My husband and I have had a cute little rental house on the beach in California for the passed five years. There is a college near-by, lots of commerce, and no shortage of those who want to rent near the ocean, sounds easy right? Well, it hasn't always been simple, as we have had our share of not so savory tenants and have learned, over the years, to take the proper steps and precautions in screening potential tenants. The following is a list of things that will undoubtedly help the "beginner landlord" in his quest to find that perfect tenant.
- Always start with a complete and in-depth rental application that includes employment and employment history, as well as passed rental history. Make sure that each applicant knows an incomplete rental application will not be considered. Additionally, make sure that each applicant signs their application, as snooping around in peoples lives without a proper signature could get you in trouble.
- First impressions are important. I prefer to meet potential applicants at the property and once they've filled out a rental agreement I always write a little note as to my impressions. I find that my instincts serve me well in most cases and a couple extra minutes talking with someone in person is better than reading something off of an application only.
- Make sure to do your checking! It might seem tedious, but you absolutely must call and verify employment and call at least one passed landlord. Some people get full credit checks and even background checks on prospective tenants, and this might be necessary in some states or some areas, but at the very least you should do the phone work yourself.
- Ask the right questions. This goes with the above point, in that when you call a potential tenant's passed landlords, you must make sure to ask the right questions. You are interested in how they cared for the property, if they paid rent in full and on time each month, if there were any major "problems" that the landlord had with the prospective tenant, and I always like to ask if the landlord would rent to the tenant in question again; I find that some landlords are leery of saying something negative, but if you ask something straight forward like "would you rent to this person again", it is difficult for them to dance around the question.
- Narrow down your applicants and then call for a chat. I like to get down to five or six applications that I like and then give each person a call again to ask a few questions like "Do you plan to live here long term?", "Do you see any changes in your work situation in the near future?", "Tell me about your pets (if you're accepting pets), including their temperaments and problems you've had with them if any", "Do you have any special furniture like a water bed or a fish tank?", etc...this is the time to get any of your little questions cleared up. Remember to take notes.
- Once youve chosen a tenant, keep everything in writing... this means all your notes, each check that you have done, person that you have called, etc. Keep all this information in a file, you never know when it might come in handy!
In the end, if you do your "due diligence" in screening potential applicants, if you work the phones, make notes of your impressions when you meet in person, and do the necessary follow-up, you'll thank yourself in the long run.
The first tenants that my husband and I accepted in our rental property were the first who applied. We were so worried about getting our property rented and so anxious to get a deposit, that we rented to three college kids without doing any research on their histories, and while they didn't do very much "damage" to the property and they did manage to pay their rent, we have since learned that taking time to "screen" and weed through a larger group of applicants makes our lives much easier in the end!
