How to Evaluate Prospective Tenants for Your Rental Property

Find the best tenants for your rental property by thoroughly evaluating each applicant.

Difficulty: Moderate

Instructions

Things You'll Need:

• Credit Reports
• Rental Applications

1. Ask prospective tenants to complete a written rental application. If more than one adult plans to occupy the property, ask each prospective tenant to complete a separate application.

2. Obtain credit and personal references on the application along with employment and rental history.

3. Verify the basic information on the application (such as employment history and prior residences) in the presence of the applicant.

4. Interview prospective tenants. Ask why they want to rent your property, how long they have lived at their current residences, and why they are leaving their current residences.

5. Determine if the applicants plan to live in the property for an extended period or if they are likely to be transient, based on their rental history in previous locations.

6. Check credit references to determine each applicant's credit history.

7. Contact personal references to evaluate an applicant's trustworthiness and sense of responsibility.

8. Check with previous landlords to determine an applicant's rental history.

9. Select the best tenant from the applicants in a nondiscriminatory manner, basing your decision on credit checks, personal references and rental history.

Tips & Warnings

• Obtain rental application forms at local office supply stores.
• Avoid possible discrimination complaints by evaluating tenants on their financial and employment histories instead of race, religion, sex, age or other discriminatory factors.

on 6/30/2006 When meeting a perspective tenant, consider how tidy they keep their vehicle. If it is full of trash and unkempt, you can expect the same inside their home. A tidy car can be a good indicator of a potential tidy tenant.

on 12/9/2005 Ask them how much stuff is gathering in their front or back yard that is not in a shed or building. This always looks cluttered or trashy when stuff is piled up beside ones house; like wood from an old dresser that is tore apart or screen doors and car parts laying in the driveway. Drive by unexpectedly. You won't even have to get out, then judge their answer to your own opinion.

on 11/22/2005 One question that I add to the application involves rating the prospect's housekeeping skills. The answer is in the form of multiple choice: Excellent, Good, Above Average, Average, Fair, Needs Improvement, Non-Existent. Since this is an applicant, it is my job to investigate and verify the information given on the application. I can then do an inspection of their current residence without giving notice.

on 11/22/2005 do a criminal background check on each person to be living in the rental property.

search public records for judgements, also known as eviction filings, if the person has been evicted previously you can guess what will happen to you.

establish before hand the number of people to be living there as well as whether or not there are to be any pets. pets can take their toll, and too many people tax the property by overuse.