Tenant screening is considered as one of the most vital parts in property or house rental business because it is the process where you can determine if your prospective tenant really has the capability of paying rental fees and could comply to your lease or rental agreement. This will also be the defining point if your tenant’s application will be approved or not. According to the latest survey, 30% of the approved tenants ended up being stressed or problematic because they can’t afford to pay the monthly fees anymore, leading them to get evicted by their landlords.
If you are a property manager or a landlord, it is your responsibility to conduct an extensive assessment to your applicants before approving their applications for you to avoid damaging your business. Starting questions such as “are you employed?”, “how much do you earn per month/quarter?” and “how many of you will live in this apartment/property?” are some of the most common yet will serve as your foundation in screening your tenants. And because it is business, money matters the most. So make sure your applicant has enough income to cover the expense for the rent. Make sure that your decisions will not based on emotional but on financial and rational thinking. Denying applications for good is better rather than approving them only to ’cause troubles to your business.
In order to target and find your real clients, setting important criteria will give you a good chance of getting tenants with unquestionable backgrounds. You should look for some important points like employment stability, rental history, credit history, attitude and behavior of a tenant, the capability to pay on time, how they take care of a property, monthly income, and so on. This process will take time, but will give you an assurance of keeping your business running on the right track. Filling a vacant space in your property is quite easy. However, finding a tenant who pays on time, does not distract or annoy neighbors, and has the initiative to keep the property in a good shape can be a tough task. But worth the effort.
Also abiding with the law is a big addition to your arsenal in luring prospective tenants. Some of the tenants especially those who already have rental experience know the law about leasing a property. If you have set a criteria that is below the belt or too much for a normal tenant to be reached, then your possible client would end up finding another landlord. It is important to know their rights, not all yours. For some information about the Fair Housing Laws (just in case you are not aware of it), you may check it out in the internet for you to be aware of your rights as a landlord and your applicant’s rights as well. Most of the time, the quality of a business is defined by it’s application procedure. Make sure you make the best possible application process. Use proper filling forms and do the process in appropriate places like offices, or a decent room where you and your applicants can talk things over in a right manner.
Many landlords or property managers end up selling their properties due to they got wasted by their irresponsible tenants. A vacant space in this kind of business means not only losing your earning at all, it actually leads you to spend more money in preserving it through your insurance, mortgage, and other ways of putting out some bucks just to make sure that the quality of your property remains good. So the only way to cover up those expenses is to find a good, decent, and responsible tenant through fair and in depth tenant screening process.