The secret to becoming a successful landlord in Fayetteville lies in having an effective tenant screening process. It will ensure you only rent out your property to high-quality tenants, helping you minimize stress and maximize your return on investment (ROI).
As a savvy landlord, it’s important to have a foolproof tenant screening process that examines prospective tenants on all fronts. In this blog, we’ll go through everything you need to know about effective tenant screening.
Know What Kind of Tenant You’re Looking For
Start by listing the attributes that you’re looking for in a prospective tenant. This will help you know what your screening process should cover.
For example, a quality tenant is one that possesses the following attributes
- Makes enough income to afford monthly rent payments.
- Is able to hold down a job for a reasonable period of time.
- Has a good rental background.
- Has a clean criminal record.
- Is responsible, timely, and reliable.
Once you’ve figured out what you want in a tenant, you can continue to the next steps of the process.
Start the Pre-screening Process Early
After a successful advertising campaign, prospective tenants will start reaching out to you. They may have questions about the property, or will want to view the home in person. Use these opportunities to find out more about the prospective tenant.
Ask them if they currently rent, how long they have lived there, and why they’re looking to move now. Be on the lookout for red flags like a history of moving frequently. It’s best to find tenants who plan on staying long-term.
Figure out if they have any pets. If so, ask them how many and what kind. If their pet doesn’t fit your pet policy, you may want to move on to the next applicant.
The goal of pre-screening tenants is to catch red flags early, saving you time down the road. Unqualified tenants will usually disqualify themselves early on in the process. They might, for instance, stop replying once you tell them your requirements. This will save you enormous time, allowing you to only focus on desirable tenants.
Require Every Prospective Tenant to Fill Out a Rental Application Form
Once you’re done with the pre-screening process and have a list of potential quality tenants, require everyone to fill out a rental application form. Make sure to collect important information, such as their:
- Personal information, including their name, date of birth, driver’s license number, employment information, and social security number.
- Rental history, including their reason for leaving, length of stay at previous properties, and prior landlords’ contact information.
- Income level and employment status, including their monthly income and the employer’s contact information.
- Criminal history, which requires the potential tenant to say whether they have a prior conviction record or not.
- Authorization to conduct credit and background checks.
It’s recommended to also ask the tenant whether they smoke or have any pets. Once you have gathered all the relevant information, you can begin the verification process.
Verify the Applicant’s Income and Employment Status
Verify whether the details the prospect provided match those you get from your research. Get in touch with their current employer through the contacts provided to see whether the story remains consistent. You can ask them the following questions:
- Is the applicant currently employed with your company?
- What title and position does the applicant hold in your company?
- How long has the applicant been working for the company?
- How much income does the applicant make?
- Is the applicant reliable?
If the information you get doesn’t match what the prospective tenant gave you, the reference might not be legitimate. If you have any doubts, consider asking for additional information or moving on to the next applicant.
Call Current and Prior Landlords
You’ll want to have as much information about the prospective tenant as possible. That’s why getting in touch with their current and prior landlords is crucial. The following are some of the questions you’ll want to ask current and prior landlords:
- Can you confirm that the applicant rented from you?
- How long did they rent from you?
- What was the monthly rent?
- Did the tenant pay rent on time?
- Did the tenant cause damage to the property?
- Why did the tenant leave?
- Would you rent to them again? If not, why?
Check for consistency between landlords. If everything seems in order, you can proceed with the tenant screening process.
Conduct a Background Check
Before welcoming someone into your rental property, it’s crucial to conduct a background check. You’ll want to look into the tenant’s credit score and criminal history, and find out if they’ve had any prior evictions or sexual offenses.
Choose a reliable applicant with an appropriate credit score and rental history, and build a respectful relationship with them. If they’re a good fit and they enjoy their stay in your property, they’re likely to stay on as long-term tenants.
Conclusion
Thoroughly screening tenants is a standard practice among savvy landlords. Just make sure to remain consistent and fair with prospective tenants throughout the entire process.
If you’re looking for expert help managing your Arkansas rental property, look no further than Keyrenter Arkansas. Get in touch to learn more!