WANT TO BUY OR SELL A PROPERTY?
Professional Tenant Screening and Best Practices
It's official. You've just invested in your first rental property. You're thrilled about your new investment, until the dread of the unknown creeps into your brain. One major question hovers in your mind: who will be living in your investment? How do you ensure the tenant living there will be responsible, qualified, and on top of payments?
If this sounds like you, don't panic. Tenant screening is actually easier than you might think, for one simple reason. You don't choose a tenant. Your tenant qualifies for your rental, or doesn't. This both lifts the pressure from you feeling like you have to choose the right person, and protects you from any sort of Fair Housing violation, allowing you to make objective decisions (your applicant's credit score is too low) as opposed to subjective decisions (you didn't get a good feeling about the applicant). The fact of the matter is that simple screening and guidelines will make your life easier and dramatically reduce chances of discrimination claims against you.
So, how does professional tenant screening actually work? Your property manager will have basic criteria that every applicant must meet, such as income requirements, credit score, criminal history, etc. They make sure none of these are related to any protected classes, and make sure they screen each tenant the same way every time. The criteria will be published in the rental ad, so prospective tenants know what to expect right away.
As you create your screening criteria, you should have two goals in mind: remain in compliance with Fair Housing requirements, and create a list that will best assist you in finding an applicant that will pay rent reliably, follow lease terms and rules, and treat the property with extreme respect. Some ethical, objective application requirements:
- Verification of income and employment (demonstration of ability to pay bills on time)
- Review a credit report
- Follow-up with previous landlords
- Ask for references
- Review criminal history
- Review public records
- Review history of lease violations or history of evictions
- Consider pets
The last thing to keep in mind? The first person to pass your tenant screening qualifications is offered the property. This makes it easier on you, and again, helps you avoid sticky situations. Give the prospective tenants a deadline to pay their security deposit or other financial terms as specified in your lease. If the deadline passes, move on to the next application. Remember to document everything, and keep all your communications in writing. You never know when you might need to prove that you are operating within the boundaries of fair housing.
Does this still seem like a lot to handle on your own? BoiseTurnKey has specific tenant screening criteria, and we'd walk you through setting up applications and rental agreements. We value protecting our clients and providing quality housing for all, and above all, we want your process to be seamless and stress-free.
Reach out to us here with any questions or to set up a meeting with one of our agents!
