You want to make sure the people living in your rental home are not going to be a liability for you. Trusting that the people renting from you will take good care of the home, not engage in illegal business or other nefarious acts on your property and will pay rent on time can be difficult. Therefore, screening prospective tenants is so important. There are a few ways that a property manager will screen the people applying to live in your rental home.
Credit History-Most property management software and programs will allow property managers to run a credit check on tenants. A credit check with the 3 major credit bureaus will tell you if the prospective tenant pays their bills on time, has prior judgements against them from landlords, and bankruptcies. The rental application needs to include a photo ID and social security card, proof of address, and signed consent.
Eviction/Tenant History- Making sure to check a tenant’s prior rental history is important. Landlords and property managers can fill out rental verification forms that tell if the tenant had delinquent payment history, citations, lease violations, eviction, or other problems.
Criminal History-Programs like YARDI for property management run a credit and background check. You can also search public records using address history and the information from the rental applicant’s ID. Registered sex offender lists are also available online for free.
Income Verification-Most property management companies recommend that rent is no more than one third of a person’s budget to remain affordable. People who spend only one third of their income on rent are more likely to pay their rent on time. Income verification through paystubs, offer letters, or employment contracts are the norm with rental applications. Property managers should make sure to call previous jobs and current to verify employment.
Tracking down all this information and making a good decision about a prospective tenant can be difficult, especially when you must comply with fair housing laws. Let Scott Properties be the solution to your property management needs.