How long does it take to screen potential tenant?

Question

I have this whole system in my head (and on paper) for screening potential tenants. I know this will vary, but how long should I plan (time-wise) for the screening process? Credit/criminal/eviction check should be pretty instant via online systems. But I know others also call references, employers, drive by the current home, scope them out online, etc.

I haven't even placed an ad yet, but I'm planning to pre-screen over the phone, and then set up appointments for a time block one day for viewings of the property. This will probably need to be done on a Saturday afternoon. Is it unrealistic of me to think that if I have a potential tentant ready to rent, that I could screen and offer them the lease by Monday or Tuesday?

In a nutshell, how long do you spend screening one tenant?

Michele Fischer · Answer

It does depend on what is customary in your local market.  We can't get an application fee in our market.  But we insist on a completed application and do our due diligence to verify the info.

My process generally takes about 2 days, and includes:

Research I can do quickly and for free:

Verify that pets and number of people fits standards for the unit.

Verify that income is high enough to support the rent.

Verify whether self declared criminal record, evictions, or bankruptcies clash with our standards.  Also take into account self declared court activity and debt/collections.

Perform social media and google searches.

Review application for stability/fit.  We give more weight to applicants who:

has held current job for over a year.  Wary if have never held a job for a year or longer

has demonstrated ability to stay at an address for awhile.

has lived in our city for years.  Our experience shows that those unfamiliar with our neighborhood are less likely to stay very long, and it is harder to find/serve people who move farther away.

Then I start phoning landlords and employers, trying to verify both independently.

Then I pay for background and credit checks.

Applicant is qualified, disqualified, or put in a holding pattern to see if someone better comes along.

Jane Z. · Answer

I have got a tons of good information from this website and thought it may be time for my contribution. As a full time working professional, I know time is limited for us part-time landlords. But we could still find the quality tenants with minimum efforts if you do it in a systematic way. The following is currently my process after tuning it up for the last three years.

1) Using free google site to create a simple tabbed website, which lists all your business information, application process, application acceptance policy, rental information, application form, pre-application form, FAQ, etc. The website cut down all the talks. Actually no talk is necessary because all the information is out there for them to review any time. I think quality tenants like an informational website. They are busy at working and don't have much time calling around either.

2) On postlets.com, create your rental ads. Postlet ads make your rentals look professional. On the ads, put your website link at multiple places. Postlets will generate a code for your ads. You could plugin that code to your google website so that postlets and your website will be synced all the time. Whenever you make a change to your ads on postlets, it reflects on your website too. On the ads, we mention that we only have open house on Sat and Sun from 2 to 5pm unless they download and fill the pre-application form on our website. We usually have a lockbox on our properties. Once they fill the pre-application form and make an appointment, we will give them the access code once they arrive on the property at the appointment time. We usually change the access code once a week or less.

3) Post your postlets on craiglist. Create more ads at vFlyer, RentLinx, etc. They are all free. But I like postlets ad the best.

4) I use Mrlandlord.com to do the tenant screen. They only charge $10 for screening. I charge $10 non-refundable applicatoin fee per applicant over 18 years old. But on the application form, I say I will reimburse the full application fee during the second month occupany if I accept the application. This way the application fee could cover the screening expense, at the same time not discourage the quality tenants.

5) Take good pictures of your homes. Many times I took more than 50 pictures from different angels and only pick the best ones for the ads. Good tenants like decent-looking houses.

6) Online automatic rent payment is required for all my properties. I use eRentPayment. They charge $3 per transaction. I have nothing but good things to say about their service. With this service, we never need to call our tenants for payments and the rent is always paid on time on the 1st of the month.

7) We always take care of our tenants problems as soon as possible. If a tenant pays rent online, I think he deserves a responsible landlord.

So far my landlord experience is very positive. No single late payment for the last three years.

Bienes Raices · Answer

@Joe Gore

Sometimes people who filed for BK aren't very good about following rules or doing things the right way in life.

Account Closed · Answer

Jay,

Your process with an answering machine with some might work, but some good tenants will say if a landlord cannot  answer the phone why  should I rent from them if they cannot  pick up the phone.

Joe Gore

Jay Orlauski · Answer

One screening process I found useful was to set up a message line for people to call into on an answering machine. The message would include all the information about the apartment and mention that there will be criminal background checks, credit checks, deposits, etc. I list some of the rules like no large animals, no smoking and sort of thing.Then I say, "if your still interested , please leave a message and we will get back you ".  I find that I get a lot of hang ups - which is good , cause that is one less person I have to explain everything to , only to have them say 'no thank you. '  the people that DO leave a message are usually more qualified and prepared for criminal/ credit checks have the deposit money - then I use a background screening company and charge them my costs.

Account Closed · Answer

They call that stringing the tenant along and not being honest with the tenant.

Joe Gore

Steve Babiak · Answer

@Carrie Westover - as simple as "We're still evaluating your application."

You can then go a little more and say that you noticed some potential issues and you want to be certain that they aren't serious.

Aly W. · Answer

I basically do what @Jane Z. does as well. If I can verify their employment and rental history in 1 or 2 days, I conditionally approve the application. I charge to run the background/credit, and credit it back as Jane said.

My application is free, because if they know they're going to pay not only for the background check, but in our condos, they have to pay at least $100 for the association's application too. If they pass mine, they'll almost certainly pass that one. But they understand from the get-go that they need a clean background, before they start spending money.

Carrie Westover · Answer

When you put them in a holding pattern, does that mean it is like a conditional qualify? How do you communicate this to the prospective tenant? Thanks!

Account Closed · Answer

Michele,

Why would you be concern about bankruptcies? You can only file ever 7 years. That means a consumer is getting a new start.

Joe Gore

How long does it take to screen potential tenant?

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