Tenant Selection – The Process – How does a landlord select the right tenant?

The basics

* All applicants over the age of eighteen must complete, sign and date an application

* All applicants must provide current photo identification such as a driver’s license

*Spouses must be considered as separate applicants for the rental process

* Please be aware of local laws on discrimination and fair housing. Do not write on the application or make any notes that could be construed as keywords or trademarks used to distinguish protected classes.

* Date and time stamp in all applications. Process them in the date and time order received to maintain objectivity.

* Make sure it’s signed, that’s where the applicant gives their permission to do a credit check and background check.

* Have the application signed in your presence. Check the signature against a driver’s license.

* Use the same selection criteria for all

* Do not accept incomplete applications

check

* Verify application signature with photo ID

* Run a credit check and we suggest you purchase the FICO score, eviction report and social security check. Any discrepancies or negative reports here are red flags. Remember, you will have to deal with this person for a long time. OFAC or Terrorist Screening is now mandatory.

* If you are renting commercial space, you may want to consider a business-to-business report as well as an owners credit report.

* Many applicants do not have a social security number or credit history. It will be difficult to get a credit report without this and you may have a legitimate reason to reject this applicant without giving thought to the character of the applicant, if you require credit reports on all applicants. You can also try to solve this problem by applying for an in-state guarantor.

* Always be aware of fair housing laws, as well as state and local laws.

* Consistency in applying your rules is key to staying within the guidelines.

* Verify employment income using pay stubs and previous tenancy with landlords

* Use the tenant screening checklist available at http://www.yourpropertypath.com

Approval or Rejection

If applicants are approved, you can notify them by phone or letter. Be sure to confirm rent, move-in date, and security deposit.

Schedule an appointment to sign the lease, and be sure to give yourself plenty of time to go over the house rules and discuss any issues that may require written addendums before signing. After a properly signed lease is completed, the security deposit is paid, and the first months rent is paid, you can hand over the keys to the new tenants. Use the signing of the lease to establish a friendly relationship with clear expectations of the responsibility and obligations of the owner/manager and the new tenants.

If the tenant is denied, a denial letter can be sent along with the applicants rights regarding a credit report. Many credit reporting agencies will offer a tenant denial letter or you can use the one on our site.

Howard Bell for yourpropertypath.com