Owning rental properties can be a great way to grow your assets and secure consistent income. If you recently purchased a rental home or apartment, it’s time to find the right occupants so you can start reaping these benefits. But first-time landlords may find it tricky to effectively screen potential tenants.
So, what should you look for in a rental application form? This guide will break down some of the most important criteria that landlords should look for in applicants. By having specific standards, you can ensure that your tenants pay their rent on time, honor their lease, and cause few conflicts.
One of the main criteria that landlords should look into is the applicant’s credit standing. A good credit score indicates that the applicant can handle their finances and pay their bills on time. Keep in mind that you need to pay to check your applicant’s credit, so consider charging a credit check fee with the rental application.
As part of this financial screening, you should ask for proof of income. Then compare their income to their outstanding debt. All of these factors can indicate whether they will pay their security deposit and rent reliably and on time.
You should run a background check on all of your rental applicants. You can likely outsource this screening to a background check company. Once you get the results, look for a history of evictions and other landlord-tenant law violations. Check whether they have any legal trouble for unpaid fees like child support.
You may want to reject applications with a history of frequent legal trouble, especially if it relates to drugs, violent crimes, and theft. However, be sure to check with your states laws before rejecting an applicant based on criminal history. Some states restrict …Read More →