Screening new tenants?

Question

I am about to have my first rental property. What are some of the tools/tips to screen for quality new tenants? Also on one of the bigger pocket episode, I heard a discussion regarding an app that allows for marketing rental properties to multiple sites. Does anyone remember this app?

Andrea Collatz · Answer

Hi Account Closed

I’m a representative with TransUnion SmartMove. SmartMove’s consumer reports contain credit and public record information on consumers that is updated regularly from thousands of sources of data.  Although update frequencies vary, many sources update on a daily or weekly basis and we update our information as soon as we are provided with new data.  Our goal is to provide our customers with accurate reports based on the highest quality of data sources available to us. If you have any questions about our service feel free to send me a note or an email. Thanks!

Zach F. · Answer

If you use Zillow, they will push it out to multiple sites. Postlets used to do this for you and post to about 10 sites at once, but I'm pretty sure Zillow bought them out and now only push to a certain number of sites. Zillow and HotPads should be your best bets however. So using the Zillow feature for listing along with Craigslist will be your best bets.

John Thedford · Answer

I would hire a company to run background and credit checks. Keep in mind the rules have changed and you cannot arbitrarily deny people with a criminal history. Google HUD guidelines for criminal history for that information. As a new landlord, no doubt you are anxious to get a tenant in and start that monthly income! Yea! However, get the wrong one, and things can go sideways fast. First: google your state statutes to make sure you know and understand the rules. Print them out if needed, read through them a couple of times, and maybe highlight the important issues such as security deposits, legal notices, etc. Next: write up a tenant qualification sheet. List what is important to you and hand this out to every prospective tenant. You might want to consider items such as: minimum credit score, eviction history, pets, smoking, criminal history, and employment. I also put deposit requirements as well as minimum income requirements. I required 3x the monthly rent as monthly income and a minimum of 1.5x the rent as security deposit. I also note that applicants with evictions will not be considered. I also state smokers are not considered. I also state pets are on a case by case basis. I hand these sheets out along with an application. I charge $75 application fee. If multiple people apply, I get a check for $75 from each one. After the showing, I go through the apps, try to determine who I prefer (it could be due to income, length of time on the job, pets, etc). I call that applicant and tell them I would like to stop by. That allows me inside their home to see how they take care of things. If it is neat and clean, I tell them congrats, that I have chosen them, and that I will be depositing their check and running their application. If they pass and are approved, I mail the other application fee checks back to the applicants I did not run. Make SURE you are familiar with fair housing laws and don't forget FRSHCRN.

Thomas S. · Answer

Once you establish your screening standards in order to protect your business you must choose the most qualified applicant from all applications received. Never select tenants out of fear. The reminder of "fair housing laws" is a very common theme which many landlords interpret as them having to choose a applicant because they are "protected". This is a major misunderstand many landlords have that is simply not true. Many landlords have paid dearly for that mistake.

Screen every applicant by the same standards and select the most qualified not the one you are afraid to reject. If you hire someone to screen for you make sure you insist on having the final say, trust no one.

The source of fear is ignorance.

Brad Russo · Answer

The first thing you need is a quality rental application. Through application you can verify tenants income. Ideally, you will want to find a tenant whose monthly income is at least three times the monthly rent. Then run a credit check. See if renters have a history of paying their bills on time. The background check should be performed as well.  It will give you a detailed report of the tenant’s past, that includes eviction history, criminal history and various public records.

Check renters references. This includes calling their past two landlords, their employer, and their personal references. Ask their previous landlord if there was any damage caused during the tenancy beyond normal wear and tear. Inquire whether the renter was a good communicator or not, cause you will need to communicate with them concerning property maintenance.

Conduct an interview. Invite each prospective tenant to an in-person interview. Ask questions about why the tenant wants to move, why they chose your property and why they want to move in. More detailed list of questions you can find here https://rentberry.com/blog/potential-tenant-interv...

And remember you should screen all applicants using the same, consistent methods. Otherwise, you will violate  fair housing laws.

David Stone · Answer

Hey, I wrote this as I was doing my last tenant screening process on 2 of my vacant properties... https://www.biggerpockets.com/blogs/7983/52274-wha....  Hope it helps!  There's probably tons of useful info out there but this is what has worked for me.  Good luck!  Educate yourself with multiple resources and put into practice what works for you.

Screening new tenants?

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