10 Steps To Effectively Screen Your Rental Application

Dec 11, 2017

 

Today, our property managers wanted to discuss 10 steps to effectively screen your application with minimal issues and find the best applicant.   There are no fool proof ways to screen tenants, but these steps are the basis for a solid tenant screening program and help improve the chances of accepting tenants who will not cause issues and pay rent.  Update: Check with your local jurisdiction as some areas restrict certain information being used in a tenant screening.

 

 

1) Have prospective tenants fill out a written or online application – Realtors and property managers have access to forms that applicants fill out in a written manner and these are usually tailored to what is allowed to be asked in a tenant screening. It is easier for landlords, realtors, or property managers to detect inconsistencies and issues when reviewing a written application with supporting documents.

 

 

2) Clear Eligibility Requirements -Realtors, landlords, and property managers should have clearly written guidelines on what you are looking for a tenant.  Realtors and property managers should be aware that this is the law in the state of Texas .

 

 

3) Review Criminal Convictions – HUD states that landlords, real estate agents, or property managers cannot deny based on arrest records, but that they can evaluate convictions. This is due to  rules that state the arrest records create a “disparate impact” that proponents argue violate the equal protection clause. Therefore, our property managers should have ways to review criminal convictions not just arrest when evaluating a tenants application for our homes.

 

 

4) Review judgements for evictions, bankruptcy, foreclosures – Credit scores can be skewed by using legal measures or techniques to minimize impacts, so it may not always providing a landlord or a property manager the full picture of the applicant.  Reviewing the applicant's judgements may give insight into major issues like evictions, bankruptcy filing, etc. that can help a property management evaluate if the tenant does have a good track record of meeting their obligations. Property managers should have in their written criteria an idea of how many years that they want of good rental history, so applicants can understand if they are a fit for the property or will they be denied.

 

 

5) Try to interview current and past landlords-  Property management firms and landlords should try to reach out to both current landlords but also the prior landlord as well. Landlords or other property management firms are usually willing to fill out a standard screening type form or questions (how long did the tenant live at the property, how much was the rent, etc.) . Ashoka Lion will also attempt to reach out to the prior landlord to try and determine a tenant's rental history.  A past landlord has no incentive to get rid of tenant who maybe behind or not complying with the rules of their lease. 

 

 

6) Try to obtain copy of current lease-  There are times when a current landlord is unvailable. If a landlord or property manager can get a copy of the current lease, then you can review information provided on the lease application against the lease .    Hopefully, landlords or property managers can confirm lease terms, rent, and owner contact information to match to what was provided in application.

 

 

7) Scan credit reports for issues on the report – If you are given permission to pull credit reports like a property manager or realtor can, then the property manager can scan the credit report to see if there are any balance or collections from places that look like apartment complexes.  These balances are amounts that are charged against a tenant due to damages, unpaid rents,  or broken lease issues. Property managers can also see in reports that there are other report addresses to confirm addresses provided by applicants.

 

8) Request copies of paycheck stubs – obtaining a few paychecks (our property managers request 2 months) to help you identify if pay fluctuates or is it steady. It also allows land lords and management companies to verify employment information provided in the application.

 

9) Obtain pictures and records of animals-  Do you accept pit bulls? Many owners will say no, but they may not realize that a more formal name for a pit bull is “staffordshire terrier”.  By obtaining pictures and records, property managers and landlords can better understand what kind of animals a tenant may have with them. Update:  Property managers and landlords need to be careful to understand distinctions between "Pets" versus "Service Animals".

 

 

10) Run applications on everyone over 18 years of age – If you have adults living in a home, landlords or property managers should know their criminal background and potentially rental history. What if a applicant who would be a occupant destroyed a previous residence? Without screening all adults that will live at the home, then you expose yourself to same risk of putting in bad occupants that could create issues for your rental property or the general community that the home resides.

 

Share this post

Share by: