~How Do You Screen Your Tenants?~
What are some of the more seasoned investors ways/steps to screening a prospective tenant?
1) Credit Check
2) Calling Previous Landlords/References
3) Verify income/job
4) Anything else?
Sometimes the references and 'so-called' previous landlords are not reliable or may not be who they say they are. I've heard of something regarding reverse address search or something of the sort??
Any other tips, suggestions, or advice would be great! TIA for your replies.
-Leo
The book "landlording" has a great section on this.
Check with your local apartment association.
As for reverse lookups, check out:
http://www.freeality.com/findrev.htm
Some advise to call the phone numbers once and act like you got a wrong number so that you can say "what residence is this?" Never done it, but I supose I would if I felt that I needed to.
Do any of you use particular websites for the credit check?
What questions do you ask their references and previous landlords?
theres a great website that will do credit checks and tenancy history for a nominal fee. its****Must Reach Senior Investor status before posting URL's***. if this doesn't show up email me and i'll forward the url.
i too recommend the book "landlording".
nolo press also has a book on this subject regarding your legal responsibilites.
nira: You have mail.
I never call the previous landlord as it is very common for a landlord to promise a good reference in exchange for a quick move-out.
Usually just telling them that you will do a credit check will bring out everything you need to know.
I've also noticed that tenets will usually bring up things I didn't even ask them. I consider this a red flag. For instance, one perspective tenet offered, "I've never been evicted" Now why would he say that? I didn't ask, and wasn't a part of the conversation. He was pre-lieing. Tossed out his application and pocketed the $50.[ Edited by SavvyYoungster on Date 08/21/2003 ]
I found a wealth of information right online in public records! I also went to the Sheriff's Dept. with full name and birthday, and for 2.00 they pulled up criminal history (if there is one)
Hope this helps.
I get them to fill out the following form.
This alone will usually eliminate "professional tenants"
I do a credit/tenant check.
My local property managent assoc.
will do a credit check and do a search to see if they have been evicted before, for the low price of $20. I dont trust the tenant background check 100%, but its an excellent service.
Here's the basics of my
RENTAL APPLICATION & VERIFICATION
Date: Rental location: Unit #:
Rent per month: $____ (Due and Payable the First Day of Each and Every Month)
Total Due Upon Acceptance:$______ (First and Last)
Term of Lease:
PERSONAL
Applicants Name:
Current Phone #:
SIN# Drivers Lic. # DOB:
List all persons to be occupying the premises (Including children, relatives, co-residents)
Name Age Relationship
Pets: Yes No If yes, specify:
Present Address:
Present Landlord:
Landlords Phone:
Reason for leaving your current residence:
Previous Address:
Previous Landlord:
Landlords Phone:
Have you, or co-occupants ever broken a rental agreement or lease:
If yes, explain:
Have you, or co-occupants ever been evicted:
If yes, explain:
Have you, or co-occupants ever been sued for non-payment of rent, or damages:
If yes, explain:
List all vehicles to be parked/stored on the premises by applicant and any other co-occupant: year/make/model/license
EMPLOYMENT
Employer/Address/Phone/Position/How Long/Gross Income
Applicant
Spouse/Co-occupant
Are you presently receiving Social Assistance: Yes No
Are you presently receiving Employment Insurance: Yes No
Are you presently receiving other non-employment income: Yes No
CREDIT/BANKING
Bank Name/Branch Address/Acct Type/Account #/Approx. Balance:
Would you consider using post-dated cheques as payment: Yes No
Would you consider using pre-authorized direct withdrawl: Yes No
Persons to Notify in Case of Emergency
Name: Phone: Relationship:
We will not discriminate against any person in the lease of a rental unit because of race, colour, religion, national origin, sex, age, familial status, sexual orientation or mental or physical handicap.
APPLICANT HEREBY AUTHORIZES VERIFICATION OF ANY AND ALL INFORMATION SET FORTH ON THIS APPLICATION, INCLUDING BUT NOT LIMITED TO RELEASE OF INFORMATION BY ANY LANDLORD, BANK, LENDER, EMPLOYER (PRESENT AND FORMER), AND CREDIT BUREAU. APPLICANT REPRESENTS THAT THE INFORMATION SET FORTH ON THIS APPLICATION IS TRUE AND COMPLETE. IF ANY OF THE STATEMENTS ARE FOUND TO BE DELIBERATELY INCORRECT, ANY RENTAL AGREEMENT BECOMES VOID AND WILL BE SUFFICIENT REASON FOR EVICTION. THE UNDERSIGNED ALSO AUTHORIZES VERIFICATION OF CREDIT HISTORY AND CRIMINAL RECORDS.
APPLICANT’S SIGNATURE; DATE:
_________________
"There is always plenty of capital for those who create practical plans for using it"- Napoleon Hill
"The Use of money is all the advantage there is in having money"- Benjamin Franklin[ Edited by WillFalkiner on Date 08/28/2003 ]
Quote:Tossed out his application and pocketed the $50.SavvyYoungster,
Check your local landlord-tenant laws on application fees. In one jurisdiction with which I am familiar, when the fee is more than $25, you must give the applicant an itemized accounting of how you spent the money and refund any amount not actually spent. If the fee is under $25, then no accounting is required nor is a refund of any money in excess of actual costs.
Better to be sure of your legal footing here before some smart consumer law advocate hits you with a class action suit.