Recent statistics show that 10.6 million Americans declare rental income on their taxes. For many American landlords, profiting from a rental property means choosing the best tenant. The only way to select a good tenant is by asking the right questions on your rental property application.
A tenant screening is a vital time to ask the right questions. That way, you can determine if an applicant is a qualified renter. You want to know that the applicant can afford the rent and meet legal requirements.
Here is what you should ask.
Contact Information
The first part of the rental property application is to ask for the applicant's full name, phone number, email address, and current address. This is how you can contact them later, but also how you can verify the applicant's identity.
Employment History
This includes asking about current and previous employers. It will help if you ask about their job titles and the length of time they are or were employed there. This will give you insight into their income source and their stability.
You want confirmation during the application process that if you select them, they can meet their financial obligation to you.
Rental History
Beyond their previous addresses, you want to understand details about previous residences that they rented before. This includes the dates they were a tenant. As a landlord, you want to know the types of properties they lived at prior and if the applicant has had past evictions at those locations.
Credit History and Background Check
In the application, you want all interested in renting your property to grant you consent to run their credit and background screening. You need permission to access these personal details by law.
For the credit check, you want to see that the applicant has a good payment history. Past bankruptcies can be a red flag, but complete a full tenant screening before considering it a deal breaker.
Background checks are essential for determining if an applicant has a habit of engaging in criminal activity. As the landlord, you are responsible for ensuring you rent to those who abide by the law and do not cause their neighbors trouble.
Illegal Questions
As a landlord, there are federal laws to consider. You cannot discriminate against applicants. This includes asking questions related to:
- Disabilities
- Family status (children under 18)
- National origin
- Race or color
- Religion
- Sex or sexual orientation
While laws vary by location, the best way to protect yourself from a potential lawsuit is to partner with a professional property management company to help screen applicants.
What to Ask on Your Next Rental Property Application
The most important part of choosing the right tenant for your rental property is having a solid rental property application. You must ask the right questions to get to the heart of the matter.
The better your application is, the lower the chances you will need to evict a tenant later. If you need help screening renters, it is time to contact the professionals at PMI Property Management.
That's because PMI Property Management sweats the small stuff. Our background lies in the details. Contact the professionals at PMI Property Management today and schedule a consult.
