A bad tenant can cost you thousands of dollars in property damage and lost rent. A good one can make your investment property pay off. Therefore, you want to make sure you are only accepting the former and rejecting the latter when you run a tenant screening report.
How do you make sure you are doing everything you can to weed out bad results and accept the desirable ones?
Here are the tenant screening checklist essentials you need to know about.
Contents
Application Form
The application form is a key document used to screen potential tenants. Its purpose is to get important information about people who want to rent an apartment.
It has information about their rental history, their work history, where they get their income, and references. This standard form helps landlords get information that is consistent and useful. This speeds up and evens out the process of screening possible tenants.
Credit Check
A tenant credit check is part of the screening process. This is where landlords check out a renter’s credit history and financial history. This is done by looking at the credit report of the applicant. This covers their payment history, credit score, and any debts they still owe.
Landlords can tell if a renter is likely to be able to meet their financial responsibilities and pay rent on time this way. It helps the owner choose a good tenant and lowers the chance that the rent won’t be paid on time or at all.
Background Check
An important part to include in your tenant screening checklist is a background check. This is where landlords review a potential tenant’s criminal history to see if there are any safety issues or risks to the property and other renters.
It involves looking for past convictions, charges that are pending, or arrests. This makes sure that the residence is safe and secure while also following legal requirements.
Rental History Verification
Rental history verification involves contacting previous landlords or property management companies listed on the applicant’s rental application. This is done to assess the applicant’s past behavior as a tenant.
It focuses on payment history, lease compliance, and overall conduct. This examination helps assess the applicant’s reliability and responsibility as a tenant. It allows the landlord to make informed decisions about their suitability for the rental property.
Income Verification
In income verification, landlords confirm the applicant’s financial stability and ability to pay rent. They do this by reviewing pay stubs, bank statements, or tax returns.
This helps verify the applicant’s source of income and make sure that they earn enough money to cover the rent, usually at least three times the monthly rent.
This helps the landlord assess how responsible the tenant is financially and reduces the risk of late rent. It also ensures a more secure and stable tenancy for both the landlord and the tenant.
Be More Prepared by Having a Tenant Screening Checklist
Tenant screening is an essential process that every landlord or property manager should prioritize. It not only helps to ensure the safety and well-being of both tenants and properties but also minimizes potential issues and conflicts in the long run.
Use our complete tenant screening checklist as a guide, and make sure to conduct thorough screenings for the best tenants. Don’t wait; take action now and secure your property with reliable tenants.
Is this article helpful? Keep reading our blog for more.