how to screen renters

Question

Hi, I am looking at putting up a house for rent and managing it my self in Indian.

Where is the best place to get rental application forms , rental contract form , and a place I can do background check?

thanks

Nicholas Lohr · Answer

I think everything you just asked for can be found on this page. And you're a Pro so you should have access.

https://www.biggerpockets.com/tools/landlord-resources

I personally use Cozy.co for rent collection and screening and I like them.

Drew Sygit · Answer

This is what we do:

Screening Applicants

Poor screening often results in lost rents, legal & court costs and costly damages.

• Screening of applicants includes the following:Full credit/eviction/criminal checks are done, instead of score-driven reportsVerification of rental history includes validation of actual property owner to avoid fraudVerification of stability of income & employment via YTD paystubs & W-2(s) (analyzed to confirm not fakes)Income is calculated 3 ways to spot stability anomalies: pay period, YTD average and YTD + W-2 average.Debt-to-income analysis (more accurate than traditional 3x rent requirement)Bank statement to see if NSF issues, if deposits support income, prove MoveIn Funds, also analyzed for unusual transactions.Pet screening
• Full credit/eviction/criminal checks are done, instead of score-driven reports
• Verification of rental history includes validation of actual property owner to avoid fraud
• Verification of stability of income & employment via YTD paystubs & W-2(s) (analyzed to confirm not fakes)
• Income is calculated 3 ways to spot stability anomalies: pay period, YTD average and YTD + W-2 average.
• Debt-to-income analysis (more accurate than traditional 3x rent requirement)
• Bank statement to see if NSF issues, if deposits support income, prove MoveIn Funds, also analyzed for unusual transactions.
• Pet screening
• Holding Fee required from approved applicants to make sure they are serious, before your property is marked pending. We will still show your pending property & take backup applications until MoveIn occurs.
• Lease Signings include signing of our annually attorney reviewed, 27+ page lease, completed MoveIn Checklist & Video – all published to your online portal.
• Lease Terms are set to avoid end-dates from October to February whenever possible. This period is the hardest time to find new tenants, so we try to avoid it and minimize the length of your property’s vacancy.

• Full credit/eviction/criminal checks are done, instead of score-driven reports
• Verification of rental history includes validation of actual property owner to avoid fraud
• Verification of stability of income & employment via YTD paystubs & W-2(s) (analyzed to confirm not fakes)
• Income is calculated 3 ways to spot stability anomalies: pay period, YTD average and YTD + W-2 average.
• Debt-to-income analysis (more accurate than traditional 3x rent requirement)
• Bank statement to see if NSF issues, if deposits support income, prove MoveIn Funds, also analyzed for unusual transactions.
• Pet screening

Sharlene Mulchandani · Answer

@Markus Ried If you're just starting out, I suggest looking into a property management software that will help you with the application and tenant screening process. There are several free ones that will help you build and customize your application and you can send these directly to your tenants online, which can be very helpful in our current coronavirus scenario. You should be able to find a lease template from your state's landlord association which you can also send to be digitally signed using these software. As far as background checks are concerned, these will be taken care of by the software too and most of them even let you pick your own screening options (credit, criminal and eviction) depending on your preferences. I hope this helps!

Samantha Decker · Answer

@Markus Ried Hey Markus,First off, good for you for taking the plunge and becoming a landlord -- I wish you great success! Secondly, I love that you are considering tenant screening options!There are a wealth of tenant screening sites available, my favorite is TransUnion SmartMove. You can choose to pay for the screening yourself or pass the cost on to your prospective tenant. Either way, with a site as such you will receive a credit, criminal background, eviction, and Income Insights report and ResidentScore. All materials are FCRA-compliant and easy to read (which is perfect if you're just starting out!)! Also, my favorite part, SmartMove reports are delivered to my inbox in minutes -- so I can make a leasing decision pretty quickly! I hope this helps!Best,Sam Decker

Todd Dexheimer · Answer

This was posted recently in the forums, with a bunch of additional comments. One thing that I would say it to verify your  referrals. I dig in and make sure the landlord referral is the actual owner or property manager of the building. Plenty of times I have received fraudulent applications.

https://www.biggerpockets.com/forums/52/topics/82174-ultimate-guide-to-tenant-screening-and-renting-your-house

Cameron Tope · Answer

Markus,

We use Buildium to manage our properties but it's expensive for just a couple units.

Besides the resources @Nicholas Lohr mentioned, you can check the Indiana real estate commission to see what they have for public use.

If you decide to not use a property management software, then at least use Transunion My Smart Move for tenant screening.

Congrats on becoming a landlord! Best of luck!

how to screen renters

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