Tenant Screening - How The Process Works Step-By-Step
If you're a landlord, you should know that the tenant screening process is the most important work that you do. It's estimated that very close to 100% of renting problems are prevented by thoroughly screening tenants. This is the process where you gather information about them before anything is signed or any agreements made.
The Purpose Of Tenant Screening
The main purpose of tenant screening is to make the process of choosing a potential tenant easier. You'll usually have a number of applicants and by checking out each one, you can make an informed decision.Another purpose is to weed out tenants who may cause you trouble. It's important to be realistic; there are lots of people that you'd never want to rent to. If the tenant screening process is done effectively, you can identify these individuals before you lease a property to them, and this will save you lots of trouble and expense later.
The Phone Interview
The first step is the informal phone interview. This is usually when a tenant calls up inquiring about a property. You might want to print out forms or cards to use for the interview to make it easier for yourself.Although each landlord has their own set of questions, here are the basic things you should ask:
- Contact information including name, phone number and current address.
- Number of people moving and their relationship to you.
- Reason for moving out of current residence.
- Intended length of rental including the date they'd like to move in.
- Do they smoke?
- Do they have pets?
- What is their current job status?
It's also important at this early phase to give them all the specifics on the rent, including the amount, when it's due, and any information about deposits or related policies.
Although this is a detail that can be sorted later, you may also want to ask them for a landlord reference. It's not important to obtain the information at this stage; you should simply ask them whether or not they can provide references to past landlords.
Showing The Property
The next step is to show them the property. Although the main purpose here is for them to see if they like it, this is also an opportunity for you to screen them in person. You can assess their appearance and general attitude. Sometimes these can give you clues as to a person's future behavior.You should answer any questions that they have about the property. Most will have at least a few. If you find them criticizing the place, this could mean that their trying to negotiate a better price. Be honest about the shortcomings but don't feel like you have to negotiate with them.
At this stage, give them the rental application form and ask them to turn it in as soon as possible because there are other applicants.
Credit Check And Background Screening
Finally, perform a credit check and background screening. Criminal checks are becoming increasingly common, but make sure that you do yours through a legitimate agency and not through a free website. Free sites often don't contain complete and up-to-date information.Tenant screening is all about paying close attention to the potential renter and looking for warning signs that they might be difficult. Check out their references and perform an online background check - but also go with your instincts. If your gut feeling is trying to tell you something, listen to it.