5 Steps To Find And Screen The Best Possible Tenants
By Paul Esajian on September 7, 2016
The area of the business that most landlords dread the most is finding new tenants. Not only can this be time consuming but it will also leave you frustrated. Even if you have a property manager you need to be involved in the tenant search process from start to finish. Who you rent to is too important not to know what is going on. Instead of shying away from screening you can make the process much easier. Take advantage of the increased technology that is available and use it to your advantage. A few simple tweaks in how you go about finding new tenants can change the way you view your rental property. Here is a five step process to help find and screen the best possible tenants.
- Get A Dedicated Website. With every rental property you own you should have a dedicated property website. This may sound outlandish at first but is actually much more practical than you think. The cost of having your own website for every property is more affordable than ever. There are numerous hosting and design companies out there that can set up a website for less than what you would spend on marketing. If you plan on having the property for some time this is something you can use with every new lease. With more tenants starting their search online this seems like a logical way to go. Not only is having a website efficient but it will make your life much easier. By having pictures and videos of the property you eliminate the need of having to travel every time a tenant wants to see the property. You can weed through tenants who simply wanted to compare it to other properties they may be looking at. A dedicated property website will provide information and help streamline the search process.
- Online Application. In addition to pictures and videos online you should also have a section for an application as well as frequently asked questions. Your goal should be to supply your tenants with as much information as possible before they step foot in your property. This also works both ways. You should have an icon or a section for them to supply you with information as well. If they are serious about the property they will take this step. You should know their employment & income as well as a series of additional answers to questions you have. You should know if they have ever been evicted, smokes or have any pets. They should be able to provide information for you to run a credit check if there is mutual interest in the property. You should not entertain any showings until you have enough preliminary information for you to make a decision.
- Tenant Walk Through. If there is interest from both sides you should schedule a walk through. At this point it should really just be a verification of what you supplied on your website. Before anyone sees your property you should stay on top of the exterior and make sure there aren’t any glaring issues. Even though your prospective tenant knows what the property is about you still need to put its best foot forward. During the walk through you should answer any lingering questions they may have and address any potential issues. If you have firm no pet or smoking policies you need to stand firm regardless of how lovely they may be. You need to go over any specific dates and requirements you have for the property. The more you can get on the table now the easier the rest of the process will be. After the walk through and assuming there is interest you need to lay out the next steps. Tell them you need to contact their references and if everything goes smoothly schedule a date to review the lease and collect the security deposit. If they balk at either of these you know they are not as serious as you thought about moving in.
- Call References. It is important that you know exactly who you are renting to. You need to reach out to the references listed and make sure the information on the application is correct. Your prospective tenant should be currently employed and have a high probability of staying at their job. There should be no lingering issues with their previous landlord or any past ones. Ask them if there were every any problems with collecting rent or paying on time. There is no guarantee that your tenant will always pay on time but calling all of the references listed gives you the best possible chance.
- Security Deposit/Lease. The final step of securing a new tenant is collecting the security deposit and reviewing the lease. It is a good idea to supply the tenant with a copy of the lease before you plan on meeting with them. This gives them time to come up with any questions they may have for you. Going over the lease is more than simply securing signatures and moving forward. You should go over the lease line by line so there are no misunderstandings. If you have anything with the property that is of great importance to you now is the time to address them. You also need to security the security deposit. While this is a good amount of money up front it is standard for every new lease and should not catch them off guard. By giving the security you know your tenants are committed to the property and want to live there.
The quality of your tenants directly impacts the success of your rental property. Use these five tips to help find and secure the best possible tenants for you.