Big Deal on Screening Tenants!!

[Carlos Rodrigues]

Good afternoon BP I hope everyone is doing good today. For those who don't know me I sum up who I am and why I'm on BP real quick, then I'll ask my question.

My name is Carlos Rodrigues and I'm new to this real estate industry but currently studying it and taking ongoing courses for my real estate license. I here so I can keep gaining knowledge in real estate, and ask questions i need guidance on. I'm yet to purchase my first property but I will real soon and I'll be talking about it when the time comes. I first want to have unanswered questions answered so when the time comes I'm ready. Thank you in advance for helping me out, its appreciated.

Okay now to my questions and concerns on screening tenants. I have read BP guidelines on screening and a few other threads, and I definitely learned what people are doing to screen there future tenants.

I'll share what I've learned below, and please add to the list:

- Have a standard on what I'm looking for in a tenant 

- Pre-screening over the phone

- Use good judgement off first impression (how they carry themselves, car they drive, etc)

- Have them fill out a application forms, stating personal info (ss# & DL), rental & employment history

- Background check

- Credit check

- Eviction History

- Get a co-signer?

- Income 3x the rent

- References

(please add on)

1. All this is great to do when screening tenants. But now my issue is I'm not hiring a property management to do this all for me, I'm doing it myself. I'm in New Jersey and trying to purchase in Elizabeth NJ and lease there. And now my question is since giving a application isn't a common thing from what I think, how do I just give them a application and ask them to fill all there personal info. Do I give it to them before or after them seeing the property or only if they're interested in moving in? 

2. Also how can I then get a background, credit check and eviction history (mysmartmove.com) if they don't feel comfortable doing so? 

3. Also in this area theres a lot of illegal immigrants, and no discrimination here I have no problem renting to them, but what would I have to do here? Do I just skip this step? Would you?

4. Also I've heard I can't say no when leasing a property if a tenant wants to live there, but what if it fails my standards? Such as criminal history or bad eviction history. Is this true? Can I decline them without breaking the law? 

5. Can I disqualify them and tell them no if they don't meet the requirements? Maybe they don't get paid 3x the rent or they have a bad eviction record? 

6. Do I put a disclaimer on the application stating something? And would you change them an application fee? Why?

I just need some help and guidance on what to do on some situations. Screening tenants is probably my biggest worry and fear when it comes down to real estate I would think. I don't want problems and that's why I want to make sure I get a potential good tenant. Of course I heard of the 5% eviction rule.

Please if you're able to answer these questions or some of them it would be great!! Tenants bring the cash flow, so screening to me is a BIG DEAL!

Thank you in advance once again!!

[Richard Campbell Jr]

1. Once the phone screen is complete, I will have an idea if they are "acceptable" tenants or not. I also answer all their questions. If they don't meet my standards, I tell them they probably won't qualify, but I still show them the house if interested (I do that so I don't seem as if I am discriminating in any way.) Once I show them the property, I ask if they are interested and if they are, then I give them the application and tell them I will not process the application until the application the fee is paid. I will give anyone interested the application even if I know they won't pass/apply so I do not seem as if I am discriminating. The reason there is a fee is because the website I use to screen charges me.

2. Inform them that there is an application process and it needs to be followed. If they are unable to apply via your provided application, then you cannot rent them the apartment.

3. I don't know the answer so I did a quick search. Here it is:

While asking applicants to provide documentation of their citizenship status during the screening process, and rejecting those who can not provide such documentation, does not violate the federal Fair Housing Act, you may not selectively ask for immigration information—that is, you must ask all prospective tenants, not just those you suspect to be in the country illegally. Reference: http://www.nolo.com/legal-encyclopedia/how-screen-...

4. From how I understand it, you can say no as long as you do not discriminate. Not being able to afford the house is not discriminating, not renting to them because they are handicap and you fear that if they lose their job, it will be difficult for them to find a new job is discriminating. There is a fine line.

4. So, you can say no, you just can't say no because you are discriminating. If they fail standards, such as criminal activity or bad eviction history, you do not have to rent to them.

5. Correct.

6. I charge them a fee because the tenant screening website charges me. Also, make sure you put a statement in your application that states you will check their credit.

Hope that helps.