Whether they have an underwater mortgage or have little equity in their homes, many West hills homeowners have assumed the role of accidental landlord. By carefully screening prospective West Hills tenants, property owners can reduce their risks of no-pay and slow paying tenants, as well as damage to their West Hills rental property.

While most West Hills property owners have seen the value of their homes increase, 36 percent of homeowners are still underwater with their mortgage, which is down from 50 percent one year ago. Another 53 percent of metro Phoenix mortgage holders have less than 20 percent equity in their homes.

Sometimes homeowners need to move, even if they are not able to sell their homes, which leaves assuming the role of an accidental landlord. Some West Hills area accidental landlords decide to take the do-it-yourself route as opposed to hiring a property management professional. One of the first lessons these amateur need to master is how to screen potential applicants. Remember just because someone drives an expensive car and wears designer clothing does not mean the person will pay rent on time. It might means the prospective tenant invests in their appearance and their rent payments are a secondary priority. Here are some tips to find the best tenants in the Metro Phoenix area.

Learn the Law

Federal fair housing laws prohibit both property managers and property owners from making rental decisions based upon age (unless it is a retirement community), race, religion, sexual orientation, marital status, family composition, and disability. In fact, it is even illegal to ask questions of this nature on a home rental application or when interviewing prospective tenants.

Establish Rental Criteria and Stick to Them:

Before listing a West Hills rental property, the property owner needs to establish their rental criteria. Some considerations include the following:

• What is the minimal income requirement based upon having a rent-to –income ratio of 30-35?

• What credit history requirements will a tenant need to have?

• Will a tenant be ruled out for missing one rent payment during the past year, or five years?

• What is the maximum number of people that can legally occupy a home?

• Do you plan to allow pets? If so, will you have weight and breed restrictions? How much will the pet deposit be and will it be refundable? Will you charge “pet rent”?

Get Explicit Permission to Conduct a Tenants Background Check:

As part of the home rental application, there should be a statement, which the tenant signs, that gives the property permission to contact previous landlords, conduct a tenant background check, including a criminal background screening and renter credit check, and verify income and employment. The statement should also hold the landlord and information source harmless if the information obtained reflects negatively on the applicant.

Remember, if you feel overwhelmed by everything an accidental landlord needs to do, reconsider the option of using a West Hills property management firm.