Selecting a tenant is a complicated process that all landlords will likely need to go through at some point. Some landlords tend to be very lax about it while others may have a quite lengthy screening process. Although there is no sure fire way to know everything about what a tenant will do, there are a number of ways to gain a better understanding of the tenant before they are admitted. Here are some tips to keep in mind.

Pay attention to the overall presentation of the possible tenant

Obviously, all landlords must act in accordance with Fair Housing rules and laws. However, it is possible for landlords to consider the overall presentation of the possible tenant. This has nothing to do with things like race, sex or age, but rather the overall presentation like if they are neat, well groomed, etc.

Perform a credit check

A credit check is something that may cost the landlord a relatively small fee, but in some states the tenant may be required to pay for it. A credit check will just provide a record of how the tenant has paid his or her previous financial obligations. This will include information about late payments, collections, and delinquencies. In this day and age, the economy has been quite unstable, so keep that in mind if the possible tenant has any type of financial problem. Most tenants usually have some type of blemish, so do not expect anyone to be perfect. This will usually be a concern only if the possible tenant has some severe financial problems.

Perform a background check

A background check can be obtained from a number of organizations for a small fee, and it is definitely worth the cost. A background check will often include information like a criminal record, law suits, and any other type of information that is public record. Again, no one is perfect and one blemish should not be an automatic disqualification, but the presence of multiple infractions provides a pretty good indication of the risk level associated with the potential tenant.

Create a high quality application and lease agreement

It may be a good idea to get a legal professional to write a quality application and lease agreement. These are actually legal documents that outline your expectations and also describe your role as a landlord. A solid document will help protect you further down the line, so it is definitely worth the cost.

Maintain a fair screening process

As a landlord it is vital to maintain a fair screening process for possible tenants, so all decisions should be based on business and not on personal information.

Tenant interview

A brief interview with prospective tenants is a good way to get to know them and understand their needs & expectations. Do not say anything that could be construed as discrimination, but it is perfectly fine to ask about whether they have pets, how many people will be living in the apartment, or if they smoke.

Conclusion

The truth is that there is always a risk and there is no guarantee about how the tenant will act once they move in. Just because a tenant looks a certain way, it does not mean that he or she will be a good tenant. The best thing a landlord can do is use the options at their disposal like credit checks, background checks, and interviews to develop a more complete picture of the tenant prior to move-in.

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Category: Advice
Keywords: landlord, tenant, real estate