Somethings I have learned in last few weeks

[Sharad M.]

Hello all,

It's been busy last 5-6 weeks getting rehab done on couple of my multi-units and getting them rented out. It's been a great learning experience. I just thought I share with the group some of the things I learned. Some of these will be very obvious, some not so much. Hopefully, you guys find some value and can add more to it.

1) Don't assume the pay stubs a tenant provides is real. Always follow up directly with the employer to confirm the employment and salary.

2) Don't assume the employer number a tenant provides is correct. Go to Google and try to find employers direct number.

3) It's been said before in the forums that when you call to check the references of a tenant, don't tell the person you are calling how the tenant is related to them. Let them tell you that. I always say "Hi, Tenant Joe applied for one of my rental properties and put you down as a reference. Can you please tell me how you know Joe?"

4) Don't assume the landlord information is correct. When you call the previous landlord and they confirm that they are the tenant's landlord, ask them if they are the owner or property manager. If they are the property manager, get the owner's name. Once you have the owner's name, go to your county's tax assessor website and confirm that the name of the owner on the tax bill matches with what's on the application. If it doesn't, follow up on that. I have come across a LOT of discrepancies and it's been the case where the tenant had given me name and number of one of their friends.

5) If a tenant is in rush to move into the apartment and they want to give you all the security deposit and first month rent at the first meeting, be careful as that should raise a red flag.

6) When you screen a tenant and the report shows eviction, follow up with the tenant to find out the reason for the eviction. I have come across couple of families that were getting evicted because of a manipulated landlord.

7) If you have a vacant multi unit, it may be a good idea to get one of units completely finished and get someone moved into that unit ASAP, because once any one of the units is occupied, it will prevent from break-ins that happen with a vacant house.

I had couple of other things that I can't remember. If any of you guys have other good ideas to screen tenants, please share here. Hopefully, you guys find some of the things helpful.

Happy Investing!