The tenant screening process is an important part of placing a good renter in your property. A tenant credit and background check is essential, but your screening process should go even beyond that. Today, we’re sharing three mistakes to avoid when you are screening for tenants.
Mistake No. 1: Making Credit Allowances
Never let a prospective tenant slide on credit issues. The credit report is the number one thing you have as security when you’re renting your property. Your tenant background screening must include a credit check, and good credit is very important. We cannot stress this more. Establish credit standards, and stick to them.
Mistake No. 2: Waiting for Payment
Once you screen and approve tenants, you’ll settle on a move-in date. But, do not let the tenants move in until they have paid with a cashier’s check. You want to receive this payment in advance, in full. Many times, bad tenants will move in without paying the full amount of the security deposit and the first month’s rent, and then the games begin. It could result in a struggle for you to collect all of what’s owed once they are already moved in. Get the money and the deposit in advance.
Mistake No. 3: Listening to Landlords
Don’t rely too heavily on the previous landlord’s recommendation. If a landlord has a particularly bad tenant, that landlord won’t necessarily tell you the full truth about the tenant’s status. They may not lie to you, but they won’t share all the details that you need to know. Instead of concentrating on landlord references, focus on employment and income qualifications. Those are the most important things, and they’ll tell you if the tenant will continue to have the resources to pay rent.