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With more than 100 million renters across the country, owning a property and being a landlord is a great way to boost your income. While it is a great opportunity, there are some potential downfalls as well.
These mainly occur when you fill your properties with renters who aren't reliable or don't have the ability to actually pay their rent. That situation leaves you to deal with trying to figure out a way to get what you're charging. It can be frustrating and a difficult position to be in.
But if you have strict tenant screening procedures in place, your chances of having a problem go down significantly. Follow these three tips to help you find the best tenants possible.
1. Run a Credit Report
The best tenant screening services start with the credit report, which is a great indicator of if they'll be able to pay their fees or not.
A credit report is basically a person's financial history and how stable they have been with their money in the past. It's a good idea to have set parameters you look for in this report and things that will disqualify if you see them (like late payments for example).
It's important to note that a credit report should be used in conjunction with other financial information as well.
2. Have a Background Check
For most landlords, the goal is to pick a tenant that they won't have to see or deal with the entire time they occupy the home. The less drama with an occupant, the better.
This is why a tenant screening report should always include a background check.
You'll want to look for instances in the past when there has been trouble with the potential tenant that you don't want to be repeated. This will also give you a good idea of what you can expect from visitors to the home as well.
3. Check Prior Renting History
When you look for a tenant screening report, it should always include a prior rental history. This will show you where the potential tenant has lived and for how long, if there were any issues, and if they made their payments on time.
You'll also have the opportunity to speak with prior landlords to confirm that they were as good of a tenant as they say.
This information is crucial to verify that you're not going to have problems and will only see the benefits of having this person live in your rental home.
Tenant Screening Techniques to Try
When you have the right tenants living in your rental homes, the entire experience of being a landlord is different. You can sit back and enjoy the income boost without having to deal with extra drama and problems tracking down your money.
Following these tenant screening techniques will help you eliminate poor renter prospects right away so you can focus on more viable options. From there, you'll want to continue to screen and interview your candidates with more detailed specifications to find the exact right fit for your place.
If you're interested in getting assistance from a property management group in finding the right tenants, contact us today!
