Having the right tenants is very important for a successful landlord. There are many warning signs that a potential tenant might be a problem, and some may not be obvious. However, with the proper screening techniques, you can identify potential issues before they even start.
There are several steps that landlords can take to avoid getting rid of bad tenants. These tips will help them spot potential problems before they even start.
Require a Formal Application
Before you start the screening process, make sure that the prospective tenant completes a rental application. This form will give you all the necessary information to make an informed decision regarding the property.
Follow FHA Regulations
Follow the Fair Housing Act. This federal law prohibits landlords from discriminating against potential tenants based on their race, religion, or other similar factors. It also requires them to follow the FHA’s code of ethics.
Confirm Legal ID
This form should include a section allowing you to check their identity. You can also require a copy of their photo ID to add to the application.
Run a Background Check
You should also conduct a background check to ensure that the person has no previous problems. This can help you identify potential issues if they have a history of destroying the property or skipping rent.
Run a Credit Check
Besides conducting a background check, you can also check a potential tenant’s credit history. This process requires the approval of the tenant and their Social Security number.
Get Previous Landlord References
Before you start the screening process, make sure that you thoroughly check the previous landlord’s name. Not all landlords will report problematic tenants to the authorities.
Meet In-Person
In today’s digital age, meeting potential tenants in person is essential. This will allow you to get to know them better and give you an idea of their personalities. This will also help you make an informed decision regarding your potential home.
Ensure Your Legal Paperwork Is in Order
Make sure you follow the FHA, and your rental application will also state what information you will use regarding the potential tenants. If you don’t have their permission, you may not use their credit report. Be upfront and explain how you will use this information to protect yourself from potential problems.
Provide and Enforce a Code of Conduct
You should also include a code of conduct in the lease or rental application. This should clearly state what’s expected of you and the tenant and explain everything. Make sure that the prospective tenant signs it.
Having a code of conduct and a proper screening process will help ensure that you’ll be able to find the best possible tenants for your property.