tenant screening process

4 Steps for Conducting a Thorough Tenant Screening

January 11, 2022

Investing in real estate is one of the best ways to create a steady income. However, it’s important to note that you can only achieve this goal by finding the ideal tenants for your property. Finding the right tenant for your property can be a challenging process. Nevertheless, there’s a simple tenant screening process that you can follow to ensure you have the right occupants for your property.

How to Properly Screen Your Tenants

Step 1- Determine Your Rental Criteria

Before you start, it’s vital to determine what your rental criteria is for finding the right tenants. By doing this you’re able to create an ideal tenant in your head and base your search on this.

Your rental criteria can be based on several things, such as their:

  • Credit score
  • Employment
  • Background check
  • Income

Ideally, you’ll want someone with a credit score no lower than 650. For highly desirable or expensive areas you may want to require a score even higher than that.

Lastly, you can also set some basic rules regarding owning pets and smoking.

Step 2- Conduct the Tenant Screening Process

After establishing your rental criteria, it’s time to start accepting applications.

You can ask your potential tenants to list a few basic details for verification, such as their:

  • Name
  • Contact details
  • Date of birth
  • SSN
  • Driver’s license number
  • Current address
  • Other necessary information (who will live with them, do they own pets, why are they moving, past evictions, etc.).

Step 3- Conduct a Background and Credit Check

Conducting background checks is the most important part of finding the right tenant for your property. Once you’ve narrowed down your list of potential tenants, you can run a background and credit check to find out about their financial and criminal backgrounds.

An applicant’s financial situation can determine how likely they are to pay their rent. For example, you need to look into how much debt they have, any missed credit card payments, and their credit history. In addition, you need to check their criminal record, you don’t want to put the people in your neighborhood at risk.

Step 4- Choose the Right Tenant

Once you have all the details you need, now you can move forward and select your preferred tenant. It would be wise to also have a second or third option in case the deal falls through with your first one. Once one has been selected, let them know your expectations from them and go over the lease agreement. Once they sign the lease you’re done and you can hand the keys over!

Final Takeaway

When finding the right tenant for your property, you must follow these steps. This will help you avoid any potential problems and headaches down the road. You can keep your mind at ease knowing your property is being well taken care of.