Screening Tenants

Let's face it, having good tenants is vital for a property management company.  No matter what kind of property you manage, whether you're in real estate property management, industrial property management, retail property management, or condo property management, you always have the difficult task of finding the right tenants.  So how do you go about finding quality tenants for your property rental?  The best way to find quality tenants is to make sure you do a proper tenant screening.  Here are some easy steps to take when screening prospective tenants:

(1) Phone call (initial contact): As a landlord, real estate agency, or property management company, you should begin your screening process with the first initial contact you have with your prospective tenant.  Typically, the first contact made with a prospective tenant is done with a phone call.  By phone, you should get a pretty good read on what your prospective tenant is like.  Before speaking with prospective tenants, be prepared to ask a list of solid, qualifying questions to better understand who the prospective tenant is.  Be up front with prospective tenants about the rental you have and you may want to immediately let them know what rent is up front as well as the security deposit.  Give them the important facts they would want to know to narrow down your tenant choices to candidates that will be able to afford your rental.

(2) Show the rental property: Showing your rental property gives you, the landlord or property management company, the ability to not only show your rental property, but it also gives you the ability to check out your prospective tenant further. Take notice of the following things about your prospective tenant: Appearance, attitude and decision making abilities.  Does your prospective tenant appear messy or neat?  While judging a book by its cover doesn't guarantee any real truth about your potential tenant, it can give you some indication as to how your rental property will be maintained.  Notice your potential tenants attitude.  Does he or she seem difficult to please?  Does he or she respect the rental property while viewing it?  Take note of the tenants initial attitude.  Did he or she come prepared with a deposit ready to fill out an application or do they seem on the fence about your rental property?  Decision making abilities also say alot about a potential tenant.  Look out for any other red flags regarding your prospective tenant.

(3) Submitting an application: Once the applicant has applied, let him or her know that you will keep them in consideration and that you have multiple prospective tenants who have also submitted applications for your rental. Once a tenant has submitted an application to you, assure them that you will notify them once you have made a decision.  Once they have applied, check the application for any inconsistencies or red flags.  If anything seems strange, make sure you look into it thoroughly.  Remember, the goal is to rent your space to good tenants and to avoid renting to a tenant who will not care for your rental space.

(4) Being approved: Once you have chosen an applicant let him or her know the rental space is all theirs and also let them know if you decided to overlook something in their background, typically something that is minor.  During this part of the process a property manager may set a date and time for the approved applicant to come and sign the lease.  Does the potential tenant come prepared?  Take note, as that says alot about what could be in store having that applicant as a tenant.

(5) Signing the lease: Once it is determined that your approved applicant will be your new tenant, having him or her sign the lease is next.  Read over the lease and make sure your new tenant understands what they are signing.  Many people will just sign without reading.  Again, notice your new tenants behavior.  Is he or she arguing every step of the way on the terms of the agreement?  This could indicate problematic behavior, so take his or her behavior during this part of the process very seriously.

Throughout each step of the screening process take note of any indication that your potential tenant may or may not be a good fit.  If you're looking for more tips on picking out a good tenant, comment below or contact us.