How do you screen tenets?

Question

Hey all!

I have a handful of questions regarding filling a vacancy. If anyone has a moment, I would appreciate some feedback on a few things. Also, for context I am renting out my first multifamily property in the Boston area:

- How typical is haggling when it comes to agreeing on rent? If you want your unit to be rented for $3,000 should you post it for $3,200 because everyone will be trying to get that number down?

- What do you use to screen a prospective tenets credit score, eviction history, criminal history, etc.?

- What parameters do you set for your tenets income in order to rent to them (example: gross income 3x rent)?

Thank you.

Drew Sygit · Answer

@Aaron Landau just about everything in life can be negotiated.

If you overprice your listing, how many tenants will be interested?

This is all part of the process of being a landlord.

How are you accessing background checks?

How are you determining income, avoiding fake paystubs & employment?

Eric Gerakos · Answer

Tenets are a waste of time. It’s tenants that you should be concerned about.

Warren Lizo · Answer

@Aaron Landau

Screening tenants is probably the MOST important steps of renting a property. In Massachusetts they love making it difficult. The MassCourts.org dataset that feeds tenant background check companies is currently deleting records because of eviction sealing!

First, not all screening systems are the same. Most small landlord screening platforms rely on TransUnion which is not my favorite. (If anyone knows of a platform that uses Experian, please DM me!). Websites that reduce screening down to a "score" always do a bad job, in my experience. Don't rely on Zillow's app. MyRental.com from SafeRent does a decent job.

Second, learning how to read a credit report and setting consistent standards for renters will reduce the risk with each rental and to ensure Fair Housing Compliance. If you get sued for Fair Housing discrimination, whether intentional or not, it's going to be expensive. I've seen it break some small investors.

Third, just my general professional advice here: If an applicant owes any utility or telcom - reject. Get the prior landlord's recommendation. Search the county courthouses of prior addresses. While brokers are great at soliciting great applicants, Property Managers do a better job of screening than brokers because PMs have to "live" with the tenants.

If you have any questions about screening or property management in general, feel free to reach out. I can be texted at the number in my signature.

Tas S. · Answer

Just started using https://www.turbotenant.com/ it gives you a focal point to house documents, gives you a credit report and some other things but it's still your decision to make with the collected information.

Tenants are a crapshoot in the end either way. Hopefully your state is landlord friendly.

-Tas

Adam Bartomeo · Answer

Two of your questions will be more situational and location based.We don’t ever haggle on pricing, although I would suggest being flexible

We check credit, criminal history and everything that goes along with that, evictions, and income. We prefer 600 or better but are willing to work with people under. No evictions, no felonies, 2 1/2 times income.

Daniel McDonald · Answer

I’m just north of Boston. House hacked my way into two duplexes. I wouldn’t post your rent for higher and expect someone to try to haggle. That hasn’t happened to me. They are probably not the right tenants for you anyway. Those are the ones who are going to bug you about every little thing. Don’t do it to yourself. I do however keep my a little below market value so I get a bigger tenant pool. Although if you’re renting out right now in Boston winter will seem a little slower.

Depending on what softwares you use they can usually pay for the background check themselves. I like 3x gross rent scenario, no past evictions, and a credit score of 600+

Benjamin Aaker · Answer

I'm not in Boston, but I post the asking rent and do not haggle.

I've got a property manager to do my screening now, but when I self-managed I used SmartMove by TransUnion. It's been a while since I used it, so may have changed after TransUnion purchased it.

Parameters: Income is >3x the monthly rent. No evictions. No violent felony history. No bankruptcies in past 7 years. Credit score 670 or higher. Nonsmoker.

How do you screen tenets?

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