Property Manager – Chatsworth
How to Screen a Tenant
The Pareto Principal known as the 80/20 rule dictates that 80 percent of landlording problems will come from 20 percent of tenants. But most of these problems can be eliminated by properly screening tenants. This is done by checking three basic areas: credit history, past tenant behavior and employment history.
The first step is to require all prospective tenants to fill out a written rental application that should include the following basic information:
- Name, social security number, date-of-birth and driver’s license number
- Name of employer, supervisor, income and length of employment
- Current address with landlord’s phone number and previous two addresses
- Any previous evictions, bankruptcy and arrests
- References
Landlords should always charge an application fee because it weeds out most (not all) applicants who are not serious. The application fee will also cover your cost for pulling the tenant’s credit report.
Your application should clearly state that you are going to perform a credit check. The credit report is especially important because it will indicate whether a prospective tenant has a history of paying rent or bills late, has gone through bankruptcy, or has ever been evicted. Many companies will allow you to pull a credit report and credit score on prospective tenants. You don’t want to rent a house or apartment to someone who has trouble paying the bills.
Before choosing tenants, landlords should check with previous landlords and other references. Call their current landlord and ask about their payment history. One problem: Sometimes a current landlord may want to get rid of a bad tenant and they will embellish the tenant’s payment history. A safety net is to also contact the previous landlord.
Landlords should always verify income and employment. Ask for a copy of the two most recent pay stubs. Call their employer to verify information entered on the application. Call their supervisor to verify their employment history, income, and likelihood of continued employment. If necessary you can send a verification of employment form to the employer which they will fill out and return to you.
Also be aware that is illegal to reject an applicant based on age, sex, disability, religion, race, sexual orientation, or if the applicant has children. If the person has a poor credit history, cannot hold down a job and finds it difficult to keep a minimum balance in his or her checking account, you are well within your rights to reject his or her application. Keep in mind that if you turn a tenant down because of information found on a credit report, the applicant can ask why and how the information was obtained so he or she can request the same information. You may also choose to perform abackground check as part of your tenant screening process.
When it comes to finding a tenant, you can’t be too careful. You are, after all, opening up your home to this person and trusting him or her to pay rent once a month. Proper screening should provide acceptable tenants to rent your property.
