings in duplexes, smaller apartment complexes or single family homes. ... Make a good impression. When you meet a landlord, make sure you're on time (or early) and neatly dressed. ... Ask for referrals. ... Use government resources. ... Offer more. ... Avoid temptation.

What are the qualities of a good tenant?

Nine Qualities that Make a Good and Dependable TenantProvides a Good Detailed Application. ... Has a Good Record. ... Easy to Communicate with and are Respectful. ... Pay Rent Timely. ... Accommodating. ... Cares for the Property. ... Maintenance Issues are Communicated. ... Adheres to legislation and terms of the Tenancy Agreement.More items...

How do you respond to a rental applicant?

In your acceptance email:Let the tenant know that your property is still available and you'd like to rent it to them.Let the tenant know that the next step is signing a rental agreement.Confirm the move-in date.Discuss collecting the first month's rent and the security deposit (if applicable).More items...•

What are the features of tenant screening?

Most of them share common features, such as a review of payment history, credit score, and background check. However, certain platforms offer some unique features and practical solutions.

What is a background check for a tenant?

Background checks provide you with information on the tenant’s professional qualification employment history, possible work conflicts, or discharges.

How to know if a tenant is the right person to move into your property?

Remember that it is essential to screen your tenants, even if they seem extremely polite and friendly. Tenant screening is the best way to know if your prospects are the right people to move into your properties. Get a credit report that will show you the details of any applicant’s payment history.

What is Rentberry?

Rentberry is my personal favorite. It is a transparent home rental platform that automatically screens all of the applicants. The landlord receives a comprehensive report on the person’s background and credit history absolutely free of charge. Learn how to screen your tenants on Rentberry.

What happens when you let a good tenant in?

When you let the good residents in, you can be sure that your home will stay undamaged and that you’ll get the rent paid on time.

Why do you need a background check when renting a house?

In order to minimize the possible risks while renting out your properties, you should order background checks from your prospects to know if they had any criminal records in the past. A background check helps you to assess the candidate’s character and past history.

How to verify a tenant's credibility?

First of all, you will be able to see any collection records, accounts that are past due or discharged. That would help you to identify the tenant’s financial behavior and money habits .

How to verify a tenant's income?

You can do this in one of two ways: You can ask the tenant to give you a copy of a recent paystub, or you can contact the employer directly to learn more. Keep in mind that not all employers will give out salary history details or other private information. But, the employer can tell you whether or not the tenant is a current employee.

What information do you need to know about a tenant?

For best results, choose an application that encompasses financial information, employment information, and personal information. Make sure the application plainly states that a background check, criminal history report, or credit check will be ordered if appropriate, and that the prospective tenant is granting authorization for a check into his or her financial, employment, and personal history.

What happens if a tenant maxes out his credit card?

If the tenant has maxed out all of his credit cards, carried hefty loans, or has several unpaid balances, he may struggle to keep up with the rent payment.

What should landlord contact information be?

Contact information for previous landlords should be listed with previous addresses, amounts of rent paid, and reasons for leaving. Are there any gaps in rental history, or are the names and contact inf0rmation for any landlords missing from the application?

What information is needed to rent a house?

Financial information such as bank accounts and credit cards , including balances and minimum monthly payments, help to provide a financial “picture” for a prospective tenant and offer insights into his or her ability to pay the rent each month.

What to do if tenant has been evicted?

If the prospective tenant has recently been evicted, you may want to reconsider renting to the person. Alternatively, you can ask for more details about the eviction. Criminal Records. While you can overlook a youthful indiscretion, you may want to pass on any tenant with a lengthy or serious criminal record.

How long does a tenant's credit history go back?

Either way, it’s a good idea to pull a tenant’s credit. A credit check will show you details about the tenant’s previous credit history, going back 7 to 10 years. You can order a credit report and credit score using the Equifax Identity Report. Consider the following when you review the credit report: Credit History.

What is the most important step in tenant screening?

One of the most important steps in your tenant screening process is developing your minimum list of requirements for your property.

When screening a potential tenant, are you free to discriminate?

When screening a potential tenant, you are free to discriminate based upon your perception of the tenant’s inability to pay rent; lack of employment history; and any significant criminal history.

What to do after an offer is accepted?

After your offer is accepted, the next step is to move on to the next step of acquiring all the preleasing fees, and onboarding your tenant.

What is the first measurement of a tenant?

The first is the overall length of time the tenant has been employed continuously. This measurement should be done in years.

What is objective in tenant?

Your objective, is to identify those subjective and objective qualities that will make your life, and business relationship, with your tenant easier.

Why is screening criteria important?

The purpose of making the screening criteria known is so that there is a clear understanding of what your requirements are, so you don’t end up wasting your, or the tenant’s, time.

Why do landlords have headaches?

The vast majority of headaches for landlords come from tenant’s who are unable to pay their rent on time.

Know how fair housing laws work

Landlords are free to pick and choose among prospective tenants, provided that all local, state, and federal fair housing laws are followed.

How to screen tenants

Having a tenant screening system in place helps investors ensure that every applicant is treated equally and fairly and reduces the risk of violating fair housing laws or inadvertently skipping an important screening step.

10 important questions to ask a prospective tenant

SmartMove by TransUnion is an online tenant screening service that provides various reports, including eviction, credit, and national criminal background checks. In a recent blog post, the company listed 10 questions that should be on every rental application:

How to turn down an applicant

There are situations in which prospective tenants don’t meet a landlord’s minimum screening requirements and will need to be turned down for the rental property. Here are some valid reasons for declining to rent to an applicant, according to guidelines published by the Federal Trade Commission (FTC):

What is tenant screening?

Tenant Screening. Screening is an essential part of finding a great tenant. You can begin the screening process immediately, as soon as a prospective tenant calls to let you know they saw your listing and is interested in the rental. In fact, you can even start the screening process before ever having someone lay eyes on your property listing.

What does setting the rent price do?

Simply setting the rent price will screen out applicants who know they cannot afford your property. Additionally, if you list out your other requirements such as a rental application, credit report, and criminal history check, you’ll turn off the prospects that know they wouldn’t pass your tests.

What is tenant screening?

The goal of tenant screening is to make an informed decision about prospective tenants. You want to choose a quality tenant who will pay rent on time and take care of your property.

What is the most important part of tenant screening?

Use a Tenant Screening Checklist. The most important part of tenant screening is making sure you have a standardized and consistent process. This helps ensure you tick all screening boxes, don’t miss anything major, and don’t violate Fair Housing laws.

What happens if tenant screening is successful?

If your tenant screening was successful, you should be able to determine if a tenant is likely to pay rent on time and take care of your rental property. If you’ve found your ideal applicant, then it’s time to accept them.

How to accept a tenant?

You should accept an applicant via email. That way, you can follow up with next steps immediately. In your acceptance email: 1 Let the tenant know that your property is still available and you’d like to rent it to them. 2 Let the tenant know that the next step is signing a rental agreement. 3 Confirm the move-in date. 4 Discuss collecting the first month’s rent and the security deposit (if applicable). 5 Create a deadline for when you expect the lease agreement to be signed by. It’s reasonable to ask a tenant to sign a rental agreement within 24 to 72 hours of providing the agreement.

How to accept an applicant for a rental?

You should accept an applicant via email. That way, you can follow up with next steps immediately. In your acceptance email: Let the tenant know that your property is still available and you’d like to rent it to them. Let the tenant know that the next step is signing a rental agreement. Confirm the move-in date.

How long does it take to pay rent and deposit?

For the first month’s rent and any deposits, it’s advised that they be paid within a week of both parties signing the rental agreement. This should occur before the tenant receives a key to the unit and moves in. Be sure that the rent and deposit clears in your account, as sometimes tenants will initiate payments that don’t go through. This helps protect you from tenant scams.

How long does it take to sign a lease agreement?

Create a deadline for when you expect the lease agreement to be signed by. It’s reasonable to ask a tenant to sign a rental agreement within 24 to 72 hours of providing the agreement.

Questions for Prospective Tenants

Your rental application will cover some major questions and provide important information. Once you've found potential tenants who meet your requirements from the rental application, it's time to take the process of screening tenants a step further.

Things to Keep in Mind

Tenant qualifying standards must be the same for every single tenant who applies to fill your vacancy. Under the Federal Fair Housing Act, it is illegal to alter these requirements or have different requirements based on certain characteristics of potential tenants.

Step 1: Preparations and Advertising

Before you can do anything, you have to plan and prepare for the process to run smoothly.

Step 2: The Interview

After putting up the vacancy ad, the next step would be to interview everyone who shows interest in the property.

Step 4: Final Decision and Lease Signing

This is where you get to decide on who makes the cut. Obviously, the one with the most merits is the one that will get to sign the rental agreement.

How Should a Landlord Start a Background Check?

The first thing a landlord should do is check that the applicant’s identification card and all the information contained on the rental application are valid . This would include calling references and employers. The rental application fee must be valid. The landlord should then access eviction records at the local courthouse, and go to the police station to pull up arrest files.

What about Commercial Tenants?

The overall goal remains the same: can this tenant pay rent on time? However, the purpose of a commercial tenancy will make the screening process somewhat different from the screening process of a residential tenancy.