Finding Tenants During COVID-19

[Justin Adams]

Hello,  my wife and I just closed on our first duplex in Minnesota.  I was wondering what I should put for screening requirements during COVID-19.

Tentative Tenant Screening Requirements:

• Healthy credit history
• Income 3x greater than rent
• Last two paystubs & proof of employment
  
• Clean background check
• Clean eviction history
• Positive reference check

And suggestions are greatly appreciated! 

Thank you!

[Cameron Tope]

Justin,

Congrats on the duplex! 

You're already ahead of most investors since you're putting together screening criteria. Your criteria will develop and improve over time so don't worry about getting it 100% perfect the first time (it's impossible). 

However, you want to make your criteria as clear as possible - instead of saying "healthy credit history" you can say "minimum 600 credit score", instead of "clean background check" you can say "no felonies", etc. 

Think about the kind of people that you want renting from your property, then create a minimum standard (your screening criteria) they need to meet. Be clear in your criteria so there's no room for interpretation that can get you into fair housing issues. 

The market will quickly tell you if your criteria is too stringent, and you'll find out if it's too lax after a few months of dealing with the tenant. 

Congrats again and best of luck!