How To Screen Rent Out Property & Screen Tenants

Question

I just listed the bottom unit in the duplex that my wife and I just bought and I have a lot of questions about how to rent it out. I’m hoping some more experienced landlords can help me understand how this process is supposed to run from start to finish:

• 1.When someone calls me, I tell them the price and a little about the house, and they’re interested in seeing it, do I have them fill anything out or do we just schedule a time for them to see it?
• 2.After they look at it and they are interested, is that when I give them a rental application?
• a.Should I give them a paper version or email them a copy? Should I offer both options?
• 3.At what point do I check credit and background? Do I need their authorization to do so? At what point and how do I get this authorization?
• 4.How do I check credit and background? Over the months leading up to this, the resources I’ve saved are:
• https://www.residentresearch.com/
• https://biggerpockets.mysmartmove.com/
• http://renterinc.com/
• http://renterinc.com/
• 5.How do I charge for a credit and background check (check, etc.)? How much should I charge?

I’ll have more questions once I find a tenant, but that does it for now. Thank you!

Account Closed · Answer

Hi Art,

Congrats on your first rental! Here are a  few pointers to help you with this phase of marketing.

• Develop rental criteria, so you can email it or review it on the phone with prospective tenants. You don't want to waste time showing the property to people who don't meet your minimum standards. It is good to include your criteria in your marketing listings too, as it pre-screens potential tenants. 
• Common rental Criteria: Income of at least 3x the monthly rent (last 3 pay stubs as proof), no previous evictions, no open BK, No Felonies, employment history and rental verification. 
• If they are pre-qualified you can show them the place. 
• If interested, I would use the online screening provider of your choice to do a credit/background check on anyone over 18 who will be an occupant.

If you need additioanlhelp, don't hesitate to reach out with any specific questions you have.

Adrian Mata · Answer

1. ...Most people might ask some very general questions like "How much do you make?" and "Where do you work?" during the initial conversation so you don't feel like you're wasting your time. They might have them come to some type of office to make a copy of an ID or something like that for safety purposes for a female leasing agent but other than that....just schedule a time. They won't fill anything out for them to see it unless it's a very general questionnaire that covers those general questions. How can they really be interested enough to pay if they haven't seen it?

2. Yes after they are interested this is when you'd start some type of application process. I recommend just asking up front....any evictions? ....anything going to come up on this credit check? ....how long have you worked there?....how much do you make?....It's going to save them money and you time if they let you know about any red flags from the beginning

3. I used to look into being super flexible and trying for both options but now the only people I'd go out of my way for to get a paper copy would be people that clearly aren't capable of taking care of it online.....older people that can't use a computer. I use Mysmartmove.com. Yes you'll need their authorization to check their credit. Paper applications typically come with a small paragraph where they sign saying it's ok. Just go to Office Depot/Office Max...I think they'd probably have an application in their premade forms section. Then you're going to have to figure out the association that landlords use in your area to do paper apps. I recommend Mysmartmove.com ...it will remove a lot of the moving around.

4. Mysmartmove will send you an email with their recommendation and any red flags on their credit and criminal history.

5. I just charge them a $35 application fee. That's the price that the site will charge anybody to run it. They can give me cash or they can pay online. If they give me cash then I'll just pay for it using my debit card on mysmartmove. I'm not trying to make money off of application fees.

Brandon Turner · Answer

Hey @Art Maydan- here's a couple resources that should help!

https://www.biggerpockets.com/renewsblog/2013/01/0...

https://www.biggerpockets.com/tenantscreening

That should answer a lot of the questions. Also - be sure to check out www.biggerpockets.com/rentalbook - especially the yellow "Managing" book.

Rick S. · Answer

@Art Maydan in regards to your questions I would suggest:

2. You could email them the application before they see the place so they can complete it before they arrive.  Or you provide that at the showing only if they are interested.

2a. If you have an online application or electronic version I would offer those in addition to paper.  I would recommend you have a clause in your application stating that they authorize you to conduct a background check, verify employment, etc. though.

3. Only after you review their application do you request a background check as you want to ensure they meet your criteria before they proceed with the background check.

4. For the background check a number of those services allow the tenant to verify their identity online and pay for the screening costs directly to the provider so that would save you the trouble of collecting an application fee.

Hope that helps as that is the process I recommend but may be different from other people here on BP.  Thanks!

How To Screen Rent Out Property & Screen Tenants

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