Around 36% of people living in Denver, in 2019, we renters.
Renting instead of owning is still popular in the area today. While there are a lot of people who rent, it can be hard to find reliable tenants. As an owner or a landlord, it's your job to screen for good tenants. This process can take a lot of time and you could find yourself working with a less-than-ideal renter.
If your last few tenants have been challenging to work with, you may need to improve and upgrade your tenant background check process. In this article, we will give you a few tips to help you find the best tenants possible.
Application Form
The first step is having all potential renters fill out an application form. This will give you an overlook of their renter's history and a glance at their financial situation. On this form, you'll get the information you need to run a credit report and background check.
Check Credit Score
Doing a background check isn't enough to show if a person is a good tenant or not. Someone might not have a criminal background, but that doesn't mean they always pay their rent on time. Even if their background check is clean, you may still have issues in the future.
While you're running a tenant background check, you should check their credit score. It's important that you take your time to look at these numbers.
Many people have student loans which can greatly affect their scores. However, because it's paid off over time, many landlords don't put too much weight on student loan debt. It will show you other debts that the potential renter has that could affect their ability to pay rent, such as credit card debt.
Be sure to look out for bankruptcy and missed payments. If your potential tenant is a young adult, they may be working to build their credit and you may need to ask for a consigner.
Income Verification
You should always verify the applicant's income and employment. Someone who has recently quit their job may not be able to pay rent. You can ask for paystubs, bank statements, tax returns, and W2 forms to confirm.
If you want to confirm the bank statements and paystubs are accurate and current, you can reach out to the applicant's employer. You should also request a certificate of employment
Public Eviction Records
Editions are public records, so you can easily check online if the applicant has ever been evicted before. If they have, it's a good idea to ask them about the situation.
Pet Screening
As an owner and investor, you have to decide if you're going to allow pets in your property. You'll have more options when it comes to tenants, but there are extra steps that you must take.
After screening the tenant, you should do a pet screening. An in-person meeting is a great way to see if the animal is well-behaved.
Tenant Background Check
Running a tenant background check is crucial when you're looking for a good tenant. It can make a big difference and you can avoid a legal battle later on if you do more work screening tenants.
If you're looking for a property management service to help you with tenant screening, give us a call. We have worked with hundreds of investors and we can help you manage your property and find the best renters.
