The success of an apartment business greatly depends on the type of tenants it accepts. As a landlord, you can’t simply allow anyone to rent your property. You need to set qualifications to prevent missed or delayed payments, conflicts, and inappropriate behaviors at the property. To properly qualify tenants, you need a thorough screening process. This is an important step to determining a person’s background, rental history, and financial capability.
There are important steps to remember during the screening process.
Creating a detailed application form is essential to obtaining all the information you need about the tenant. You may want to gain details about their current and previous employers, income rate, bank account and credit card information, personal references, and their previous landlords’ contact numbers.
You should also indicate in the form that potential renters must agree to criminal history checks, credit history checks, background checks and providing previous landlord references. By doing this, you gain their authorization to do so. If you don’t know how to craft a good application form, a Torrance property management company can help you.
Credit and Background Check
When doing a credit check, look into the tenant’s credit history and current debt. See if they have a history of late payments, bankruptcy, or other financial problems over the last 7 to 10 years. Their current debt status can also tell you whether they have hefty loans and unsettled balances that could affect their ability to pay monthly rent.
A background check, moreover, will give you an idea about the tenant’s past in terms of employment and living situation. You can obtain important information about their criminal and public records or whether they have been evicted before.
Taking this pertinent data into consideration will help you determine whether potential tenants will fulfill their obligations in accordance to the rental agreement.
Avoid accepting a potential tenant without interviewing the person. This process is essential to know more about them and gain a feel for their personality and integrity. Ask about their lifestyle, work schedule, pets (if any), and family or relatives that may be spending nights at the apartment.
Following these tips will help you screen potential tenants thoroughly. If you don’t have time to do all these because of other important tasks, you can always call an expert in property management in Torrance, CA for assistance.
Ten Tips for Screening Potential Tenants of Your Rental Property, allbusiness.com
How to Screen Potential Tenants – Questions, Credit & Background Check, moneycrashers.com