Renting out a property can be a daunting task, from creating an application to finding the perfect tenants. One crucial aspect of this process is tenant screening. This article will guide you through the process of screening renters, ensuring you find the right fit for your property, whether it’s in Austin or Chicago.
Understand Fair Housing Laws
Before delving into tenant screening, it’s essential to grasp the Fair Housing laws. While you can set your requirements, it’s crucial to follow local, state, and federal laws. The Fair Housing Act prohibits discrimination based on protected classes such as race, color, national origin, religion, sex, familial status, or disability. Familiarize yourself with additional protected classes in your state to avoid inadvertently breaching these laws.
Set Application Requirements
Establishing stringent application requirements can assist in objectively selecting suitable tenants. Consider the following when determining your qualifications:
- Income: Ensure prospective tenants can afford rent without straining their budget.
- Credit History: Although a higher credit score is desirable, consider other factors such as rental history.
- Previous Evictions: Request information on any prior evictions.
- Criminal History: Based on safety concerns, establish criteria for evaluating criminal history.
Pre-screen Renters
Pre-screen renters effectively through your rental listing. Provide essential details such as monthly rent, security deposit, application fee, background check, and pet policies. This information empowers tenants to self-assess their eligibility.
Create an Application
Maintain fairness and objectivity by utilizing a standard application for all applicants. Obtain critical details such as addresses, employment history, landlords, income, debts, and pet information.
Run a Credit Check
Running a credit check offers valuable insights beyond the credit score. Verify financial stability, identify bankruptcies, late payments, and corroborate other applicant information. Consider a credit reference for further verification.
Conduct a Background Check
Ensure tenant safety by conducting a thorough background check. Identify any criminal records and court cases to make informed decisions during the screening process.
Verify Other Information
Validate applicant information through W-2 forms, pay stubs, employer references, and landlord history. Reach out to personal references to supplement your evaluations.
Meet Potential Tenants and Ask Questions
While optional, meeting potential tenants can provide additional insights. Comply with Fair Housing laws when posing questions such as move-in date, reason for moving, pets, and prior evictions. Allow tenants to inquire about the property during these interactions.
Decide on Tenants
Once you’ve gathered all necessary information, objectively evaluate each prospective tenant. Consider your defined requirements and aim to select the first qualified applicant. Maintain an objective approach throughout the tenant screening process.
Finding the ideal tenant requires time and diligence. By establishing clear screening guidelines and following a systematic process, you can identify the best match for your rental property.
