Basic Elements of the Residential Rental Application Form
A completed rental application is important, as it will go a
long way to helping any landlord, or property manager, through
the tenant screening process. The information provided will be
of great assistance to you, as you determine which applicant is
most suited to occupy your rental property.
Whether you choose to use a pre-drafted rental application form,
or if you prefer to draft one yourself, there are specific
elements that all landlords must ensure are covered within the
form. Name and current address
It seems obvious, but do make sure the applicant provides their
full name. Initials or nicknames are unacceptable. One of the
main reasons you will need the applicant's, full and legal name,
is to perform any due diligence on them, such as background
checks.
Social Insurance Number (Canada) / Social Security Number (USA)
In Canada, only certain government departments and programs are
authorized to collect and use the Social Insurance Number (SIN).
However, there is no legislation that prohibits a landlord or
property manager from asking for it.
Canadian landlords should remember that unless you can
demonstrate that the applicant's SIN is required by law, or that
no alternative personal identifier suffices, the applicant is
protected under Canada's Personal Information Protection and
Electronic Documents Act (PIPEDA), and does not have to provide
you with this piece of data.
In the USA similar rules apply in regards to the Social Security
Number (SSN). In 1974 Congress passed the Privacy Act which
attempts to limit the use of the number to only those purposes
where there is clear legal authority to collect the SSN. It was
hoped that citizens, fully informed where the disclosure was not
required by law and facing no loss of opportunity in failing to
provide the SSN, would be unlikely to provide an SSN and
institutions would not pursue the SSN as a form of
identification.
At the moment, in the USA, landlords are also not prohibited
from asking for the SSN.
Keeping the above in mind, if you plan to run background or
credit checks on your applicants, it will be quite useful to
have the applicant's SIN/SSN. For example, having an applicant's
Social Insurance Number / Social Security can help avoid
confusion if your applicant has a common name.
Of course, prior to running these checks, you will need to have
the applicant's permission.
Take this opportunity to explain, to the applicant, how the data
will be used for the purpose of a background check. A serious
applicant will be more than willing to supply you with this
information.
Names of other tenants planning to live on the property
If your applicant plans to have roommates or family members
share their dwelling, it's important to have the applicant
provide the names of these co-occupants on the rental
application.
The prospective applicant should also describe his/her
relationship to these people, as in "family member" or
"roommate."
Rental or residence history
A section should exist for the applicant to list their current
and previous two residences, as well as the correct address and
contact information for their landlords.
This information is very important, especially if you are
planning on conducting further background research on this
prospective tenant.
Also, asking your applicant why they left their previous
residences is a good idea. Be cautious if the applicant states
frequent disagreements with more than one landlord.
Were the landlords provided with proper notice? What were the
dates of their residency? Were they ever evicted or asked to
leave a property?
A "yes" to that last question should automatically make any
landlord extra cautious. Be careful.
Employment history
An applicant's current and past employment history, as well as
their current wage, is very important. Too often a landlord will
only care about current employment and wage. That is a mistake.
Some knowledge regarding an applicant's employment history can
offer landlords valuable insight into the individual. For
instance, it can help you spot such problems as, the inability
to hold down a steady job, which could indicate that they are a
bad risk, as a tenant.
With the current employment data, you can determine if your
applicant will be able to afford the monthly rental payments for
your property. For example, many landlords prefer to have a
specific maximum percentage of their tenant's income for the
rent payment, such as 30 percent.
Using a 30 percent guideline, your tenant would need to make
$1200 a month if you are charging $400 a month for rent.
Remember, that although an applicant's current job may pay a
high wage, if the individual doesn't stay in the same job for
more than a few months at-a-time, you may find yourself with an
unexpected cash-flow problem... Or worse.
As a landlord you owe it to yourself to get the best possible
tenants for your property. Do not under estimate the value a
prospective tenant's employment history will provide you, when
deciding on who qualifies for the unit.
Current vehicles
If you have limited parking, this section can help reduce any
future issues with excessive use of parking spaces. The
applicant should describe the make, model, and license plate
number of the vehicle owned by them, and those of their
co-occupants.
This data may also come in handy when determining if your
applicant has roommates or has sublet your property without your
permission. If you notice strange vehicles consistently parked
on your property, refer back to this section of the application
to check the tenant's license plate information.
If the applicant and any other occupant owns a car, 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 and attach to the application.
References and emergency contacts
The applicant should provide, for each reference, a full name,
current address and phone number. Ideally three references would
suffice, but you may ask for more.
Getting emergency contact information is also quite important.
Not only in case of an emergency, but this data can assist you
in tracking down a tenant that has not paid their rent or
breached their lease.
The rental application may also contain a section where general
information can be provided.
These questions can include whether they have ever been served
with an eviction notice or late rent complaint, when they plan
to move in, or other useful information.
Please note, consent, is very important. Make sure the applicant
understands your intentions concerning the information he or she
has provided on the residential application form.
With that in mind, it is important to include a paragraph or
two, within the application, that grants you permission to use
the information, provided on the application form, to conduct
any type of background check.
Have your applicant initial (or sign) this paragraph to prove
that they were made aware of your intentions, and of course,
make sure the prospective tenant signs, and dates at the bottom
of the residential rental application.
Asking the right questions on your rental application is a must.
It will assist you in selecting the best applicants for your
rental property.
The information contained within is vital to your business. If
an applicant doesn't complete, in full or to your satisfaction,
the rental application form. Toss it.