10 Tips for Screening Potential Tenants of Your Rental Property

As a landlord, having the right tenants makes all of the difference. There are many warning signs of problem tenants, and some may not be immediately visible. Repeat offenders are used to getting by landlords, and you cannot always rely on gut instinct or your first impression when dealing with a potential tenant. There are specific steps that you can take to avoid terrible tenants. There are ten recommendations that landlords can follow to weed out possible problem tenants ahead of time.

Make the prospective tenant fill out a rental application. The first step is composing a written rental application. A completed rental application will give you the relevant information you need to make a decision to rent the property. See a sample Residential Rental Agreement.
Follow the Fair Housing Administration Act (FHAA). The best way to make sure you do not discriminate against potential renters is to follow the FHAA. This act is in place to make sure that landlords are not denying someone the ability to rent property based on race, religion, or other qualifications. In order to avoid claims of discrimination, adhere to the FHAA's code of ethics for landlords.
Get proof of identity. Insist on seeing a valid photo identification card from your potential tenants. The rental application should include a section to write down the driver's license number. Make a photocopy of the photo ID to attach to the application.
Perform a background check. Checking up on your potential tenant's past may not be fun, but it can help ensure that there are no pre-existing problems lurking underneath the surface. If your potential tenant has a history of skipping rent or destroying property, you may be able to find this out through a background check.
Perform a credit check. In addition to a background check, you can check a potential renter's credit history. You will need to get their permission in writing as well as their Social Security number to perform this check.
Get the name of the previous landlord. Not al landlords report problem tenants to the authorities, so it's a good idea to follow up and check with their former landlord.
Ask for character references. Ask for references -- and actually check with them. Not all applicants will give you "real" references; so following up is essential.
Meet your prospective tenants in person. In our busy world, many people are switching to digital communication and phone meetings. However, it is important to take the time to actually meet face to face with your potential tenants. This will help you get an idea about their personalities and go a long way towards making a lasting relationship.
Protect yourself. In addition to following the FHAA, your rental application should state what you will do with the information that your potential tenants provide. If you do not have their permission to run their credit report, you may not do so. Be up front with all that you do and you will be protected from future allegations of impropriety.
Include a written code of conduct with the rental application or written lease. This should clearly state what is expected of your tenant and yourself, and will allow you to make sure everything is clearly explained.

By covering all your bases, you can help make sure that you will not only have the best tenants for your rental property, but that your rights and the rights of your potential tenants are being protected.

For more information about Medley Landmarks or any of our investment properties, please contact us.