Finding a new tenant for a residential property you rent and manage is not always a simple task, especially if you want to ensure your property is taken care of throughout the duration of any new lease agreement that is signed. Knowing what to look for before selecting a tenant for one of your rentals is essential to help prevent problematic issues from arising in the future.
Whenever you are searching for a new tenant to rent your home or apartment unit to, it is imperative to verify the income they claim to make before providing them with a leasing agreement. If an individual is unable to provide proof of their income with a bank statement, 2 paychecks, it is difficult to determine whether or not they are capable of remaining financially responsible when their rent is due to you each month. A tenant credit report can be ordered on the prospective tenant not to verify income, but instead verify they make timely payments on debt and to check their monthly debt range to see if they will be financially able to pay their rent.
Reference Check Problems
If you are unable to speak with references that were provided to you by potential tenants, it is not always a great idea to continue considering the individuals a prospective resident. Reference checks help you to determine the type of character a prospective tenant has, which is why it is so important that you are able to speak with multiple friends and family members who are willing to vouch for anyone who is interested in becoming a potential tenant of yours.
When you are not able to reach a reference of a prospective tenant, ask the individual if they have alternative contact information available to provide. If an individual does not have alternative contact information, this may be a red flag and a surefire sign to avoid allowing him or her to move into your home or apartment unit.
Running a background check and checking the criminal history of any and all applicants who are interested in living in a rental that you own is a must to truly determine whether or not an individual is a potential problem tenant. If an applicant has a history of run-ins with the law or has a criminal past, it is highly advisable to find another prospective tenant, especially if the applicant themselves was not upfront about their past while submitting their information to run a background check. Include a section for potential applicants to inform you of their criminal past in your original application if you want to learn more about prospective residents before running a tenant credit report or tenant screening.
Repeated History of Evictions
If you are able to determine that a prospective tenant has a history of evictions, it is important to inquire to learn more if you are still considering allowing the individual to move into one of your properties. When an individual has a repeated history of evictions, it is best to steer clear to avoid the potential risk of losing out on rent money, causing you to invest more of your own finances in order to maintain your properties over time.
Taking the time to conduct a thorough tenant screening and tenant credit check on your potential future tenants is a way to ensure there are no issues when it comes to receiving your rent money on time throughout the duration of any leasing contract that is in place. When you know what to look for while eliminating potentially problematic tenants, avoid headaches, repair fees, and other eviction-related charges and instead, opt for a tenant that is trustworthy and reliable.