- Adhere to the law.
All potential tenants must be treated fairly by landlords. The Federal Fair Housing Act is a piece of legislation that forbids discrimination against specific groups of people in any housing-related activity. You are not allowed to discriminate based on:
- Color or race
- The country of origin
- Religion
- Sex
- Family background (families with children)
- Disability
Additionally, many states have their own Fair Housing Regulations that you must go by, so be sure to be aware of and uphold any local laws that may exist.
- Pick a renter with solid credit
You should look for a financially responsible tenant. There is a good possibility they will pay their rent on time and take care of your unit if they are responsible with paying their bills. There is a price associated with getting your credit checked, and occasionally landlords ask prospective candidates to pay this fee as well. An examination of a tenant’s finances involves two steps:
A. Check Thier Income:
The ideal tenant will have a monthly income that is at least three times the rent.
Request to get a copy of their pay stubs.
To confirm their employment, tenure, attendance history, and monthly pay, contact their employer directly.
B. Perform a credit check
Do they have a track record of making on-time bill payments?
Verify their debt-to-income ratio.
You must take into account their debt load even if their income is three times the amount of their rent every month. For instance: The monthly rent is $1,000. Despite earning $3000 per month, Tenant A must pay $2400 in debt each month. Despite their monthly income, this tenant may find it more challenging to afford the flat.
- Carry out a criminal history investigation
Criminal records are available for public inspection at several courthouses. Both serious and insignificant violations will be discovered by this screening. To run one, you will need the tenant’s name and birthdate. Because people with criminal histories may attempt to misrepresent this information, always check a genuine ID to make sure the person is who they claim to be.
A Complete Criminal Check Will Contain:
Federal Court Record Search
A Statewide Criminal Record Search
A County Criminal Court Search
A Department of Corrections Offender Search
Sexual Offender Database Search
Three Things to Avoid:
- Landlords are not allowed to discriminate against tenants who have certain criminal records in some states, including California. A potential renter who has been convicted of a violent or drug offense may be more easily rejected by a landlord than a tenant who has received 50 moving violations. This is due to the possibility of narcotics or violent crimes endangering the security of other tenants.
- Since there is no national database of criminal histories, doing a complete background check may be challenging.
- Self-performed criminal background checks might take a lot of time. It could be advisable to have this check done for you by a trustworthy tenant screening business. For an additional cost of course, it can frequently be paired with the credit check.
4. Look at the Tenant’s Rental History
Talk to at least two of the tenant’s former landlords if you can. This is due to the possibility that the current landlord would not be completely honest if the applicant was a problematic tenant and just wanted the renter off their hands.
Questions You Should Ask:
- Was the rent paid on time by the tenant?
- What motivated the change of location? Was the tenant kicked out because of unpaid rent or because they didn’t follow the landlord’s rules?
- Did the tenant provide a 30-day notice before moving out?
- How did they maintain their residence? Were they tidy?
- Other than typical wear and tear, did they cause any harm to the apartment?
- They treated their neighbors with respect, right?
- Did they frequently complain?
The applicant may not have a rental history if they are a first-time renter, a student, or a recent graduate. You may need a co-signer for the lease in this situation.
- Select a dependable tenant
Check the applicant’s past addresses and employment history from their application. Do they frequently move or change jobs? If they relocate frequently, this tendency is likely to continue, and you’ll soon find yourself in a similar situation. If they haven’t demonstrated reliable employment, they could not be able to finance the apartment in three months, forcing you to start the tenant search process over or face an eviction. - Only two people at most per bedroom
There will be more noise and damage to your investment as there are more people living in each apartment. Despite the fact that HUD does not have precise regulations governing the number of occupants per bedroom, the Fair Housing Act considers a limit of two people per bedroom to be fair, with the following exceptions:
- State and local laws: The landlord is required to abide by any special housing laws that the state or municipality has.
- Size and Layout of Dwelling: A bedroom with 500 square feet can accommodate more people than a room with 250 square feet.
- More people can live in a home with a living room and a den than one without.
- Age and Number of Children: It could be discriminatory to refuse to rent a one-bedroom apartment to two adults with a baby, but it would be fair to do so if the applicants were two adults with a teenager.
- There is no limit on the number of individuals who can live in an apartment, however there is a limit on the number of kids.
- Follow Your Gut Feelings
You can perform all the screening you want, but sometimes you need just trust your gut. You can have a strange feeling about a tenant, even if they appear to be a good fit on paper. Later, it was discovered that the tenant had applied for the apartment using someone else’s identity. Trust your screening but pay attention to your instincts as well.