As a landlord, nothing is more stressful than knowing the property you own is vacant without tenants to help you pay your mortgage. Finding the right tenants is no walk in the park. Between tenant background checks, screening, and securing deposits, it's a daunting prospect for any landlord, whether it's your first rodeo or hundredth.
The good news is that America is a large nation of renters (over 34 percent of the population). That makes for a massive tenant pool and plenty of potential to find the right fit for your rental.
But if tenant screening stresses you out and you're looking for smart ways to streamline the process, check out the rest of this blog for more.
Clearly Outline Your Screening Criteria
As a fair but uncompromising landlord, it's up to you to establish clear and legally respectful screening criteria before you begin searching for tenants. Here's what to include in the rental screening process:
- Take a look at a person's income-to-rent ratio - ideally, their gross income should equate to three times the rent. This is a good way to ensure they can comfortably afford to pay rent each month, plus other expenses
- Study their employment history and ask for proof of employment, i.e. paystubs, tax returns, or an employment contract
- Go over their rental history - ask for a list of previous landlords as a reference and contact them for necessary insights
- Always run and background check and credit check
These are some of the top tenant verification tips you can utilize to your advantage to ensure you're renting your home to someone you can trust, who will also pay the rent on time!
Make the Most of Online Screening Tools
One of the best ways to streamline the entire process of screening tenants is by making use of the online tools at your fingertips.
There are numerous online screening tools at your disposal. As a landlord, you should be using these tools to run checks on their credit history, as well as a criminal background check. There are also tools for income verification. Tenants submit their proof of income online, and these tools allow you to quickly review and verify their income status.
It's also important to make use of eviction reporting software. You have online tools at your disposal to assist in researching a potential tenant's rental history, whether they've even been evicted, and why.
Pre-Screen Your Tenants
If there's one step to add to your landlord screening checklist, it's this. Taking the time to pre-screen your tenants can actually save you time and energy when it comes to the real deal.
Pre-screening is about your initial communication with potential tenants. It's super important to craft a detailed rental listing that will help you weed out the tenants you don't want. Essentially, your listing must include all necessary details about your property and the type of tenant you're looking for.
Make sure your listing details the rental cost, and specific tenant qualifications, such as income threshold, pet policies, smoking/non-smoking policies, and more. It's this detail that will help tenants determine whether they should apply for your property, before ever making contact with you.
Looking for Professional Guidance on Tenant Background Checks?
The tenant screening process might seem complicated, but it really comes down to the above key steps. One of the most important is thorough tenant background checks, ensuring you rent out your home to someone you can trust.
If you're a landlord looking for expert guidance on how to find the best tenants, Stinger Home Management is here to lead the way. Our promise to you is that you'll make more income and spend less time managing your investment by letting us take the reigns.
Explore more of what we can offer you as experts in Beaufort property management.
