As a real estate investor, you may decide to self-manage your property and find your own tenants. You’ve advertised your property for rent, shown it to a number of prospective tenants and they’ve submitted application forms. Here are some tips that may help you through the screening process of finding good tenants.
Once the prospective tenant(s) submit an application form, the first step is to call his/her landlord. If possible, obtain contact information for the previous landlord because you will speak to someone who is non-biased. A current landlord may not be a good referral if he is motivated to pass along a problem tenant. When contacting the landlord, you may want to pose as a tenant yourself and inquire if he has any available units for rent. This approach will help verify if the applicant provided a legitimate contact. When speaking to the landlord ask some questions to verify if the information is consistent
with the information on the application form. Some questions you may want to ask the landlord:
- How much rent was the tenant paying?
- How long as tenants?
- What are the reasons for leaving?
- Has he/she ever had late payments?
- Can you verify his/her occupation?
- Would you recommend the tenant to other landlords?
After speaking to the landlord, call the applicant’s employer to verify his employment. Again, ask questions to ensure that the information on the form is consistent:
- Length of employment?
- Full-time/part-time?
Consider using
TenantVerification.com to obtain a credit check on your prospective tenant and learn about his/her tenant history. Be cautious about applicants who don’t ask a
lot of questions themselves. If they appear too “easy-going” then it’s likely that they will also underestimate the seriousness of the agreement. Also, be wary of last-minute applicants. It’s better to accept tenants that are organized and plan ahead. That way, you are also likely to avoid the “professional tenants” that like to take advantage of landlords. Avoid tenants
that seem to criticize and haggle — it will avoid a lot of future headaches.
Once you approve an applicant, always askfor the first month rent and security deposit as cash, certified check, or bank draft tosecure the agreement. It’s reasonable to ask to receive payment within 48 hours upon approving the application even if they don’t plan to move in right away. You can provide the signed rental agreement and a receipt as soon
as you receive the payment.
You have probably seen the movie The Secret, produced and directed by Rhonda Byrne. Did you know the book that inspired her to create the movie was published in 1910? The Science of Getting Rich is a success classic that was written by Wallace D. Wattles and is a philosophy of Mental Science (or Mind Science). The book also inspired Think and Grow Rich (written by Napolean Hill) and preceded the New Thought movement. A very powerful book.
