Tenant screening is critical when you have a rental property. You want to find tenants for your property who will pay rent on time and take good care of the home. Today, we’re sharing some of the things we look for when we’re screening tenants at Land of Enchantment Realty and Property Management.
Property Management Albuquerque: Credit and Criminal Checks
You’ll need to establish a rental criteria, which you apply to all applicants. That criteria should include credit. Check credit so you know if an applicant owes any previous balances to a mortgage company or landlord. You’ll also want to know what their debt ratio is, and if they have anything garnishable on their credit report like tax liens or outstanding student loans. Next, do a criminal background check using public records. Make sure you don’t find any history of drug charges or violent crimes. Those are the strongest reasons not to rent to an applicant. You’ll also want to check the sex offender registry, which is also public record.
Property Management Albuquerque: Rental and Employment Verification
Next, verify their rental history. Talk to current and former landlords so you can make sure they have paid rent on time and haven’t had any notices posted for nonpayment of rent or noncompliance with the lease. Ask if any property damage was left behind at the home. Verify income as well. The rule of thumb is that a good tenant will earn at least three times the monthly rent.
Once your tenant has met all your criteria, you can decide if you want to approve or deny the application. If you’re not going to accept a tenant, you have to send documentation explaining what part of your rental criteria wasn’t met. If it’s because of credit, you have to give the applicant an opportunity to contact the credit bureau themselves.
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