Finding a great tenant is arguably the most important part of renting a property. Without a tenant, you’re unable to collect rent. And, without great tenants, you risk your residents not respecting your property, or not paying rent. So after completing a successful marketing campaign, it’s time to know how to select the best tenants out of the prospects!
How to Identify Qualified Tenants
Performing a tenant screening connects you to your goal of landing the right type of tenant for your Pasadena rental unit. You should start by setting a standard for a high-quality renter. Ensure they have these characteristics:
- Has the ability to pay the rent.
- Employed in a stable job.
- Has a good rental history showing consistent rental payments.
- Has no criminal record.
- Displays a responsible attitude.
Procedure for Screening Tenants
Before you can effectively screen renters, it pays to create a criteria list. Think about the type of renters you seek. Then you can proceed to develop a screening procedure that meets the standards you’ve mapped out.
1. Performing Pre-screening
To save time, landlords can conduct pre-screening. You can create a listing that already informs the prospective renters about your requirements. You can also ask vital questions from candidates when you’re conducting your Pasadena property tour.
Doing a pre-screening helps you spot future red flags that you can avoid. Adopting an extensive screening procedure also helps to eliminate sub-par candidates who are most likely to give up early on. This can be beneficial for landlords so you can concentrate on candidates that are invested and qualified enough to become residents of your Pasadena rental home.
2. Reviewing a Rental Application
Your Pasadena rental application form should be able to extract important tenant information and ask the following:
- What’s the contact information of the applicant?
- What’s the current residential address of the candidate and the landlord’s name and contact info?
- What’s the previous residential addresses, including the landlords’ names and contact info?
- What are the names of the present and former employers, job title, salary and period of employment, including contact references?
- Do they authorize credit and background checking?
Learning a candidate’s income level is essential to find out early if the renter is capable of meeting the monthly rental dues of your Pasadena property. You can follow a baseline rate of triple the rental fee. But this isn’t the only factor to check. You need to also evaluate the renter’s financial obligations.
Some people may not make triple the rent rate but can still meet the monthly payments since they don’t have a lot of payables, compared to high-salary workers who have a lot of debt.
3. Verifying a Tenant’s Income and Employment
It’s crucial to verify the employment information to ensure that the data provided are accurate. You want to avoid accepting a renter who falsified information to be accepted as an occupant in your Pasadena unit. That’s why you need to review the details provided to you.
4. Inquiries to Make to Former Landlords
Talking to the present and former landlord is a great strategy to get great tenants. The current landlord may have a hidden motive for providing positive feedback of the candidate to avoid a tedious eviction process.
Meanwhile, past landlords would have no cause to lie and can be trusted to share whether the candidate was reported for complaints, left the unit without paying for damages they caused, or was a delinquent renter.
You also need to be careful about potential renters who will plan an elaborate lie with the help of their friends. You may be talking to a fake landlord and the way to get through this is to ask first about property vacancies before communication about the candidate. Through the reply, you can tell if you’re talking to a real landlord or a fake one.
5. Evaluating Tenant Credit Reports and Background Checks
Credit and background check focuses on:
- Complete account history.
- Credit score.
- Prior evictions.
- Criminal history.
Credit scores show the financial health of a renter. Obtaining a score of 680 or higher is satisfactory and shows the candidate is responsible with finances. Ultimately, it’s the landlord’s judgment when seeing the overall case of the renter.
If records show no outstanding debt or minimal debt, then this is a good factor. You also need to check if the renter has a criminal history or has an eviction record since these are red flags and can cause conflicts in your Pasadena rental home.
6. Accepting or Denying Potential Renters
After accomplishing the steps outlined above, you need to decide whether to accept or reject the candidate.
If you plan to accept the renter:
- Inform them through a call.
- Send an email.
- Provide instructions for the lease signing.
If you plan to reject the renter:
- Put the denial in writing.
- Send an email.
You must ensure you have proof that you denied the application. You want to avoid disputes of any kind which can become costly and time-consuming.
Be straightforward when rejecting a candidate. It’s not necessary to elaborate the reasons unless the tenant pursues answers. When screening renters, ensure you are compliant with the Fair Housing Act. Avoid discriminating against protected classes to prevent complaints.
Bottom Line
Screening renters can take up your time and can also be costly but the benefits are priceless. You won’t need to worry about turnovers, damages, and unpaid rent. You can count on steady rental earnings that you can use to plan property renovations to ensure your Pasadena rental property remains habitable and adds value through the years.
If you’re the type of property owner who prefers a hands-off approach to your rental property, have a full career, or want to put your efforts in increasing your property portfolio and pursuing opportunities, it’s advisable to hire a property management company.
A professional property manager has the expertise when it comes to marketing, screening tenants, maintaining the property, and dealing with repairs and rent collection. Are you seeking a trusted property management company? If yes, contact Prime Realty Property Management today!
