Every landlord wants a tenant who pays the rent promptly and takes care of the rental property. But how can you tell that a person is a good tenant? The most significant step is to conduct a proper screening check before you sign the tenancy agreement.
There are a lot of signs that may indicate a problem tenant at first glance. When dealing with a prospective tenant, listen to your gut instinct or rely on your first impression. Here are some steps to screen your potential tenants and avoid the terrible ones ahead of time.
1. Ask A Few Questions
When potential tenants give you a call for the first time, make that moment an opportunity to screen them. You’ll be surprised at how much trouble you can avoid by simply asking the right questions.
Some good questions you can ask are:
- How many will be living there?
- How long are they planning to stay?
- What’s their employment status?
- Why did they leave their previous place?
- Do they have pets? If yes, how many?
- Do they smoke?
At this point, tell your potential renters about your security deposit and advance rent requirements. Inform them of your background, credit, and previous landlord checks, and man will withdraw because they have something to hide. Share any important facts about the rental property that may make the prospect ineligible.
Keep in mind that anyone interested will answer all these questions properly. If not, then you can scratch them out from your candidate list.
2. Observe Their Behavior
You can get a glimpse of the tenant’s behavior during the viewing. Does the tenant arrive on time? Do they seem polite when looking at the property? If you have current housemates on your property, will they fit properly?
If the tenants don’t show up on time, then that’s a signal that they may not also be punctual when paying the rent. If they’re late or display rude behavior, it might indicate future issues like late rent payments or a disregard for rules. Compatibility with current housemates is also important to avoid potential conflicts.
Besides the attitude and manners of the prospective tenant, be aware of their appearance. In most cases, serious applicants want to make a good impression so they dress neat and clean. If the prospect is untidy, then it’s a telltale sign that he or she won’t take care of the property.
When the viewing ends, don’t rush into a decision. The next step is to verify finances and credentials to ensure they’re qualified.
3. Make A Rental Application
The next step is the application process. The first thing you need to do is to create a written rental application. Ask everything that you need to help you choose the best candidate.
Here are some details that you can ask:
- Employment history including contact details of previous employers
- Current income level
- Financial details, like credit cards and bank accounts
- Lifestyle information, like the number of pets
- Character references with their contact details
Let applicants know their applications will be reviewed alongside others and confirm that missing or incomplete information could delay or disqualify them. If you see some missing information, be cautious since this could be a sign that the tenant may want to hide something.
Don’t forget to state on the application that a background or credit check will be conducted if appropriate and that the potential tenant is giving authorization for a credit check.
4. Verify Their Identity
At this point, ask for verification of their identity. Fraud can happen, so it’s critical to verify an applicant’s identity.
Ask for a copy of their valid photo identification card, then attach it to the rental application. If they can’t provide ID, it's best to move on to another candidate.
You may also include a section that asks for their license number. Look the license number up to further check their identity.
5. Conduct A Credit Check
One of the most essential stages of the screening process is the credit check. Some state laws let the landlord ask for a fee to do a credit check while other states don’t. Either way, you need to check your potential tenant’s credit to protect yourself as a landlord.
A credit report provides valuable information, including:
- Payment history and credit rating.
- Outstanding debts and financial obligations.
- Bankruptcy records or other significant financial issues.
If the report reveals serious financial concerns, like excessive unpaid debts, it may be best to look for another tenant. Always explain this step to applicants and obtain their written permission before running a credit check.
6. Do A Background Check
A background check is a good way to make sure that the potential tenant won’t cause any problems in the future. A background check will offer you a comprehensive report of a person’s past.
A few companies provide this type of investigative service for a charge and will give full details about a person’s criminal history and eviction history. Usually, you can request these reports using a person’s social security number.
When requesting a background check, look for this information:
- Eviction History: A recent eviction is a red flag that the person is a bad renter. To be fair, you can ask for further details about the eviction.
- Criminal History: You shouldn’t consider someone with a serious or lengthy criminal record. Accepting a serious criminal could put you and other tenants in harm.
- Public Records: Any legal disputes will be shown in this type of record. A person who has been sued in the past for unpaid rent or other financial matters could mean financial instability.
Social media can also offer a glimpse into their character—public posts can sometimes reveal unprofessional or concerning behavior.
7. Call The References
To get a fair idea of how the potential tenants are paying rent, call their previous landlords. You can ask the tenant’s past landlords the following questions:
- Does the tenant owe something to you?
- Does the tenant ever fail to pay the rent on time? If yes, how often?
- Has the tenant brought any major damage to the rental property?
- Did the tenant cause any problems in the neighborhood?
To verify the potential tenant’s steady income, call his or her employer. Keep in mind that some employers won’t tell you the salary details of their employees. In that case, ask for the potential tenant’s recent payslip.
8. Make The Decision
Once you’ve made up your mind on who to accept as a tenant, contact and arrange for the signing of the tenancy agreement. Instruct the tenant to bring the right amount of money and how you want it to be paid (cash or check).
You must create a quality lease. There are a lot of people who would just sign a lease without reading through the details. Before signing, read the whole lease with the tenants. Clarify each term so both of you agree.
Now, this is where the final screening occurs. If a tenant disputes reasonable terms or shows resistance, it might be best to reconsider. A clear, mutual understanding lays the foundation for a smooth landlord-tenant relationship.
Handle Tenant Screening the Right Way With RPA
Tenant screening is a critical step in protecting your investment and fostering a positive rental experience. By following these steps—asking the right questions, verifying details, and conducting thorough checks—you can significantly reduce the risk of problematic tenants. Taking the time to screen applicants carefully not only saves you money and stress but also lays the foundation for a great landlord-tenant relationship.
If tenant screening feels overwhelming or time-consuming, Real Property Associates is here to help. With professional property management services tailored to your needs, we ensure your rentals are in capable hands. RPA is a property management company in Seattle that manages commercial or residential properties, like condos, apartment buildings, and smaller office buildings.