Why Landlords Should Screen Renters During the Application Process
 

Perhaps you’ve got an investment property that you’re super excited about. You’ve put the time, money, and resources towards the next step to financial freedom. There’s just one thing standing in the way of everything going smoothly, you need a qualified tenant who pays on time. Seems like a no-brainer right? But this is the single most crucial step in running a successful investment property. To find an ideal tenant it’s imperative to take the time to screen renters during the application process. There are multiple reasons why.

It’s a Business Decision

Your investment property is there to make you money. Therefore, everything you do with it should be conducted in a manner of making the right business decisions. With a property and mortgage on the line, there’s no room for error when it comes to finding the right fit for a tenant. The screening process makes it easier to narrow down who would be a safe, clean, and responsible tenant to reside in your investment property. 

Protect Your Wallet

There’s no doubt that you’ll want a qualified tenant who will make payments on time. The cost of an eviction can leave you having to deal with $10,000 in legal fees and court costs. Being footed with such a hefty bill has left countless landlords bitter, frustrated, and with less money. Screening potential tenants can leave out the guessing game of who’s qualified and who’s not. 

Feel Like Sherlock Holmes

At the bare minimum you should collect the following from a potential tenant:

• Income
• Tenant History
• Employment
• Credit Score
• Legal History

Gathering different pieces of a person’s history and lifestyle will help you make a rational decision. Collecting a person’s income will help determine if they will be able to even afford rent. The income to rent ratio (by industry standards) is income that's three times the rent. Viewing a person’s tenant history will help you see how they’ve done in the past with previous and current landlords. By contacting the tenants employer you can ask further burning questions. A credit score will help you see how financially responsible your potential tenant is. Finally, uncovering the tenants legal history is essential and in some states running a background check is permitted by law. Each part of the screening process is like gathering clues and information from a person’s life that will help you make your choice easy during the application process. 

To put it simply, don’t skip screening your potential renters! What might seem time consuming, is rendered efficient through using Screen Renters. By using our software landlords can receive tenant applications, background checks, credit score, criminal, and evictions reports with the click of a button. Screen Renters will leave you with peace of mind by saving thousands of dollars in 10 minutes or less. We help streamline the rental process with online rental applications and tenant screening in one place. Running your investment property has never been easier.