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.