One of the hardest things to do as a landlord is pick a good tenant, and if you have been burned by a bad tenant-you may be protecting yourself from a repeat performance and pass up a good tenant. Over the last decade, we have figured out how to pick a good tenant-by practice and trial & error. Of course as this still involves humans, there are still times someone is different than you thought they would be-and yet, as time goes on there are less and less evictions from tenants we have put in place.
Leasing itself is a Brokerage Activity, and is therefore handled by The Results Real Estate Group, but as soon we get to the tenant screening process-it is back to Preferred Property Management. When we get a tenant to screen he/she comes with the following leasing packet:
Part 1: The Application & Lease File
Leasing itself is a Brokerage Activity, and is therefore handled by The Results Real Estate Group, but as soon we get to the tenant screening process-it is back to Preferred Property Management. When we get a tenant to screen he/she comes with the following leasing packet:
Application To Lease: 1 per adult (18 years and over)
Cover Page: 1 per party-this gives a quick idea of the family make up that would be residing there.
Proof of Income: This would be paychecks-showing us if they can afford the home.
Proof of Funds: This would be bank statements-showing reserve, especially move in funds.
Credit: A copy of the credit report or the ability to run credit.
Drivers License: This is needed per adult, but also important to have on file.
Similar to applying for a job, any other documents you want to include will strengthen your application versus someone else. Often times we have received cover letters and family photos. The application will have the bulk of the information: contact, addresses, job, and pets. Cover page tells you all residents and ages. Proof of income shows if they can afford it. Proof of funds not only shows if they have enough reserves to move in, but a brief snapshot of how they spend their money. Credit reports are often one score, so it is suggested to ask for a 3 score report or offer to pull it yourself. Drivers license is important to have on file, in case you need to take action against them.
Part 2: Interact with your potential Tenants
This is as important as the application. If you can, attend the lease showings or attempt to meet up with your potential tenants once. As well as call them to go over the application with them over the phone. Talking to them you can get a feel for the person you are reading on paper and seeing them will confirm or deny any major suspicions you may have had about them after reading them on paper. The other thing to consider is, does their story make sense? Why are they moving? Where were they before? Are they running from a landlord they screwed over or just trying to get their kid into the local high school?
When we present potential tenants to the owner, we present them as a whole. Bad credit does not necessarily mean bad tenant, maybe more risk but their income may cover said risk. One may be more qualified, but the other tenant may be a better profile for the home. Each application is different and each home has a different perfect tenant profile. Let us know if you have any questions about picking the perfect tenant!
DRE#01848133-P: 949-864-6982 -E:preferredmanager@gmail.com-W: www.preferredmanager.com-Facebook-Twitter
When we present potential tenants to the owner, we present them as a whole. Bad credit does not necessarily mean bad tenant, maybe more risk but their income may cover said risk. One may be more qualified, but the other tenant may be a better profile for the home. Each application is different and each home has a different perfect tenant profile. Let us know if you have any questions about picking the perfect tenant!
DRE#01848133-P: 949-864-6982 -E:preferredmanager@gmail.com-W: www.preferredmanager.com-Facebook-Twitter
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