When selecting and screening tenants, it is imperative to verify the reliability and financial stability of potential applicants. This practice serves as a safeguard for landlords, helping them avoid potential issues with their future tenants. Here are three crucial aspects to examine when conducting tenant screening process:
CREDIT HISTORY
Review the applicant’s credit history to assess their financial responsibility and ability to manage their finances. Look for any outstanding debts, late payments, or defaults on previous loans or rent payments. A good credit history indicates that the applicant is likely to pay rent on time and fulfil their financial obligations. Make sure that the applicant sends a full credit report with these details.
EMPLOYMENT AND INCOME VERIFICATION
Verify the applicant’s employment status and income to confirm that they have a stable and sufficient source of income to cover the rent. Request recent pay stubs, employment verification letters, or bank statements to validate their financial stability. Generally, a tenant should have an income that is at least three times the monthly rent to ensure they can afford the rental property.
The length of employment is also important to consider. You want to ensure that they have been with their employer for a good amount of time to ensure that their position within the company is stable. If the applicant has entered a new job and is still within the probation period, that can cause a concern.
RENTAL HISTORY AND REFERENCES
Contact the applicant’s previous landlords to inquire about their rental history. Ask about their rental payment habits, any property damage, noise complaints, or any other issues that arose during their previous tenancy. Additionally, request personal references to gain insight into the applicant’s character and behaviour as a tenant.
By thoroughly evaluating these aspects of a tenant’s application, you can make a more informed decision and minimize the risks associated with renting your property.
