Picking a great renter is one of the first big decisions you will make as a landlord. It’s a decision with far-reaching consequences, and sometimes it’s difficult to know how to pick between multiple tenants. Let’s learn more about how to pick a good tenant for your property.
Advertise Your Expectations
Before you even begin the search for renters, you want to set criteria for what you expect from your renters and create advertisements reflecting your criteria. Try to visualize the type of renter you want. Ask yourself questions like: Am I looking for a small family to rent to or a few young professionals? What income should a renter have? Will I allow pets? Thinking about these questions and your preferred answers will make the screening and selection much easier. Here are a few good points to consider when deciding how to select a tenant:
- What income does a renter need to afford rent?
- Does the renter seem friendly?
- Is there a co-signer or is the renter employed?
- Does the renter fit with your lifestyle — for example, smoking or pets?
Once you have decided what you want in a renter, you can begin advertising for your property. In your listing, start by writing a few paragraphs describing the property and what the renters can expect when living there. Mention the things you require in ordered to be a renter such as an application fee, a background check, and a credit report. Building a positive relationship with your renters is an important part of being a landlord. Having clear communication about your expectations from the beginning can help build this relationship.
Follow the Law
It’s extremely important that you follow the law when choosing your renters. You must follow the federal law set by The Fair Housing Act which protects people from discrimination when they are renting or buying a home. So while you may have an ideal version of a renter in your mind, and you can ask renters many questions, you can not ask questions or discriminate based on:
- Race
- Color
- National Origin
- Religion
- Sex
- Familial status
- Disability
The Fair Housing Act means landlords cannot set different terms, conditions, or privileges for different renters. You must treat all renters equally. Become familiar with the specifics of The Fair Housing Act, as failure to follow these federal rules can lead to fines and even jail.
Analyze Credit Score and Verify Income
Analyzing a renter’s credit score can help you find a renter who is financially responsible. A credit score summarizes a creditors’ history, including their debts, repayment history, number of active accounts, and other factors. The higher the credit score, the more responsible the renter is. Zumper has a free tenant screening tool that can help you run and understand your renter’s credit score.
A credit score can help you understand a renter’s financial past, but it’s also important to look into their future finances. Income verification is an excellent way to ensure your renter will pay their rent in the future. For income verification, it’s a good idea to look for a renter who has an income that’s about three times more than the monthly rent. You should call the renter’s employer to verify their employment and length of employment.
Run a Background Check
Landlords should also run a criminal check to ensure they pick a good renter. A background check will tell you if your renter has a criminal history. While you can rent to someone with a criminal history, other renters may hold you liable if you rent to someone with a serious criminal background. Plus, there may be specific state or city guidelines to follow when renting to someone with a criminal history. Criminal information is public record, so you can run a background check yourself if you have a potential renter’s name and date of birth.
Remember that there is no national criminal database, so running a thorough background check can be difficult and time-consuming. You may want to hire a third party to do this for you. And most important, in some states like California, it is illegal for landlords to refuse to rent to people with certain criminal convictions. Also, some cities have banned background checks for renters altogether, so be sure to check your local laws before you start the process.
Check Employment
It’s important to verify that your prospect works where they say they do. You can verify employment two ways:
- Ask your prospect to provide an income verification letter
- Call your prospect’s manager or company and speak to someone who can verify their employment
Check With Previous Landlords
Another way to ensure you find the best renter is to talk with previous landlords. If possible, check with at least two of their previous landlords. Here are some questions you should ask the previous landlord:
- Can you confirm the duration of the renter’s time on your property?
- Why did the renter leave?
- Did the renter pay their rent on time?
- How did the renter maintain their apartment?
- Did the renter have any neighbor complaints?
If the applicant is a first-time renter, they will not have a previous landlord you can call. Instead, you can ask for other references that may help you better determine the character of the renter. You can also insist they have a co-signer on the lease.
Use a Screening Tool
The easiest way to help you pick a good renter is to use an online screening tool. Zumper has a free landlord screening product that can help you gather information about potential renters. Zumper’s renter screening product makes it easy to screen renters by requesting a credit report and rental application online.
Being a landlord can be a stressful job and it’s difficult to organize renters and potential renters at one time. Having all your information stored in a secure online database can make the process much easier. Zumper’s can help you gather information about your potential renters.
Picking a good renter can be a time-consuming process, but it’s extremely worthwhile in the long run. Having a renter that you trust financially can be an immense relief to a landlord, and by knowing what to look for in a tenant and using an online screening tool, picking a good renter is a breeze.
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