Property Management: How do you perform tenant screening?

Investing in rental property means that you will be working with tenants, individuals who will be living or using your property for their business. Whether you have residential or commercial rental property, it is important to conduct thorough tenant screening to ensure that the individual or company you are working with will be a quality renter. You want your property to remain intact and undamaged as well as rent being paid on time. Prospective tenants should be willing to go through a screening process to ensure they are qualified to meet your renting criteria.

You could do the screening process yourself, but it is recommended that you hire a property management company to handle this end of your business as well as other aspects of your rental property. A Waterloo property management company will be able to easily provide tenant screening and with their knowledge and experience, find the best renter for your property.

But how should screening take place? Below are a few steps that should be included in the process to ensure you are only working with quality tenants.

Application

To begin, give the prospective tenant an application. A rental application will require personal details such as name, current address, employment information, financial information, references, etc. You can even create your own application online when you wish to learn more about the tenant. You want to be able to determine if the individual is a hard worker, financially sound and has a good track record as a renter.

Credit Check

Any reputable property management company that works for you should be running a credit check on prospective tenants. By pulling a credit check, you are able to see the renter’s previous credit history, going back several years. With this information, you can see if they were ever in default or made late payments on any debt.

Background Check

A background check is also important as it gives you a detailed report of the past history of the tenant. You will be able to learn if they have a criminal record, have been evicted in the past or other information that may help in the decision-making process.

Contact Previous Landlords and Employer

Your property management group should also be contacting previous landlords and the employer of the individual seeking to rent your property. By contacting landlords, you can find out if the individual paid their rent on time and if they caused any problems with neighbors or in general. By contacting the employer, you can also get a sense of what type of person the potential renter is, helping you make the decision if you will be signing a rental agreement with them.

Overall, it is important to cover every aspect when considering renting to an individual. Your property management company should be prepared to ask questions, contact previous employers and landlords as well as run a credit and background check to get to know the applicant.

At Latitude Properties, we do our due diligence to ensure that tenants of your properties are of the highest caliber. You will never have to worry about incidents involving your property as renters will be responsible in using your property for their dwelling or commercial space.