As the owner of a rental property, it is essential that your buildings remain in a state of good repair, that your tenants pay their rent on time and in full, and that empty units do not remain vacant for over one month between tenants. Given that every month a unit sits empty costs you money, many landlords rush to fill the vacancies without taking time to properly screen tenants. This is a huge mistake that can end up costing far more than an apartment that sits idle.
If you’ve experienced problems with your rental units and are looking for a simple, quick method to screen tenants, check out the five tips below:
Make Applications Mandatory
Never rent to a tenant without a completed application. You can purchase prewritten applications online or you can create your own. Be sure that any application you use complies with local, state, and federal laws regarding fair rental practices.
Check Eviction History
While this won’t always tell you the whole story, prospective tenants who have previous evictions are more likely to have issues paying the rent or maintaining their unit.
Check Income and Credit
Be sure that your prospective tenants can afford to pay your rental rate every month. When you screen tenants, you should also run a credit check to determine creditworthiness.
Limit the Number of Tenants
You can stipulate how many people may live in the unit. This may already be determined by fire codes in your area, but a good rule is no more than two people per bedroom.
Require a Security Deposit
Requesting a deposit in addition to first month’s rent will give you a good idea of their financial situation.
Landlords who properly screen tenants can eliminate many problems they faced in the past. Express Capital Financing helps your rental properties work harder for you; contact us today to learn more!