Tenant Screening - The Process - How Does A Landlord Go About Screening For The Right Tenant?
The Basics
* All applicants over eighteen should fill out and sign and date an application
* All applicants should provide current photo ID such as a drivers license
* Spouses should be considered as separate applicants for the rental process
* Be aware of fair housing and local discrimination laws. Do not write on the application or make any notes that could be interpreted as code words or marks used to differentiate protected classes.
* Time and date stamp all applications. Process them in the time/date order received to remain objective.
* Be sure that it is signed, that is where your permission to run a credit check and to check into backgrounds is given by the applicant.
* Have the application signed in your presence. Verify the signature against a drivers license.
* Use the same screening criteria for everyone
* Don’t accept incomplete applications
Verification
* Check the application signature against the photo ID
* Do a credit check and we suggest you buy the FICO score, the eviction report and the social security check. Any discrepancies or negative reports here are a red flag. Remember, you will have to deal with this person for a long time. OFAC or screening for terrorists is now mandatory.
* If you are renting a commercial space you may want to consider a business to business report as well as a credit report on the owners.
* Many applicants do not have a social security number or credit history. It will be difficult to get a credit report without this and you may have a legitimate reason to reject this applicant with no reflection on the character of the applicant, if you require credit reports of all applicants. You may also try to solve this problem by asking for an in-state guarantor.
* Always be aware of Fair Housing laws as well as your state and local laws.
* Consistency in applying your rules is key to staying within guidelines.
* Verify employment income using pay stubs and prior tenancy with landlords
* Use the tenant screening checklist available at www.yourpropertypath.com
Approval or Rejection
If the applicant(s) are approved you can notify them by phone or letter. Be sure to confirm the rent, the move in date and the security deposit.
Set up a lease signing appointment and be sure to give yourself enough time to go over the house rules and discuss any issues that may require written addendums prior to the signing. After a properly signed lease is complete, security deposit and first months rent is paid you may give the keys to the new tenants. Use the lease signing to get to establish a friendly relationship with clear expectations of the responsibility and the obligations of the owner/ manager and the new tenants.