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Valuable Information about Tenant Screening

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Tenant Screening: Explaining Certain Screening Criteria

Tenant ScreeningIn order to safeguard yourself and your interests, you as a landlord, must devise and follow a strict set of screening standards when it comes to renting your property to prospective tenants. Why? Unpaid rent, late rent, damage to the property, neighborhood noise are just a few of the most common reasons. A standard must be set, but how? Most landlords effectively hold to the following criteria for tenant candidacy to help them discourage future hassle with troublesome tenants: rental history, family size, credit history, financial capacity, and also-criminal background. All of these factors are significant in defining the applicant as a potential tenant, but should also be considered in moderation.

 

  • The Rental History

One of the most telling criteria about a potential tenant’s reliability is what the nature and extent of their rental history is. The rental history shows that the applicant carried out rental agreements in the past in an acceptable and verifiable manner. This standard can be defined by what is absent in it. The standard should be devoid of inexcusable rent defaults, damage to property, infuriation of neighbors or the property owner and other contract breaches. The rental history standard denote whether there were any eviction proceedings, and the results of these.

 

  • Financial Capability

The financial capability is simply the ability of the prospect to meet the rent. As a landlord, you desire that a prospect will possess a comparatively secure income source to comfortably make the rent each month-even in times of emergency. In order to ascertain whether a prospective tenant will be able to make the rent despite times of financial wellbeing and setback, a rough multiplication of their monthly income times 2, 3, or 4 will tell you if they are financially capable. This should also be considered in conjunction with the job security and job nature of the applicant in question.

 

  • Credit History

Credit history is another of the significant standards one should use as a landlord for tenant screening, as it establishes the credibility of potential tenants paying their bills and doing so on time. This standard should be dealt with evenhandedly, since the rental obligation is normally seen as one of the most important financial obligations in a renter’s bills. Based on this, someone whose credit history has few dents could still be an exceptional tenant; and should not be necessarily turned away for such financial blemishes. This said, a long running track record of bad credit issues should certainly be considered as possible repeat behavior, and avoided.

 

  • Family Size

Another factor that should be considered in renting your property is what the family size of the applicant is, and if it is in keeping with the occupancy limit you-as the landlord-have already set. More people in a smaller occupancy can mean more damage, noise, and use of included utilities and services-and should be considered when renting. Moreover, a rental property should also be regularly checked on to make sure only that amount of people is living there.

 

  • Criminal Background Checks

It wasn’t until recently that including criminal background checks as a part of a tenant screening became more and more common. It is undeniable that if the landlord knows how to approach such a search; they can gain invaluable information on the possible criminal activity of prospective tenants. This said, many others opposed to including this standard as a means of screening, dispute the completeness of such a check, as there is no central information repository available to both the public and private companies. Of course, it is always to the discretion of the landlord conducting the screening.

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With the right tenant screening standards, the property owner has high chances of selecting the right tenant (s) to occupy the property. Also, the standards must comply with the prevailing property laws in the given state.  Check out the Consumer Bill of Rights.

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