Having the ability to choose the right tenants turns rental property owners into successful real estate investors. High-quality tenants pay their rent on time, giving you a reliable and steady cash flow. They take care of your property and alert you to maintenance needs. This reduces your long-term repair costs. They are also more likely to renew, reducing your overhead by not having to find a replacement tenant.
Keep these five imperative steps of the pre-screening process in mind when choosing the next tenants for your rental property.
1. Be Clear In The Listing
The first step to screening potential tenants is to do so in the property listing. By including important policies and property rules in the listing, you can avoid people who won’t qualify. You can also set the standard by setting the expectations high.
- Smoking policy
- Pet policy
- Income requirements
- Background requirements
2. Pre-Screening Phone Interviews
Conducting phone interviews is the easiest way to quickly narrow down your applicant pool. Do this before you have applicants fill out a full written application. A 30-minute phone call lets you gauge the applicant’s interest and whether or not they are a good fit. This saves them time not having to fill out an extensive application if it isn’t a good fit. Keep the tone conversational and avoid any topics that could become legally questionable.
3. Have a Written Application Form
Once the phone conversation goes well, you can invite the applicant to fill out a written application. This will go more in-depth and weed out anyone who isn’t serious enough to fill it out. Additionally, require an application fee. This will deter anyone who isn’t serious or isn’t confident that they will meet your requirements. Having a set written form memorializes everything in writing should an issue arise later. It will also help prevent any claims of discrimination.
4. Run a Background Check
Tell applicants upfront that you require a background check as a part of the application process. This check gives you a better and bigger picture of the applicant. You can also use it to compare the accuracy and honesty of the applicant on their application form. Certain crimes may be a red flag that you don’t want them as a tenant.
In addition to a criminal background check, you can also run a credit check. A credit score gives you a snapshot; the report gives you the full picture. You can pull this report from one of the three major credit reporting bureaus, Experian, Equifax, or TransUnion.
5. Follow Up on References
Too many landlords ask for references and never do anything with them. This is a waste of time for the applicant and a lost opportunity for the landlord. An applicant’s references should be employers, landlords, or friends/family. Have a set of questions prepared for the type of reference you are calling.
Not all applicants are honest or upfront. They may claim to have a former landlord reference but instead put down their friend or family member. Instead of calling for a landlord reference, which is what they are expecting, call as a potential tenant looking for a rental. If they are a legitimate landlord reference, this will be a normal call for them, and they won’t skip a beat. If they are an imposter, this type of call will confuse them, and you will know right away that the applicant wasn’t honest.
Have a Property Manager Do the Screening
Having a property manager help you with the imperative steps of the pre-screening process can make it easier to choose the right tenant for your rental property. They will have the necessary forms prepared, can run the background and credit checks, and make any screening calls. Their experience with screening and placing tenants gives you an extra edge. They may see red flags that you wouldn’t know about.
Contact our team of experienced property managers and enjoy a smoother tenant screening and placement process.
