Before you start signing the rental agreement, here are six tips on how to screen and how these steps keep you and your property safe:
THE CREDIT SCREEN A credit score means very little without context. A 600 credit score, for example, doesn’t tell you if the potential tenant is rising from the ashes of financial troubles or if they are spiraling downward from an 850 score. You need a full credit screen.
CRIMINAL BACKGROUNDA criminal background shouldn’t just be a local record search; it should be a national records search. Look for both misdemeanors and felonies, sexual predators, eviction history. All of that is very big, and you want a full picture of the potential tenant’s criminal background and history.
EMPLOYMENT Always review a potential tenant’s employment. Inconsistent or scattered employment history can be a major red flag. Is their employment current right now? Do they have pay stubs that they can show you?
PAST RENTAL HISTORY Reviewing rental history is more than just the last place a potential tenant lived; it’s the last few places they have lived. An unfortunate reality is that people do lie on their applications. Just because a phone number was provided for a past landlord does not mean that’s actually the past landlord’s number. So be thorough.
FAIR HOUSING RULES If you, as a property manager or a DIY landlord, own more than four homes—or you’re a real estate agent and you’re managing just one home as a licensed realtor—you have to follow all the fair housing guidelines. There is a lot of information regarding fair housing regulations. Case and point, real estate agents must take a three hour class on fair housing guidelines, laws, and best practices.
WATCH FOR MOVE-IN URGENCY If a potential tenant comes up to you and says, “Hey, I have full cash, I can pay cash upfront for the entire term of the lease,” that may be a warning sign. Listen for the urgency in needing to move. “I have to move right now. The owner is selling the property, it’s closing right now,” or something along those lines. Phrases like that can be a warning sign.
Don’t get railroaded by fast talk. Instead, slow down and ensure that you screen your potential tenants carefully. Review their social media. Even a basic Google search could bring up some additional red flags depending on what results you get back.
The holidays are a festive and wonderful time with friends, family and great food. If you are a renter though, it is sometimes difficult to fully get into the holiday spirit when your lease restrictions put a huge damper on your cheerful decor ideas ...
If you own rental property, it goes without saying you always want there to be tenants paying you to rent it. Turnovers not only cost you the time you could otherwise be earning, but they also come with other costs ...
What's the Best Way to Communicate With Tenants-Text, Email, or Phone?
Being There is no doubt that you want to be the best landlord possible, and that means being on top of absolutely everything. But it's easier said than done. Being a successful ...
You Can Avoid After-Hours Phone Calls From Tenants - Here's How
Probably the thing that scares new landlords and property managers the most is what to do when a tenant calls at 2 a.m. because water is shooting out of their pipes in all directions. This fear is so paralyzing, in fact ...
Overland Management will GIVE YOU a FREE month of Property Management Services for each new Owner/Investor you refer!
Click HERE for more information on the Property Owners Referral Program or to sign up today!
REALTOR REFERRALS
If your client is looking to have a rental property, or your listed property just won’t sell, don’t leave your commission hanging in the air. Instead, refer your clients to Overland Management.
Click HERE for more information on the Realtor Referral Program.
Overland Group, 14034 South 145 East, Ste 100, Draper, UT 84020, 801-355-1111
