How to Screen a Tenant

How to Screen A Tenant

For landlords, property managers, or even real estate agents that manage properties, it is of the utmost importance that you conduct thorough tenant screenings. Taking this time upfront can save you an immeasurable amount of time in the future, not to mention thousands of dollars or more in lost revenue and court costs and fees.

The Interview Process

Pre-Screening a prospective tenant can save you the time and money. Your intuition isn’t always enough but it can be extremely insightful. Take the time to talk to an interested party before they apply and ask them some basic questions, such as:

• Why are you moving?
• When do you want to move in?
• Can you meet my income requirements?
• Do you have anyone else who would be living here with you?
• Are you ok with undergoing a criminal, credit and eviction check?
• Do you have any pets?
• Can you provide me with employer and landlord references?

Starting with a reasonably quick interview during the property showing or beforehand can help you determine if you want to spend time and money on the application process and further screening.

The Application Process

If someone views your property and passes your initial interview questions, it is time to move on to the application process. By having a potential renter fill out a formal application, you not only will gain valuable information about the interested party, but you will also have a written record of every interested party.
Take the time to read each application in its entirety. You might be surprised at what people will reveal on their applications. Protect yourself by having a good system for keeping your applications organized with documentation as to why you accepted or rejected applicants.
https://www.mrlandlord.com/rentalapplication/app1.pdf

Contacting References

After you make your way through the application process, be sure to contact references. It is best to ask for both employer and landlord references to ensure you gain a solid understanding of who the person is.
By asking for work numbers for employers, you can help minimize the risk of employer reference fraud. During this stage of screening, it is imperative to perform your due diligence and spend the time needed to verify income and past housing.

Formal Tenant Screening

Finally, after you have completed the initial tenant screening steps, you should run a formal tenant screening report. This report should include a credit report, a criminal background check (in locations where this is legal) and an eviction report. This formal report can help you determine if a renter meets your criteria and will alert you to a history of evictions.

California

Remember, when you are screening tenants, you must follow local and federal Fair Housing Laws. Before you begin creating criteria or interviewing tenants, take the time to fully educate yourself on what information you are allowed to use to determine a renter.

https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_rights_and_obligations
Another good thing to remember is that local cities such as Manhattan Beach and Hermosa Beach have adopted some of their own ordinances regarding rental properties. Stay aware in order to protect yourself.

You may be new or may have been lucky so far and have not been scammed but there are definitely “professional tenants” out there who have learned how to work the system and end up in a property to live there as long as possible without paying rent. There are also those that don’t pay, pay late, disrespect rules, and damage property, etc. So please, do your due diligence. End up with a tenant that is honest, stable, respectful, and clean, with good credit, a steady income, a clean background. Take the time to screen your tenants. It is one of the best investments you will make.

12 Tips to be a Successful Landlord