Landlords: Checking out Potential Tenants
If you're the landlord of a complex in high demand, you have to
have high standards for your tenants. You don't want to rent to
any Joe Blow and then lose the building a month later because
he's been growing an "herbal garden" in the bedroom. In order to
avoid any complications with your new tenants, the background
check you perform should be extensive.
Typical rental applications look something like this... but if
your apartment or home is in high demand, you should have high
demands on your applicants as well. Don't be afraid to ask more
questions. Being a little nosy can save you from some future
stresses.
The sample application asks for current employment information,
but it's a good idea to request the previous employment
information as well. Sally may be a great employee at Buck's
Bar... but if she's only been employed there for a few weeks,
it's a good idea to contact her previous employer. Did she walk
out? Was she constantly late? Was she fired for inappropriate
behavior?
Likewise, you'll want the tenant's previous (not only current)
landlord contact information. If you only talk to your
applicant's current landlord you may hear nothing but wonderful
things, but that landlord may just be saying them to get rid of
the terrible tenant! The previous landlord, however, has nothing
to lose by telling you the blunt truth. Find out if the
applicant was consistent with payments, or if he or she caused
any trouble for the other tenants.
Ask about annual income. According to many property managers,
rent should not be more than 33 percent of income. If you do the
math, and it doesn't look like the applicant will be able to
afford rent, you should ask them about their plan. Robert Irwin,
author of The Landlord's Troubleshooter, Dearborn, asks
applicants bluntly: "Do you figure you'll be able to handle the
monthly rent payments?" Irwin explains that good tenants will
usually spout off how they plan to budget for the apartment.
It's still important to check out their finances through their
employer and credit history to find out if they're telling the
truth.
You may or may not want to include a question in the application
about whether or not he or she plans to get (or has) any pets.
If your tenant has 2 Dobermans and plans on moving into a 500
square foot space with no yard... you may not want to rent to
them. Not only could the large pets cause expensive damages or
stink up the apartment, but it