Find out about the best ways to screen tenants and how to get the information you need as a landlord to decide if a tenant is rent-worthy.
What you will find out:
What is a check of a renter?
What questions can I ask a possible tenant?
What are some things you should not ask a possible tenant?
How do I make sure the roommate can pay rent? How do I ask for proof of income and source of income?
Due to the COVID-19 outbreak, many people have lost their jobs or are looking for new ones. In unsure times, this makes it hard for landlords to find good renters because they do not know what to look for. There are also issues of fair housing and other law issues to think about. Here, we talk about the best ways to screen tenants and how to get the information you, as a landlord, need to decide if a renter is good enough to pay rent.
Table of Contents
What is a check of a renter?
The screening process for tenants tries to answer two basic questions. First of all, can the renter pay? Second, do you think the renter will follow the rules of your lease?
A basic plan for screening tenants includes a credit check and a check of their crime history. If you use a tool made for landlords, you can also find out if the person has ever been kicked out. You might also need proof of income. You should know that some state and local rules protect information about crime records and credit needs. You might not want to ask questions about these things in these places.
Sticking to objective standards like the ones above is a good idea. You could get a fair housing report if you use social media, go with your gut, or do not follow a set plan. Having a method that is clear and based on facts gives you an extra defense against possible complaints.
What questions can I ask a possible tenant?
Questions can help the renter decide if they want the apartment and if they meet the requirements for the application. For example, you could ask them how much room they need or what features they want.
You could also ask if their current pay is enough to meet your basic standard. You can also ask about a credit score floor if you have one. Many renters want to bring pets, so if you let them, you can talk about your pet deposit or pet rent rules.
What are some things you should not ask a possible tenant?
You might want to avoid asking possible renters questions that could be seen as discriminatory or that break other housing rules when you talk to them. To do this, you need to be more than just nice. There are some things that can not be talked about.
For example, you might not want to ask a potential renter if they have kids. Even if this does not change your mind, a roommate could say they were turned down for a place to live because of their family situation. Ask the individual general questions about what they want. If they say they want to be close to a good school for their kids, you can tell them about the schools in the area.
Lastly, state and local rules may limit how much you can find out about a roommate.
How do I make sure the roommate can pay rent? How do I ask for proof of income and source of income?
Some renters may exaggerate or lie about how much money they make. You can kick someone out if they do not pay their rent, but it takes a long time and costs a lot of money. With removal moratoriums still in place in many places, it is even more likely that a renter will not be able to pay.
Pay stubs, bank records, and tax reports are the usual ways to show income. Pay stubs and bank bills are bad because anyone with a computer can change them. Tax returns can be up to a year late and may not show a new change in jobs.
A lot of renters are using businesses that do thorough checks on people’s income. They look at the human resources records of bigger companies to check right away. They could also check with companies and banks immediately.
When you are ready to rent to someone, you might want them to sign the deal online. Electronic signatures are legal and a safe way to sign papers from a far away location. Online payment services can also check where a tenant’s money comes from and make sure the account goes to the renter.
