What's the best way to screen tenants & collect rent??

[Bryan Bacallao]

So I'm looking to purchase my 1st rental property. How/what should I use to screen potential tenants? What's the best way to collect rent? Is it normal to get the 1st and last months rent plus security deposit OR just 1st months rent plus security deposit? Suggestions??

[Lucas Hall]

Hi @Bryan Bacallao

I suggest getting a credit report and a background check. 

Here are my standards:

1. Income = 2-3x rent
2. No evictions, ever
3. No convictions last 2 years
4. No violent / armed crimes, ever
5. No or low credit card debt
6. 650 credit score or higher

I don't think collecting last month's rent is wise.  It only restricts your usage as a landlord.  If you want more security than first month's rent + a 1 month deposit, then collect a 2 month deposit.  But also know that most tenants will have a hard time coming up with 3 months worth of money at once while continuing to pay their current rent. 

 I've been collecting 1st months rent + a 1 month deposit for 10 years and it works fine as long as a do a great job screening applicants.