What do ideal tenants look like to you? Generally a good tenant would be someone who pays their rent on time, maintains the property and is respectful of their neighbours. Finding the right tenant for your property is a balancing act that requires knowledge and ideally some experience. From the moment someone gets in touch with you about your property, the screening begins.
The tenant screening process can be divided into five clear stages:
- First contact
- The showing
- The application
- The approval process
- Lease signing
From stages one to three, you will be evaluating the suitability of each applicant against what your ideal tenant looks like. Working through these stages can often be the most challenging part of being a landlord. Many landlords struggle to find the time or just don’t feel comfortable working through this process.
The tenant screening process can be time consuming, and selecting the right one may take weeks, but it is an important part of keeping your investment safe and secure. In the vetting and interview stages, make sure that the potential tenant ticks all the right boxes – while not showing any signs that they may be unsuitable.
Here are four steps that you can use to see if a person would make a suitable tenant for your rental property.
1. Tenant background checks
It is important to know the background and history of the person looking to rent your property, as it is a good indicator as to how they will behave and act if you approve their tenancy. You could look at their work history, current relationship status, whether they have kids, pets or any noisy hobbies.
All of these things are going to have an affect on your property, whilst also likely impacting the neighbours, so make sure to learn all you can about the applicant.
2. Referees
It is imperative to ask for a list of three to five people that know them in a personal and professional capacity. Remember that each person you speak with sees them different in various situations (socially, manages them at work etc). Look out for words like reliable, honest, timely and sincere in the descriptions or during a verbal conversation. This may suggest the person is of good character and has an ability to meet ideal tenant requirements such as paying rent on time, looking after the house and being a good neighbour.
Read more: 4 Ways a Property Manager Can Help You Find the Best Tenants
3. Income
Is a person earning at a level at which they are able to consistently meet monthly rent payments and other expenses? Their income source and the stability of it both come into play. It is best to look for someone who is working full time and has more than enough money to cover rent and other home expenses.
4. Care
Some great questions, which you can ask during the screening process, are related to cleanliness and care. See if they answer openly or give a vague answer and try to skip over the topic. You want a person who is able to take good care of your property, and also alert you of any maintenance or repairs that need to be done straight away.
Remember that while the screening process may be lengthy and sometimes a bit difficult, it is worthwhile when you are able to select the best people live in your rental property.
