How to: Tenant Applications

Question

Hello Everyone!

I bought my first duplex, moved into one unit and fixed up the other, I am now ready to start advertising the unit and showing potential tenants. I am stuck on how the tenants will fill out my applications and return them to me. I have paper applications but should I be using a website instead, i am sort of stuck mentally. Any help would be greatly appreciated!

Nathan Gesner · Answer

Don't use paper applications. Find an online service like TransUnion Smart Move. Applicants fill it out online, TransUnion runs a credit/criminal background with a recommendation, you check landlord references and verify employment, and you are done.

I recommend you include some of your key qualification criteria in the advertisement. For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets. Use the top three or four discriminators so applicants can screen themselves.

Then you need to have clear screening criteria yourself. What's the lowest credit score you will allow? Do you check Landlord references? Do you verify their income? Do you know how to read the credit/criminal background? What if they have collections or judgments?

Here's a detailed guide on how to screen applicants: https://www.biggerpockets.com/...

Tatum Littleton · Answer

You can use paper applications but those can easily be lost or destroyed and just difficult to handle with all the moving parts of having a tenant. I would use a website for that and do it electronically. There are plenty of websites where you can fill everything out and email it to them and it will notify you when it is all signed. I would recommend using Zillow, RentRedi, or LegalZoom. Some are paid and some are free, it's up to you.