The decision-making process demands more than just a thorough application process. It requires well-defined criteria to ensure the tenant you choose is the best fit for your rental property. Here is a few guidelines for setting criteria.
Require a specific credit score
Asking for a minimum credit score and running a credit report can help mitigate the risk of potential payment issues or defaults. An applicant with poor repayment history, overdue accounts, or excessive debt may not be the financially responsible tenant you are looking for.
Check references
Regardless of how qualified a tenant seems on paper, reach out to the references they provided to validate the applicant’s reliability. References from previous property owners or property managers offer a glimpse into the prospective tenant’s responsibility in maintaining a property and adhering to lease agreements. When reaching out to an applicant’s references, consider asking these questions:
- How long did the tenant live at the property?
- Why did the tenant decide to move?
- Did the tenant pay on time every month?
- Did the tenant respect the property?
- Would you consider renting to this tenant again?
- Does the tenant have a history of smoking?
- Does the tenant own a pet?
- How would you describe the applicant’s character?
Contact their employers
Verifying employment details provides insight into an applicant’s job stability, income consistency, and ability to meet financial obligations, including rent payments. Contacting their employers not only confirms the information on their rental application is authentic, but also allows you to ask about their income level and job tenure. This way you can rest assured that they would be able to afford rent and fulfill lease obligations, ensuring a higher likelihood of a successful and trouble-free tenancy.
Set an income requirement
As a landlord you want to make sure your tenants pay on time every month and setting clear income requirements helps assess an applicant’s financial capacity to consistently pay rent on time, every time.
Include your criteria in your listing
Once you narrow down the specific requirements you expect from potential tenants, communicate your expectation in the rental listing and application form. Transparency ensures that applicants are aware of your requirements from the outset and can prevent future misunderstandings.