3 Things To Look At To Help You Qualify Your Next Rental Tenant
Posted on: 7 April 2018
As a landlord of your rental home, your goal is to keep it rented to qualified and responsible renters who will pay on time and take care of your investment. The last thing you want to do is get a renter into your property with a year lease and have them destroy the interior and exterior of your home while costing you money to pay legal services to evict them after they stop paying their rent. To help you make the best choice in a tenant for your rental, here are some items to look at to help you qualify them as your next renter.
Background Check
An important part of qualifying a renter is to complete a background check based on the information they provide on the rental application they complete with you. As part of the qualification process, it is acceptable to charge an applicant a fee to process their application. This fee covers the cost of a background check, which you can order online through one of several landlord and rental websites that offer criminal background check solutions.
An applicant's background check will tell you any criminal history and arrest they have on their record. This can include a warrant out for their arrest, unpaid parking tickets, or a felony record due to criminal activity. Use this information to help you make a decision to approve or decline their credit application. Then, call their last two rental references and talk to past landlords to help you get a good idea of the type of renter they are and will be for you.
Credit Check
A credit check should also be a part of making a decision to allow someone to live in your rental unit. You can request a copy of an applicant's credit report online and with a landlord service website for a fee. Make sure your rental application includes the applicant's signature and authorization for you to request their credit report.
Look for any unpaid bills and late payments to give you an idea of how responsible they are for making payments, especially on any past housing expenses and rent. If they have been evicted in the past for unpaid rent, it is a high possibility they could do it again and to you.
Verify Income and Employment
Check your applicant's income and employment, which can usually be completed by getting a copy of their last few paycheck stubs. This information will tell you where they work and how much they make each month. As a good rule of thumb, look for their monthly income to be at least three times the rent. This helps to ensure a tenant will have enough money to pay for rent along with their other expenses.
Share