Tenant Screening Question

[Michael Leo]

Hello,

I'm kind of new to real estate investing and first time posting on bigger pockets! I have been trying to self manage a couple of properties for the last 2 years. Haven't had many issues except I run into things I'm not sure how to handle when looking at prospective tenants. Currently trying to rent a 4 BD/2 BA in Lakewood, OH area.

I have a man and his girlfriend applying with the man's mother. They would also be moving in with his 2 kids. I did a rental application through Zillow Property Manager. The income they reported is enough but the man and his girlfriend both have bad credit (530-545) but the mother has good credit (628). I'm also having trouble figuring out how to confirm rental history because they have been living in their grandmother's house and she passed away recently. She was the rental manager they put down. Just wondering if anyone had any advice on how they might handle this situation? Think I'm going to try to find some other service to at lease find/screen tenants in the future.

Thanks!

[Winter Heintz]

Quote from @Michael Leo:

@Melanie Thomas @Winter Heintz

Thank you both for replying. Very useful information. I definitely have to be better about figuring out what my minimum criteria is and being clear about that up front. I may try to verify their ability to pay by getting more information from them and requiring some of those other things you suggested but it will be hard to verify anything with what I have from them so far.

I will be looking into a leasing only PM and maybe have them take care of more as I am still working a full time job so it's been a little difficult balancing that with trying to take care of getting these units ready and filled. Thanks for all of the help!

 I've been turned onto TurboTenant. If you're looking to handle the property management yourself this has everything you need for free. Marketing, pre-screening, applications, background and credit checks,  online lease and addendums, and payments. I know it can be overwhelming but having those set standards and a good software/ system is worth it. 

I rent in a small town so a lot of my applicants expect it to be an easy : tour, cash for rent and sign the lease. When I show them I have a system (prescreen- tour - application + background and credit check at their cost - deposit to hold - lease signing and the rest of the payments, it deters a lot of the duds and makes me feel like I'm actually filtering out the bad eggs. 

Good luck! Keep learning. Stick with your knowledge and your gut.