Throughout the tenant screening process,history verification is often a hassle. The potential tenant must go through a screening process. The landlord’s primary focus is to validate the information and documents received from the applicant and to attempt identifying any “red flags”, which ultimately will impact whether they move forward with the application process or pass on that tenant.
One of the red flags could be when the applicant is insisting on renting the place ASAP. In such cases they should have a good reason for moving the date that’s too soon or immediate.
You should ask why the tenant may have a valid reason. If not, it may be a sign that the tenant is being evicted.
Therefore, when the tenant calls to book a visit, you can use this opportunity as a “Pre- Screen”. That can save your time and money in the placement process.
“Don’t invite a tenant over for a visit if the tenant doesn’t meet your standards”.
If everything seems to be OK over the phone you can start the next stage by sending an application form. It is better to ask for an email address to send it to as this will be helpful when looking at your tenant’s online profile.
The main information you collect from the tenant including :
- Personal Identifying Information
- Residential History
- Employment History
- Financials Information
- Reference Information
- Emergency Contact Information
Your application form includes an item where the tenant gives you express consent to run the credit history check.
By the way, some tenants prefer visiting the property before filling out an application form which is quite understandable. “Don’t consider that as a red flag”.
When potential tenants complete the application form it is a good sign and it shows their desire to get the rental unit.
Now it’s the time when you should look for the tenants online search engine like google and on social media platforms like facebook to find out if there are any red flags on public media. You can use the linkedin platform to see employment history and their supervisor.
After checking everything out you can book for showing the property. At this stage, you make sure tenants bring two pieces of ID with them. Using this as an opportunity for a few more screening questions and let the tenants talk about their job & interest. You can also screen tenants by analyzing the behavior during the visits.
To verify the Information provided by tenants:
Call employers, current landlords and references; do credit and background check; income verification and calculate the Tenant’s Rent Affordability (Rent -to -Income Ratio = % 35~38).
Once an applicant is approved, landlords should complete a written tenancy agreement with the tenant(s). The rental application should not be used to replace a tenancy agreement.
Some landlords think they don’t have time for tenant screening. You have to know, you are putting yourself at big risk potentially costing you even more time and money.
A brief explanation, in case of lack of tenant screening and with approving the wrong tenants because they were able to scrape by providing you with a fraudulent application. Not only you will not gain anything on your investment but also you will put lots of time and cost you thousands into evicting that tenant and rent loss.
When you are busy with the screening process, you take time away from other opportunities that would be more impactful for your business and job, zoodpm has developed a state-of-the-art tenant screening tool, Please call us at 647-985-zood (9663) for more discussion.