I am about to do my first tenant app/background any advice?

Question

Hey guys! I am about to have my first renter, what are some do's and don't that you would recommend? Any advice is welcome!

Chinmay J. · Answer

Gross Income about 2.5 to 3 times Rent verifiable with Paystubs or past 2 yrs or tax returns if self employed.

No Evictions in past 7 yrs.

No Criminal Record

Good Landlord References.

Credit Score over 600

Completely filled application.

Willingness to provide security deposit.  I usually charge 1 full month's rent.  By law I can charge up to 2 month's rent in VA. You need to know laws specific to your state.

I would highly advise using software like SmartMove, which pretty much does most of it for you, and gives you a renter score.

Dave Lawrence · Answer

Here's the screening matrix my PM in Charleston SC posts on their website. Among other things, it does a great job with expectation management from the git-go with prospective tenants. This holistic screening has really improved the quality of tenants they've put in my properties, and has also helped reduce turnover dramatically

John Semanchuk · Answer

These days I ask for first month, last month and  security dep up front (3x the rent) and I've not had a tenant skip out on the lease since I started that policy.   It does eliminate a lot of tenants but I still get my places rented and they're usually good tenants.   Occasionally, I'll let a tenant I really like pay that last month's rent over the course of the first 3 months or so.

Katie Stewart · Answer

Screen screen screen!! I would highly recommend establishing a set rental criteria for applicants and don't budge from it.

Anthony Wick · Answer

My process.....

Q&A On Tenant Screening:

For Tenant, prior to scheduled showing:

• 1.What is your preferred move in date?
• 2.What is your monthly salary? We require 3 times monthly rent.
• 3.Have you ever been evicted?
• 4.Have you been convicted of a felony?
• 5.Who would live here?
• 6.We don’t allow pets, do you have any?
• 7.If you like the property, are you willing to fill out an application for a credit, criminal, and eviction history report? It is at a cost of $40.

For Tenant, if they are interested in signing a lease:

• 1.Fill out preliminary application.
• 2.Verify application for 3 times monthly rent income, pay stubs, no felony, no evictions, at least 1 year on job.
• 3.Query all adult names in state Courts Online system.
• 4.Query Facebook.
• 5.Query County Assessor page for properties in their name (foreclosure?)
• 6.Contact last two prior landlords.
• 7.If applicant passes preliminary screening, send online application ($40 fee). MySmartMove.com from BP.
• 8.Review screening for 600+ credit score, on time payments, income, eviction and criminal history. View what types of debt and how much.

For Prior Landlord(s):

• 1.How long were they tenants at address?
• 2.Did they always pay rent on time?
• 3.Is there a copy of the rent records to obtain?
• 4.Did they, or is it anticipated, that they will get their full damage deposit back?
• 5.Did tenant give notice to vacate, or are they breaking their lease?
• 6.Would you rent to them again?

For Employers:

• 1.Do they currently work for you?
• 2.What is their position?
• 3.How long have they worked for you?
• 4.What is their current salary?
• 5.Is continued employment likely?

Shannon Slade · Answer

I highly recommend using a 3rd party for background screening and credit checks. We use Cozy.co for rent collection and screenings.  Free of charge for both parties unless tenant pays with a credit/debit card, link a checking account and all is FREE.

Income must be 3x monthly rent

No evictions

No pedophiles

Dont assume that if you follow all these suggestions that you will have the best tenant, people suck and in the end you may be forced to remove them from the house.

Good Luck

Eric Jacobs · Answer

Use a third party service. The last thing you want is liability related to the use, misuse or theft of confidential data.  Dont’ let this get overly complicated.  AT the same time, if the Tenant doesn’t clear don’t even consider taking them.  Good luck

Jimmy Lee · Answer

First, Congratulations!!!!!

Second, like everyone else has stated, screen your tenants.  Late payments, evictions, bad credit score are all indicators.  Also, make sure you do a background check, not only for knowing who is in your house, but also for the neighbors in the community.

This might be just an issue I've run into more so than others, but my next lease agreement is going to have a "lease break penalty".  Something to consider!  (Totally understand that this is not so much as background check, but...)

I use cozy.co to collect rent and screen tenants.  The reports are good enough to understand who the tenant is, in my opinion.  Full disclosure, I've used property managers in the past so I have nothing to base it on.

Derek Janssen · Answer

smartmoves.com

Sends tenant email, they log in, enter all their info and it sends you a report.  Tenant pays $35 application fee.

Credit score of 550-599 = 51% delinquency rate, 500-549 score = 71% delinquency rate (Ref: Landlording by Leigh Robinson).  There's always extenuating circumstances - divorce, short sales, etc.

I am about to do my first tenant app/background any advice?

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