Finding a reliable, qualified, and long-term renter is every property manager and landlord’s dream. When you’ve worked hard to acquire and maintain your home or an investment property, you want to ensure you find renters who will treat it just as you would. Aside from keeping your property in tip-top shape, you should trust them to pay rent on time, and it’s ideal if they are an overall hassle-free tenant.
So how do you find this dream renter? Once you’ve listed your property for rent online and interested leads start flowing in, it’s imperative that you take certain steps to qualify your applicants with comprehensive tenant screening tools and rental applications, rather than your personal biases.
Why should I screen a renter?
Screening renters is a nonnegotiable part of the leasing process. It protects you from daunting evictions, ensures your property is not misused or damaged, and if nothing else, is a security measure for your community and other renters residing in the same building. On average, evictions can cost upwards of several thousand dollars in missed rent and legal fees, and as a result, are a time-consuming and expensive headache. With nearly one million evictions every year, and 1 in 17 renter households filing for eviction, it’s important you know who you’re renting to before you sign a lease.
How do I screen a renter?
With a standard screening process and a clear set of requirements that every prospective renter must adhere to, you’ll eliminate the risk of making snap judgments, signing a lease with the first lead you get, or being lenient when it comes to choosing a renter. Don’t know where to start? We recommend creating a rental application that asks for basic information, running a thorough background check, reviewing a credit report, and speaking with personal and professional references. Zumper provides free screening tools that does all of the leg work for you. When you have a lead, you can request an application package from them with a single link which includes a rental application, background check, and credit check provided by TransUnion®.
1. Run a background check
Background checks provide basic information such as license records and employment history, as well as criminal and eviction history. You’ll be able to gauge the quality of the renter, confirm information they’ve self-reported, and decide if there are any red flags in their past that might make them a risky renter. Zumper partners with TransUnion® to process background checks. When you request to run a background check on an interested renter, the renter will be charged a $30 screening fee.
2. Request a credit report
Reviewing a renter’s credit report will give you insight into their financial health and if they’ll be able to afford your monthly rent. Warning signs that they may pay late or miss a payment altogether are an unhealthy income to debt ratio or outstanding debt that has been sent to collections.
There are several factors that contribute to a credit score, and understanding these is key. On average, a qualified tenant may have a credit score anywhere between 600-850, however, this standard can vary from one rental market to the next. And while a perfect credit score is 850, only a small percentage of Americans, and more specifically renters, have achieved this elusive number. Lastly, make sure you use a credit check method that is considered a “soft pull” like Zumper’s free screening tools. This way, the renter’s credit score doesn’t take a hit, as too many hard inquiries into someone’s credit can negatively impact their score.
3. Verify their income
In addition to taking a look at their credit history, you can also request to verify their income. A recent pay stub, a W-2, or an offer letter with their salary are all acceptable forms of proof of income. As a general rule of thumb, they should earn between 2 and 3 times the monthly rent, annually. In the event they have a co-signer, the combined income of both the renter and co-signer should be well within 3x the monthly rent.
4. Speak with references
Speaking with their previous landlords can help clear up any concerns you may have and confirm if they’ll be a respectful tenant. If a tenant has had noise violations, complaints filed against them, or damaged property in the past, it’s probably in your best interest to steer clear of them and pursue other applicants. You can also ask for employer references to confirm current employment and past performance.
Questions to ask previous landlords:
- Did they pay rent on time?
- Were they a respectful neighbor?
- What condition did they leave the property in upon move-out?
- Were there any security deposit disputes?
- Would you lease to this renter again?
Questions to ask professional references:
- Confirm their current or past employment.
- Are they a responsible employee who takes ownership?
- Are they likable and easy to work with?
- Are they punctual?
When you have all of the facts up front about prospective renters, you can make an informed decision about who is the absolute best candidate to rent your property to. You’ll have confidence in their ability to pay rent on time every month and peace of mind that they’ll take great care of your property.
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