Learn about the importance of tenant screenings in running a successful rental property
Any landlord or property manager can tell you how difficult it can be to find a good tenant who follows the lease terms and pays rent on time. One way to help ensure you are gaining a quality tenant is to utilize a thorough tenant screening process for every applicant.
Continue reading to learn more about what a tenant screening entails and why it’s so critical as an owner.
What is a tenant screening?
The tenant screening process involves verifying the credibility, trustworthiness, and history of a prospective tenant. Tenant screenings help to determine if a renter is a suitable fit for your property and gauges the likelihood of them following the terms and conditions of their lease agreement.
Tenant screenings can be done by asking for or obtaining (with the permission of the prospective renter) credit reports and public records. Property managers or landlords may also choose to contact the prospective tenant’s former landlord for additional information.
What makes up a tenant screening?
The tenant screening process varies depending on what information you’d like to know. There are several common elements that make up a comprehensive tenant screening to ensure you’re gaining a quality tenant:
- Proof of income: By asking your prospective tenant for proof of income, you will be able to understand if they have a steady source of income that will allow them to pay rent on time, in full. Many landlords or property managers require their tenants to make two and half to three times the monthly rent to help ensure they will be able to make the payments.
- Credit check: Another important financial factor to look at is their credit history. A comprehensive credit check will allow you to assess a prospective tenant’s current financial situation. You will be able to see if they’ve had any problems paying bills in the past, and if they have any loans to be aware of.
- Criminal background: A criminal background check is another factor that will allow you to gain a better understanding of your prospective tenant. A comprehensive background check will help give you peace of mind in knowing that your property and the other residents are safe.
- Eviction history: If a prospective tenant has a history of evictions or lease violations, this can be a sign that they may not be the quality renter you are looking for.
Why is Tenant Screening important?
Tenant screening is an essential step that all landlords and property managers should take before selecting a tenant to live in your rental property.
A thorough tenant screening process allows you to get a clear idea of the financial and rental history of interested parties, so you have an idea of the type of tenant and neighbor they will be. If you own multiple properties within the same building and select a poor tenant, the rest of your residents will suffer, and you will likely end up losing high-quality tenants.
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At Rental Heroes, we are property investors, just like you! We understand what’s most important—a well-managed property that generates a steady, reliable source of income.
Our local knowledge helps us to proudly manage hundreds of units across Central Florida, and we’re committed to doing everything to keep your tenants happy by handling maintenance requests quickly and responding to potential tenant issues.
Our property management services include:
- Tenant screenings
- Marketing and showing your property
- Property maintenance and repair
- Tenant evictions
- Rent collection and remittance
- Property inspections
- Monthly financial statements, and
- Expert advice on how to maximize your return on investment
- Managing relationship with HOAs
- Preparing rental units for new tenants.
Ready to choose the right partner in property management?
Contact us today to get started!