How to Screen Tenants in 5 Easy Steps

Did you know that about 95% of your tenant problems can be eliminated or avoided with a good screening process? Many of us don´t like having vacancies and we want to rent out our property FAST! Well now, a good screening allows you to quickly rent out your property to a well qualified applicant.

Our 5 Steps to Screening Tenants:

STEP 1: First Contact

You should begin screening your tenants the second you first make contact.

Usually, first contact is by telephone. Use this as a great opportunity to ask important questions that will help you decide if you should proceed to step 2 with this applicant. At this point, inform applicants of rent and security deposit requirements and other relevant information that might disqualify the prospective tenant.

We suggest making a list of questions to ask and have it handy while you conduct your first contact interview. For example:

Name:
Phone:
Reason for Moving:
# of People:
# of children & Ages:
Occupancy Date:
Pets:
Smoking:
Credit:
Landlord References:

Also, feel free to ask about any other information that you know would make the tenant undesirable to you. Serious applicants want to make a good impression on you and will be happy to answer any questions. You might want to avoid those who refuse to answer your questions.

STEP 2: Showing the Property

What to look for while showing your property:

1. General Appearance. The general appearance at a person and how they maintain themselves can hint at what kind of home they keep. In general, do they look neat and clean? How do they carry themselves? Do they look like they would care for your property?

2. Attitude & Manners. Does this prospect behave respectfully? Does he or she show indications of being difficult to deal with in the future? Did the prospect wipe his or her feet when stepping into the house? Did the prospect walk into the rental while smoking? You can learn a lot about people even before speaking to them. Sometimes it helps to pay attention to details.

3. Criticizing the property. Note how the applicants feel about the property. Are they pointing out legitimate concerns or they looking for a way to "negotiate" a lower price? Are they demanding too much?

4. Yes or No? Does the Prospective tenant look serious about the inquiry. Are they prepared to fill out an application and pay the fee that is associated with it? Are they willing to provide you with the security deposit you are requesting?

STEP 3: The Application Process

One of the most important tools for a good tenant screening is a quality rental application. Make sure the application includes questions that you feel are crucial to renting to this person. It is very important that the application be filled out thoroughly and accurately. Be sure to request a copy of the person´s driver´s license and social security card to verify their identity. We cannot emphasize enough the importance of running a credit report. Despite what their appearance tells us, a credit report will give you a much more accurate perspective of the applicant. DO NOT rent your property based solely on appearance. If you do run a credit report (and we strongly suggest that you do) collect a screening fee.

Things to look out for:
*inconsistencies
*if the applicant does not provide you with the previous landlord´s information, ask them why. You should always be able to call previous landlord for references.

STEP 4: The Approval Process

This is an opportunity for you to make sure the applicant can and will deliver. Set the time, date and place for your lease signing. Instruct the applicant(s) to bring the proper amounts of monies, identification (if you don't already have it), and how you prefer to be paid. (Check*, money order or cash)

* Be sure to tell your new tenants that possession of keys will be given only after checks have cleared.

STEP 5: The Lease Signing

Its important to have a quality residential lease. Read the entire lease with the tenants at a lease signing. It is your agreement with them. Shouldn't you both know what is really being agreed to? As you read the terms of the lease with the tenants, you will be able to conduct your 5th and final step of screening. Does the tenant argue on every item? Is the late charge an issue? And so on. Also, be sure that any specifications that you have set forth are included in this lease, as it is a formal agreement.

Remember, it is not too late to change your mind. If you do not agree with the tenant´s response or something just does not feel right, do not rent to this tenant.