Tenant Screening Process

[Brenna Wood]

Yall have been so much help with just the beginning process of people coming to see our property. We have turned down one person so far because she didn't qualify.

We bought the BiggerPockets package for lease, application, pet lease, etc. We gave out applications to potential tenants who came yesterday to see the house. There are four people who want to live here under the same lease - one sister, her 5yo son, her brother and her brothers finance. The couple will take the master, the son and mom each will have their separate bedrooms and share a hall bath. I gave them 3 applications for the adults and told them it would be $35 each. We told them what we need them to qualify as tenants - favorable credit history, no records, references from all previous landlords, gross income $4800+ combined (renting for $1600). They said no problem and will get us the applications back this weekend.

I was reading on here to use Smart Move by Trans Union for the credit/background check. Is this all we will need to do besides calling everyone on their references to verify their information?

Also, if they all pass the checks, can we sign the lease now for January 1 with the holding deposit agreement? And how much should it be? I thought it would be the security deposit in full,  but my husband said it should be a refundable amount that's less ~$500. We can't afford to lose a tenant last minute, and I'm going to do this right, but shouldn't we just get the deal done if everything checks out?

That leads to my next question. We pictured a single family living here, but are still okay with this dynamic. If there are going to be 3 adults living here, we will need 3 separate leases signed or one lease with all 3 of their signatures?

And do we have one of them sign the Guaranty agreement? The sister who scheduled the showing and reached out to us said that she would collect the rent in full from her brother and her brothers finance and pay me the full amount of rent $1600 every month. If we need this signed, I would ask her. We are thinking about using Cozy.co for payments.

If you made it this far, thank you :)

[Anthony Wick]

Wait. Is the OP holding a vacant property until January? That can't be. Perhaps she already knows the current tenant will be vacating then, or maybe a rehab won't be ready  until January 1. Let's assume that. 

Now, here is my prescreening, before I send the tenant the email for Smart Move: 

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?

Is continued employment likely?