Back HomeChoosing the Right Tenant for Your Rental Property
Screening your tenants properly is crucial if you want to minimize problems such as delayed rent payments, your property being in poor condition, or extremely rowdy occupants. While there’s no cookie-cutter approach to screening potential tenants, there are different ways to find out if they are the right fit. Here are several ways to screen tenants for your rental property.
Have a Checklist
One of the first few things you need to do before getting right down to the screening process is creating a checklist. This checklist should contain the criteria for potential tenants in your rental property. Although there is no universal criteria and the standards will be up to you, here’s a list you can adjust according to your requirements:
- Stable income to afford the rent
- Pleasing and easy-to-work-with personality
- No criminal offenses
- Does not smoke or own pets (if your rental doesn’t allow smoking and pets)
- Good credit score
By listing the qualities you are looking for in a potential tenant, you’re creating a profile for each of the candidates, making the screening process more organized. It will be easier to separate those who don’t fit the bill and the ones who have the potential to have the key to the rental.
Determine Sources of Income
Tenants with a steady source of income will rarely miss monthly payments. Also, make sure that their salary is at least three times bigger than the rent. If their salary is three times the rent, but still have a car, loan, or other big purchases to pay off, there’s still a chance their income may not be sufficient.
You can also inquire about their employment history to know if they stay in one job for a long time or they frequently change workplaces several times a year. This is an important detail not to be overlooked because they may have trouble paying consistently if they switch jobs often.
Apart from being financially capable, the tenant must be financially responsible. A good way to measure this is through their credit score. Generally, credit scores above 680 are favorable. Check if they pay their bills on time as well as their income to debt ratio.
Find Out the Number of Occupants
As part of property management in College Station and the rest of the state, the landlord can set the maximum number of occupants per rental. The higher the number of occupants, the greater the wear and tear in the property. However, the reason for this is not purely aesthetic. Sewer systems have their own limitations, and can only handle usage from a certain number of occupants.
Noise is also an issue in rentals, and having too many people occupying one unit may be too loud for next-door neighbors. Under the Fair Housing Act, a maximum of two people per bedroom is reasonable. There are exceptions, though. Rentals with a living room or a 500-square foot room are suitable for two or more tenants.
Conduct a Background Check
A background check for criminal offenses is necessary not only to protect your property but also to keep your other tenants safe. Ask for the potential tenant’s valid ID to verify if he or she has criminal records that would make him or her unfit to be a tenant in your property.
Criminal records can reveal a history of violent crimes such as robbery, arson, drug crimes, sexual offenses, and more, which is a big red flag for someone you’ll be entrusting your property with. However, you might want to reconsider those with minor violations such as speeding tickets, but still, proceed with caution.
Ask About Their Rental History
This is applicable for non-first-time renters. Ask why he or she is searching for a new rental or why he or she wants to stay at your property. Common reasons for moving to a different rental are an increase in the current landlord’s rent or needing to move closer to his or her school or workplace.
Verify if this information is true by speaking to at least two of the potential tenant’s previous landlords. Some tenants won’t reveal the real reason why they’re moving out of their current rental, and the real reason may have something to do with them being evicted by their current landlord. Ask about the landlord’s experience with the tenant so you can assess how he or she will be as a tenant in your rental property. For all your Texas property management needs, trust Berkshire Hathaway HomeServices (BHHS) Caliber Realty. Call 979.694.2747 or email [email protected] for inquiries.
