Saturday, October 17, 2009

Tenant Screening

The single most important job of  a landlord is  tenant screening.  So many problems can be avoided by putting the right tenant in a property.  Where do you start checking out the tenants?  The first thing is have a good application and then question every answer on it.
  1. I rely heavily on past landlords.  They can answer questions about payment history, houskeeping, and problems.  A good question to always ask is:  Would you rent to them again?  I always get at least 2 landlords or the last 5 years of landlord history.  If they can not provide anyone but family, that's a red flag. 
  2. I call the water department to see if they are current and how many times the water has been turned off or late paid in the last 12 months.   
  3. I call the car insurance company.  It's the law you have to have insurancea on your vehicle.  If they do not have insurance there is another red flag
  4. NEVER EVER work with them on the damage deposit. 
  5. Pro- rate partial month's rent but do not prorate the first month.  Give them the credit on the 2nd month.
  6. If they can not produce any one nor any business for a credit reference, you guessed it-  red flag.
  7. Verify income by looking at a current pay check stub.
  8. Verify all government payments thru bank statements, government letters, or by phone.
  9. A quick phone call to the police department sometimes will give you a heads up on their life style.
  10. Call other landlords to see if they recognize the name.
Even after doing all of this, you may still get tricked.  But you also may get a good one!

Happy Landlording!

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