While being an owner, it is evident for you to pick a person, which satiates all your requirements as a tenant. If you are looking for a tenant, this blog will provide the process of screening them. It is essential to cover 6 important points to consider while screening potential tenants and avoid problems later. There are many aspects involved while you screen a tenant like a background check, financial check, etc. Keeping a prior check on candidates will elude hassles and help you build a better-longer relationship with your tenant.
What Is Tenant Screening?
In simple terms, tenant screening is a process to evaluate potential tenants. The purpose of the process is to assess potential tenants and if they can fulfill the rental agreement terms.
Mandatory Points to Consider While Screening Your Tenant –
There are a bunch of mandatory points you should consider checking with your tenant before letting them in.
Confirming Income Source
Verifying the income will help you reassure that the tenant can afford the rent. It will also help you know if the tenant has a stable job. There is a mandatory income guideline that you can follow to check eligibility of the tenant. You can employ the three-time rule where if a tenant’s income is three times the rent. If the tenant satisfies the requisites then he/she stands to eligible in specific criteria.
Checking Previous Addresses and Employment References
If the potential candidate was a renter, then you must verify their previous addresses and also talk to the landlords. You would want to know their behavior, if they paid rent timely, etc. Having a conversation with the former landlord/s will help you understand better.
As verifying the income is important, confirming its source is essential too. Checking the potential candidate’s designation, salary, his/her tenure in the company will help you understand the stability of the job.
Detailed Credit History
A detailed credit history of the prospect allows you to assess the applicant’s debts (if any). If you want a background check for a prospect, you must abide by the Fair Credit Reporting Act (FCRA). Landlords must have accreditation from Credit Reporting Agencies (CRAs). This doesn’t only apply to landlords or even companies have to comply with CRA to ensure that the inquirer is genuine. The intent behind the process is to be assured that the inquirer is genuine and the extracted credit data/reports are in safe hands.
In addition to the rest, you can also check with the renter’s former landlords and local housing court records to see if the renter has any past evictions. If there were any evictions additionally, check for the reasons of damage if they were caused formerly by the renter.
A Criminal History Check
While screening prospects checking both monetary and criminal backgrounds is essential. We know what aspects require a financial check, but what about criminal background checks? You can check with the state and federal criminal records to ensure if the potential candidate has a criminal history. Always check for sex offender registries and terrorist watchlist as they are a part criminal offense. Check for correct spellings of the renter while enquiring as you wouldn’t want to be the cause of any upcoming problems.
Once you have all the documents in place, you can proceed with the next process, which is interviewing the tenant. While interviewing, asking questions like the reason for moving, how many people will be living with you? Do you have any pets? etc. If you find anything dodgy while interviewing, you can interrogate further and be assured there are no stones left unturned.
Questions You Must Avoid Asking –
It is also important to maintain decency while you interrogate the tenant, make sure you in no way hurt their sentiment by asking personal questions. The Federal Fair Housing Laws stand to protect the tenant’s rights. Interrogating prospects based on their gender, race, national origin, sexual orientation, etc. is inappropriate.
Tenant screening is a tiring process, but it also promises good tenants. It is essential to do a proper background and financial screening, to avoid problems later. Additionally, if you want to Sell Your House Fast For Cash In NY, you can call us on this number 718-977-5462 for more details. Elite Properties is a ‘we buy houses for cash company’, which means we buy house as-is and pay the yields in hard cash.