How do i find high quality tenants? HELP

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How do i find high quality tenants? HELP

Jordan Deaver
Member since 2022 · 11 posts · 3 votes

I am currently a small time landlord. I have 2 properties for rent. Both 2 bed 1 bath. 900 sq. ft. . They are both newly remodeled, not top shelf but fairly nice. I had a bad tenant and now I am really desperate for good tenants. Please give me the complete run down and all your suggestions for tenant screening.  If you have a rental application or any documents you are willing to give me I would greatly appreciate them. 

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Jordan Deaver:

General rules: they should show verifiable income approximately 3x the monthly rent. Look at pay stubs or letter of hire, call the employer directly. People can buy fake paystubs online, so know how to verify they are real.

Credit score must be at least 615 but anything below 700 should be scrutinized. You should actually read their entire credit report to see if they have collections, judgments, bankruptcies. See if they pay their debts on time. Do not rent to anyone with an open bankruptcy filing. Look for excessive credit inquiries, new cards, new car loans, etc. You are looking for stability and responsibility.

Landlord reference for the last year or more. If they give you the name and number of a property manager or apartment complex, search online to see if the contact information is legit. Call them with a list of questions (any lease violations? late payments? Did they terminate appropriately? Did they have a pet? Did they get their deposit back, or were there deductions?)

Criminal history should be clean. However, a conviction doesn't necessarily mean you deny them. Are they a danger to yourself or others? If the spent time in prison but have been out and clean for ten years, there may be no risk. If their crime was drunk driving and now they walk everywhere, it wouldn't be a disapproval. If they were dealing drugs and just got out three months ago, that's high risk.

Everything you do is to evaluate the amount of risk they present. Risk doesn't necessarily mean you deny them; you can often mitigate risk with additional deposit or other conditions. It's a learning process that can't be typed into one forum post.


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  • Rene G.
    Real Estate Coach · LandlordSkool.com · Member since 2017 · 113 posts · 90 votes
    3y

    Hey @Jordan Deaver, 

    What is your current screening process? ...Maybe that would be a good starting point for us to give you some good feedback. You might be doing the right things and only need some tweaks. 

    Also, what class of neighborhood do you operate in, e.g. high-class A and B or low-class C and D?

    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Must make 3x rent, 650+ credit, 3 months of bank statements, good background, interview them before moving in. 

    2Reply
  • Alex Larcheveque
    Real Estate Agent · Rancho Cucamonga, CA · Member since 2018 · 82 posts · 36 votes
    3y

    For me, I the minimum criteria is the following: 

    1) Good credit (650+ FICO score)

    2) Clean criminal record

    3) 2.5x rent

    4) Most importantly, referrals from previous landlords (I'll call the previous landlord to get the scoop on the tenants)

    Lastly, stay patient and don't accept the first applicants that roll through. Give your listing some time, at least 2-4 weeks.

    2Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y
    Quote from @Eliott Elias:

    Must make 3x rent, 650+ credit, 3 months of bank statements, good background, interview them before moving in. 

    I agree with this. Also no evictions in last 7 years.
    You get all this from running a background check. Zillow does a pretty good job. You can take an application and run the background check with them.

    1Reply
  • Wesley W.
    Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    3y

    I am happy to send you my qualifying criteria document or answer any other questions if you PM me.

    3Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Jordan Deaver:

    General rules: they should show verifiable income approximately 3x the monthly rent. Look at pay stubs or letter of hire, call the employer directly. People can buy fake paystubs online, so know how to verify they are real.

    Credit score must be at least 615 but anything below 700 should be scrutinized. You should actually read their entire credit report to see if they have collections, judgments, bankruptcies. See if they pay their debts on time. Do not rent to anyone with an open bankruptcy filing. Look for excessive credit inquiries, new cards, new car loans, etc. You are looking for stability and responsibility.

    Landlord reference for the last year or more. If they give you the name and number of a property manager or apartment complex, search online to see if the contact information is legit. Call them with a list of questions (any lease violations? late payments? Did they terminate appropriately? Did they have a pet? Did they get their deposit back, or were there deductions?)

    Criminal history should be clean. However, a conviction doesn't necessarily mean you deny them. Are they a danger to yourself or others? If the spent time in prison but have been out and clean for ten years, there may be no risk. If their crime was drunk driving and now they walk everywhere, it wouldn't be a disapproval. If they were dealing drugs and just got out three months ago, that's high risk.

    Everything you do is to evaluate the amount of risk they present. Risk doesn't necessarily mean you deny them; you can often mitigate risk with additional deposit or other conditions. It's a learning process that can't be typed into one forum post.


    The DIY Landlord Book4.7243 Reviews
    WebsiteView Page
    6Reply
  • Jordan Deaver
    OP
    Member since 2022 · 11 posts · 3 votes
    3y

    Hey guys thanks for the replies! 

    1Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    3y

    The interview is at least as important as the background check. The damage caused from a person who is rough on your property can be much more expensive than the damages from unpaid rent. The worst of course is a combination of both.

    If you are willing to go the extra mile, meet them at their current place before you sign a lease. You will know within the first 10 seconds.

    2Reply
  • Daniel Patrick Glushko
    Member since 2022 · 13 posts · 7 votes
    3y

    Unpopular opinion here, i underprice my rentals by ~10% of market rate. From there I get my pick of the highest rated applications. The only turnover I have had is due to military relocation. 

    0Reply
  • Alvin Sylvain
    Los Angeles · Member since 2018 · 466 posts · 471 votes
    3y

    @Daniel Patrick Glushko

    What's unpopular about it? Sounds like a good strategy to me.

    0Reply
  • Gary Mazzarella
    Member since 2020 · 31 posts · 12 votes
    3y

    First off , use a screening service . I Use Rent for the credit and background check , ask for references both personal and previous land lord . I have asked for co- signers to the lease in some instances and I run a credit check on them as well . Employment history is a major factor , look for stability and not someone who changes jobs and work type or  industry frequently . Also 3 times monthly income to rent is critical as long as they are not saddles in other consumer debt . 

    0Reply
  • Gary Mazzarella
    Member since 2020 · 31 posts · 12 votes
    3y
    Quote from @Gary Mazzarella:

    First off , use a screening service . I Use Rent for the credit and background check , ask for references both personal and previous land lord . I have asked for co- signers to the lease in some instances and I run a credit check on them as well . Employment history is a major factor , look for stability and not someone who changes jobs and work type or  industry frequently . Also 3 times monthly income to rent is critical as long as they are not saddles in other consumer debt . 


    0Reply
  • Gary Mazzarella
    Member since 2020 · 31 posts · 12 votes
    3y
    Quote from @Gary Mazzarella:

    First off , use a screening service . I Use Rent for the credit and background check , ask for references both personal and previous land lord . I have asked for co- signers to the lease in some instances and I run a credit check on them as well . Employment history is a major factor , look for stability and not someone who changes jobs and work type or  industry frequently . Also 3 times monthly income to rent is critical as long as they are not saddles in other consumer debt . 


    0Reply
  • Gary Mazzarella
    Member since 2020 · 31 posts · 12 votes
    3y

    Sorry for the typo , “ Use Rent Perfect” for screening . The prospective tenant pays for the background check . 

    0Reply
  • Daniel Patrick Glushko
    Member since 2022 · 13 posts · 7 votes
    3y
    Quote from @Alvin Sylvain:

    @Daniel Patrick Glushko

    What's unpopular about it? Sounds like a good strategy to me.

    Many investors feel like they need to be at the exact value of the market. Ex. If other 3/2 are going for 1500, they lost theirs at 1500 - damned if they have to either wait a month for their perfect tenant, or worse yet have to pick between a handful of not great prospects in order to fill a vacancy.

    For the same property I will list for 1400 (surrendering 1200/year) in exchange for dozens of applicants, and always a handful of highly qualified (700+ credit, 3x income, stable work history etc). No evictions, no missed payments, no crazy damage, and no vacancy is worth 1200 a year. 
    2Reply
  • Christine Grippi
    Member since 2021 · 2 posts · 2 votes
    3y

    Hey there! I use apartments.com which is free for you to run background checks on your potential tenants. They pay a $29 fee for it. I dont accept anyone with less than a 600 credit score typically or have any evictions on their record. If they have any felonies I usually dont accept them unless they are just driving violations.

    1Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    3y

    I have found that a strong job history is one of the best indicators of a quality tenant. I require a minimum of one year at current or previous job and *VERIFIABLE* income of at least 3.5 x gross rent (if no utilities are included in rent) 3x gross if water/sewer/trash is included. I have the very nicest rentals at each price point where I compete and I require applicants to complete my FREE but long application prior to showings and to be able to follow instructions and show up for appointments on time. This application process, I believe, protects me from highly entlitled people that don't believe that rules apply to them and from flakes that can't follow instructions--- neither of whom that I want as tenants. Also, we don't compete on price. I want to be the most expensive in the neighborhood but the nicest at my price point because I want to get the best tenants willing to live in my neighborhood, tenants that are willing to pay a *LITTLE* extra to have something nicer than average. We find that we generally improve our neighborhoods by attracting tenants that wouldn't ordinarily consider our neighborhoods. We also look to purchase value-add properties in neighborhoods that we think are 'special'-- they have no thru traffic and/or are on the edges of nicer areas, they have unusually nice views and/or access to nicer than usual amenities.

    0Reply
  • Alexander Szikla
    Real Estate Agent · New York City · Member since 2020 · 819 posts · 641 votes
    3y

    1. Credit Check

    2. Background Check

    3. Verify Income - Paystubs, W-2s, Tax Returns or whatever. They need to produce something

    4. Employer - Verification and Reference

    5. Prior Landlord(s) - Verification and Reference

    1Reply
  • Alvin Sylvain
    Los Angeles · Member since 2018 · 466 posts · 471 votes
    3y
    Quote from @Christine Grippi:

    Hey there! I use apartments.com which is free for you to run background checks on your potential tenants. They pay a $29 fee for it. I dont accept anyone with less than a 600 credit score typically or have any evictions on their record. If they have any felonies I usually dont accept them unless they are just driving violations.

    There are a number of screening services with similar strategies. We have had Zillow, Apartments, and Avail running at the same time for advertising, and I have found we get like 1 or 2 hits per day on Zillow (during the holiday season), but only 1 hit or less per week from the others. I think it may be because it's a House not an Apartment, so Zillow appears to be the "go-to" website for Single Family Residence.

    We were using just the Zillow application (also $29), but were disappointed with the lack of in-depth credit reporting. Once the New Year starts, we will try using the Avail application, which is more expensive ($55) but more in-depth. Probably more importantly, Avail can handle the ITIN numbers for immigrants who do not have a Social Security Number, but use their ITIN number to pay their taxes.

    0Reply
  • Rick BassettBusiness Member
    Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
    3y
    Quote from @Jordan Deaver:

    I am currently a small time landlord. 

    Jordan, don't sell yourself short by calling yourself a small-time landlord. "You're in the great game now. And the great game's terrifying" Tyrion Lannister

    475-900-3100
    Bassett Property Management5109 Reviews
    WebsiteView Page
    0Reply
  • Alex Bock
    Investor · Davenport, IA · Member since 2016 · 121 posts · 45 votes
    3y
    Quote from @Marcus Auerbach:

    The interview is at least as important as the background check. The damage caused from a person who is rough on your property can be much more expensive than the damages from unpaid rent. The worst of course is a combination of both.

    If you are willing to go the extra mile, meet them at their current place before you sign a lease. You will know within the first 10 seconds.


     This is the most underrated response you have gotten yet IMO. To add to it (depending on your market), I put less emphasis on the credit side of things. Some of my best tenants have had terrible credit. While I still run their credit & background report, I'm looking to see if they have any prior rent collections / judgements, or evictions. Outside of that I am pretty forgiving if they check all the other boxes. You should also make sure you're utilizing the proper marketing channels when looking for tenants. Facebook marketplace has been surprisingly effective for me.

    0Reply
  • Ahad AliPro Member
    CPA/Investor · Bronx, NY · Member since 2018 · 236 posts · 45 votes
    3y
    Quote from @Jordan Deaver:

    I am currently a small time landlord. I have 2 properties for rent. Both 2 bed 1 bath. 900 sq. ft. . They are both newly remodeled, not top shelf but fairly nice. I had a bad tenant and now I am really desperate for good tenants. Please give me the complete run down and all your suggestions for tenant screening.  If you have a rental application or any documents you are willing to give me I would greatly appreciate them. 


     Hi Jordan,

    Two properties sounds like a landlord, not small time at all! I am curious about your screening process and whether you do the screening yourself or you use a service/company to assist with the process? 

    0Reply
  • Curtis Mears
    Property Manager · Raleigh, NC · Member since 2014 · 729 posts · 596 votes
    3y

    @Jordan Deaver

    First, you need to set up your requirements for the property.

    Here is what I use, verifiable income of $5,550 per month (3 times rent), good reference for previous housing history, pass credit check over 650, no outstanding past due obligations, no recent (10 years) bankruptcies, a clean criminal record, and no previous evictions.

    Yours can be different based on the property and what the property will attract. Once you set your requirements, use these to drive your search. Also, once you get an app, call to verify the information on the app. Do not assume they will be truthful. I always verify job and previous housing info.

    The other advice is to meet the clients and walk them through the property. I use this time to get to know the people and get a feel for them.

    In the long run, you should develop a process that is the same for all prospects. You get a prospect and run them through your process. Don't skip steps, even for referrals or friends.

    0Reply
  • Alvin Sylvain
    Los Angeles · Member since 2018 · 466 posts · 471 votes
    3y
    Quote from @Curtis Mears:

    @Jordan Deaver

    In the long run, you should develop a process that is the same for all prospects. You get a prospect and run them through your process. Don't skip steps, even for referrals or friends.

    Even more so for referrals or friends.

    My Dad swore off being a landlord because his very first tenant, who was a highly recommended friend of a friend, was a complete nightmare.

    Long after the fact, I told him, look, I don't care if the applicant is BFF with the Governor, we go through the process.

    (especially if he's BFF with the Governor!!)

    0Reply
  • Josie Brown
    Detroit, MI · Member since 2022 · 118 posts · 49 votes
    3y

    Here are some things I suggest including in your tenant screening process:

    1. Income (3x the monthly rent)

    2. Credit score (you can create different requirements for this depending on the rent if you'd like)

    3. Criminal background check 

    4. Past rental history (no past or current issues with eviction/non-payment)

    You could also try working with a property manager to place the tenant.

    0Reply
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