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Tenant Screening - Step-by-step


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

best tenant screening - In this post, I would like to look at The way to Do Tenant Screening - Detail by detail. Please be aware that this is for informational purposes only - and laws change from region to region.

Step #1. Credit score
Best property management companies understand the price of checking a prospective tenant's credit history. An up-to-date credit report is a crucial tool within the tenant selection process. It not just displays someone's capability to pay their bills punctually, but additionally on top of if they are increasingly being responsible with their credit.

Step #2. Police arrest records
Just as significant as a favorable credit history has a clear criminal background. This might be even more important. Again, it is a way of responsibility, and ensures that you are not renting to sex offenders or violent criminals. In fact, most prospective residents will be very pleased to hear that you also check criminal backgrounds. It can be a good advertising tool in providing a secure and economical home.

Step #3. Residence History
Many prospective residents will have a few minor blemishes on their credit file. Even though they don't have any blemishes on their credit file you should always verify their residence history, also. You'll want to determine they have been paying rent promptly, if they're an excellent tenant, and when their landlord would rent for them again.

One tip I would give here's to not only contact their current landlord, but also the one before that. If their existing landlord wants them out, they could give a more positive reference than deserved.

Step #4. Employment Verification
Another step up the verification process is to look at your prospective tenant's employment status. You will need to try to find a degree of of stability in their employment, and to check their period of employment.

Step #5. Income Requirements
Probably the most important parts in tenant screening is verifying their income. This essentially demonstrates their capability to cover the rent. Let's be honest...unexpected expenses appear for everyone. The automobile needs to be repaired, a critical bill arrives, etc. For this reason we typically require their income be equal to three or 4x the quantity of their rent. This ought to help in making certain they are able to pay the rent, as well as cover some of the people unexpected expenses that naturally occur.

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