Investing in rental property is a big deal. It is of extreme importance to protect your investment and yourself as a landlord. that is why great tenants are a game-changer in the business. in our latest blog, you can read the advice on selecting the right tenants.
Communication matters! When you are putting property in the market for rent, you should mention all the details that matter to your future tenants. List amenities and include amounts for the monthly rents and related fees. Mention the required deposit and all the information you find important. People should know what are they getting and how much they have to pay for that. This is an excellent way to save both yours and the time of people who don’t satisfy your standards.
What’s Involved in Tenant Screening in the North East?
Pay Attention to the First Impressions
An eye for detail is key when first meeting your future tenants. Did they come on time? Is their car tidy and well maintained? Do they seem organised? What kind of questions are they asking? If they are late, scattered all over the place, and asking for a reduction in deposit, that can be a sign of a bad tenant. You shouldn’t discriminate against people based on the first impression and discourage them from applying, but it could be indicative of how will they behave as a tenant.
Prepare plenty of tenant screening questions to get to know your future tenant better. Ask about the number of people that will live in the space, their pets, monthly income. Their monthly income should be at least triple the rent. It is good to know when do they plan on moving and if their current landlord is familiar with the date. If that’s not the case, they will probably not move for another 30 days at least.
While asking questions is encouraged, there are some areas you need to be careful about. Asking the exact number of children is one of the questions you shouldn’t ask. Questions related to race, color, national origin, religion, sex, familial status, or handicap are in the “red zone” because they can lead to discrimination of protected classes.
- Go through the lease with your future tenant to make sure they understand the terms of the tenancy contract.
- The application should be detailed and cover the following: personal information, date of birth, employment status, rental history, a list of references. A signature is mandatory, both on the application and the acknowledgment that they agree on having a background and credit check.
- Run the tenant background and credit checks. After getting the agreement, consult a service that specialises in these kinds of checks. This is a way to know if your tenant meets all of your criteria.
- Go through the references. People usually name the ones that will say good things about them, so ask detailed questions to get the most of the conversation, especially if speaking to previous landlords.
- Go detective mode. Social media is a convenient way to get to know more about a person. Check Facebook or Instagram for lifestyle insights, and go through their LinkedIn to check the employment information.
These are the steps you should go through with all of the applicants for a tenancy. If you want to reduce your costs related to the application process and refine the candidates applying, unfortunately you can no longer charge an application fee.
Rejecting a candidate
Having a tenant eviction is a big red flag for any applicant. It’s just not something you want to deal with. Any suspicious activity on their background and credit check should also be a sign to reject an applicant.
Tenant screening is a complex and time-consuming process, but you will thank yourself in the long run. Tenants make all the difference in property investment, and you want to avoid the stress and loss of time and money that bad ones can bring.