As a landlord, the most important thing you can do is choose the right tenants. The wrong tenants could be an expensive and frustrating nightmare. When you choose to work with a property management company, we can do a lot of the work for you. This includes finding the right tenants. When we interview prospective tenants, aside from talking to them, we break down our approval process into three main categories.
Verify Employment and Income
One of the most important things to look for in prospective tenants is the ability to pay the rent. You want to know that the tenants have a steady income and a good history of paying their bills on time. You want to look for prospective tenants who make at least three times the amount of rent per month. You can request their most recent pay stubs and call their employer to verify their employment. To see if your potential tenants have a good track record of paying bills on time, you can run a credit check. This examines their income to debt ratio and lists any past evictions that you should know about.
To get a good idea of how your experience will be with a prospective tenant, it’s a good idea to ask them for references. Ask for 3 non-family references and talk to previous landlords, not including the prospective tenant’s current landlord. This is because if the tenant is problematic, the current landlord may be willing to say anything just to get the tenant off their hands. Consider asking non-family references these questions:
- Are they a reliable individual?
- How have they exemplified responsibility?
- Do they seem tidy?
Consider asking previous landlords these questions:
- Did they pay rent on time?
- Did they give at least 30 days notice before moving?
- Was the tenant tidy?
- Did they cause damage other than normal wear and tear?
- Were they respectful of neighbors?
- Did they complain often?
Another great way to tell if a prospective tenant is reliable is to perform a few background checks. We run a criminal background check to see if the tenant has a criminal history. Many tenants will try to cover up a period spent incarcerated by extending their dates of employment on the job history. This can suggest that the tenant is untrustworthy. A good tenant will be upfront and honest about their criminal history.
In addition to a criminal background check, we also find out if the applicant is listed on a sex offender registry or national terrorist watch list. This ensures that you know what kind of risks are associated with your prospective tenants. Being fully aware of your applicants’ full credentials helps you to make a more informed choice of who to rent your property to!
Residential Property Management from Red Umbrella
With over 15 years of experience, Red Umbrella offers a wide range of services to fit your unique needs and desires. We fill tenant vacancies, perform home staging, conduct tenant screening, and more! Looking for a personal assistant? We can run your errands, take care of pets, organize events, and more! From professional to personal, we offer the exact services you need.
To contact Red Umbrella, simply visit our contact page, give us a call at 443.995.0628, or send an email to Tracy Weiss-Biddinger at firstname.lastname@example.org. Want to keep up with the latest advice and updates? Follow us on Facebook, Twitter, Pinterest, LinkedIn, and Google+!