6 Steps to select a good tenant for your lease
Having a good tenant is like picking a multi-bagger stock in the stock market. It not only gives you good returns in the short term but also gives you great returns in the long term. Good tenant Makes property manager's life easier. Some of the attributes of a good talent include timely payment of the rent, taking care of the property, having a good rapport with the manager, and having a clear communication channel with them. Therefore, if a property manager wants to have a good tenant, they need to screen them from the rest while the potential tenants apply for the lease agreement. There are A lot of procedures that a property manager can follow. We have provided you with the best steps according to us that you should apply by screening the tenants:
- Accepting the tenant's Application
The first step of screening the potential tenants. You can easily make the low rental application either by contacting your local real estate Association or you can create your own personalized templates through Property Management Software features. While creating the application you need to keep in mind that it forwards all the aspects that you are looking for in a tenant. Some of the common criteria are listed below:
- Employment records - These include details of the current and previous employers to understand If the tenant has a good relationship in its workplace and also to check if the tenant has changed the job multiple times in the last few years.
- Personal details - Personal detail includes identification details like the new number of people in the family who are going to lease the property and their phone numbers
- Details of the previous landlord - This includes the contact numbers of the previous landlords, the previous rent, and the reasons for leaving the property
- Income proof - Income proof includes the bank account credit cards This will help you to deduce the current amount of money the potential tenant is earning and is it enough to pay the rent of the property that he or she is leasing
- Performing market research on Your Target Areas
After accepting the application and filtering out the suitable application you can run a background check on the potential tenant Using the social security number of the respective tenant provided in the application. Running a background check will provide you a detailed report About the tenant's past. There are a lot of criteria that you can use while running a background check some of the most common criteria are given below
After creating the template, you can add in any database collection software like Google forms and circulated it to your website or on your social media platform to attract and help potential tenants to submit their application
- Criminal records - This will help you understand if the tenant had Committed any crime in the past. You can get the criminal records while contacting the local police station near you
- Legal records - This will help you understand if your tenant was involved in any form of legal battle in the past.
- Eviction Record - This will help you understand if your tenant goes evicted recently ordered in the past and also give you details on why they were evicted.
Analyzing the credit report of the potential tenant is one of the most important does that you should consider after running the background check. The credit report will show you your tenants' previous credit history depending upon the years that you want. Usually, it is preferred for 5 to 10 years. The credit check will help you understand If your tenant has Any loan in their account for, they have maxed out their credit card bills. It also helps you understand the Punctuality of the tenant regarding the payment of the dues.
If the potential tenant's application passes a credit check, then you can move further by contacting the previous landlord of the tenant to understand what was His or her relationship with them. Contacting the previous landlord will give you an idea about How responsible the tenant is and will they follow the rules and regulations of the lease agreement. The type and amount of question that you want to ask depends on you but we have provided some basic question that is usually asked to the previous landlord, below
- Does the tenant owe you any outstanding debt?
- Does the tenant have a history of late payments?
- Has the tenant caused any major damage in the rental unit?
- Did the tenant disrupt the neighbors or cause any major issues while living there?
- Did the tenant quality to receive his or her security deposit when moving out?
- Would you rent an apartment to this tenant in the future?
After contacting the tenant's previous landlord, you can move further by contacting their employer to know if the tenant has a reliable income source. While contacting with employed you need to keep in mind that the company doesn't usually provide the private information of the employees but you can ask common and simple questions like how does the employee Perform in the normal working environment, Is the employee responsible and function regarding the task provided to them, etc. Asking this question will also help you understand the commitment level of the tenant.
After screening the application and filtering them through the above criteria. You should also interview the tenant because learning about the Person Secondary sources is not enough you should also drop with them to understand them on a deeper level and make the decision if they are Eligible Or not Screening the application and choosing out the best one could Consume both time and resources therefore for automating them to software Like property management software would be a better option. Through our software property 360, you can automate these tasks and get more Benefits like adding and subtracting the applicants, creating templates, generating easy-to-read reports, and much more!