Some tenants are going to be better than others. That’s just a fact of life. And no screening method is going to be absolutely perfect. But most important of all, there are a number of key factors that you can use that will help you find the right tenant perfectly suited for your rental. We’ll look at some tips below to help you make this choice.
How to Select Tenants Like a Pro
Key Factor #1: Treat All Tenants Equally
First and foremost, you definitely have to follow the law when searching for potential tenants. Discrimination will find you in hot water because the Federal Fair Housing Act was specifically created to prevent this from happening.
Never discriminate based on a person’s sex, religion, color or race, national origin, disability, or familial status. In fact, learn about the rules in your own state and follow them to the letter. Otherwise you’ll be breaking local laws and you can find yourself in serious trouble.
Key Factor #2: Run a Credit Check
When it comes to choosing good tenants, one of the most important things to look at is whether or not they have good credit. By running a credit check, you’ll determine if they are responsible and pay their bills on time and you’ll know if they seem like a good fit to become your tenant.
First, spend a moment to verify their income. In a perfect world, you’ll be able to find a tenant that makes roughly 3 times more than their rent per month. So ask them for copies of their pay stubs and make a direct call to their employer to find information about their monthly earnings, determine if they show up for work regularly and on time, and see how long they’ve been employed with that particular company.
Next, running a credit check is crucial to finding a good tenant. When you run this check, check to see if they pay their bills on time and look at their debt to income ratio. If their debt to income ratio is out of whack, they could end up being a poor tenant and that is something you’d obviously rather avoid.
Key Factor #3: Execute a Criminal Background Check
Last but certainly not least, it’s important to check each person’s criminal history. You need to look for minor offenses and serious ones too. So ask the potential tenant for their date of birth and name and run a federal court search, a statewide criminal records search, a search with the Department of Corrections, search the sexual offender’s database, and run a criminal court search with the county in question.
For some people, running a criminal background check on their own is going to be a very time-consuming process. If that’s the case for you, look for a company that specializes in tenant screening and let them handle the background checks on your behalf.
The last thing you want to have to do is evict a tenant. That process is painful, costly, and a waste of time. As you can see, finding the best tenant for your rental unit is certainly possible. Use the information shared today and you’ll have no trouble choosing the ideal tenant to meet your needs.
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