Not sure how to find a good tenant? Or how to look out for the bad ones?
Make sure your rental applicants check off these 4 requirements:
1. Good Credit
For starters, one thing to look for when looking for a good tenant is a good credit score. A good credit score shows that the applicant can handle financial responsibility. During an application process, you should run credit reports on any individual that will be listed on the lease above 18 years of age.
You can run credit reports on your applicants through Tenant Report during the application process at no cost to you. An applicant’s credit reports will help you determine if the applicant has a history of making payments on time or not.
2. Steady Income
When looking for the right tenant for your property, you want to look for a few different specifications in regard to the tenant’s income. In order for a tenant to pay rent and pay it on time, they must have a stable income.
Verify that your applicant has a steady income, that will be sufficient enough for paying rent. You can do this by asking for their three most recent paystubs. Applicants whose income is 3X that of the rent are more likely to be able to afford to pay rent monthly with extra room for other expenses.
However, you need to factor in any debt that the applicant has before determining whether the applicant’s income fits your requirements.
3. No Criminal Background
You need to check every applicant’s criminal history. Before leasing any property be sure to run a tenant background check. Not only should you run a background check on the applicant but any person living in the household.
Be sure to get a copy of every tenant’s ID and double-check that the information that they are providing is accurate. Many screening companies also only process statewide searches, so be sure to check the applicant’s criminal background nationwide.
Tenant Report offers a comprehensive reporting solution that includes information about an applicant’s criminal and civil background history.
4. Positive Rental History
You should also get information about your rental applicant, like where they are relocating from (and why). Asking applicants for references from previous landlords is also a great idea and should be part of your process.
Calling at least two of their recent landlords may help you dodge a bullet. Asking previous landlords questions may help you find vital information you otherwise may not have found. On top of that, doing a tenant background search on previous rental units is important in finding out if the tenant had been evicted in the past due to unpaid rent or destruction of property.
Adding Tenant Report into your applicant screening process helps mitigate a large amount of risk, giving you the information you need to make the best decision possible — at NO COST to you!
Explore our rental applicant background reporting: