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Tenant Screening - Step-by-step


best tenant screening - If you are an investor that owns apartment buildings or a property manager, you realize the value of tenant screening. Tenant selection is among the most important activities in owning and managing apartments.

tenant screening - In this article, I wish to look at How To Do Tenant Screening - Step By Step. Please note that to informational purposes only - and laws change from state to state.

Step #1. Credit rating
Best property management companies understand the value of checking a potential tenant's credit history. An up-to-date credit history is a vital tool in the tenant selection process. It not just displays someone's capacity to pay their bills promptly, but in addition on top of whether or not they are being responsible making use of their credit.

Step #2. Criminal record
Just like important as a good credit history is a clear criminal record. This can be even more important. Again, this is a way of responsibility, and helps to ensure that you are not renting to sex offenders or violent criminals. Actually, most prospective residents can be really happy to hear that you also check criminal backgrounds. It can be a good marketing strategy in providing a safe and economical home.

Step #3. Residence History
Many prospective residents could have a few minor blemishes on their own credit history. Even if they do not have any blemishes on their credit report you should always verify their residence history, too. You'll want to know if they've been paying rent punctually, if they're a great tenant, and if their landlord would rent in their mind again.

One tip I'd give here is not only to contact their current landlord, but also the one previous to that. If their existing landlord wants them out, they may provide a more positive reference than deserved.

Step #4. Employment Verification
Another part of the verification process would be to look at your prospective tenant's employment status. You'll want to search for a degree of of stability inside their employment, also to check their duration of employment.

Step #5. Income Requirements
Probably the most important parts in tenant screening is verifying their income. This essentially demonstrates their capability to pay for the rent. Let's be honest...unexpected expenses show up for people. The car must be repaired, an unexpected bill arrives, etc. This is why we typically require their income equate to three or 4x the quantity of their rent. This could help in ensuring that they could pay the rent, as well as cover some of the people unexpected expenses that naturally occur.

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