How to pre-screen tenants so I can get the best applicants

[Kobe McDaniel]

Hi All,

What is the best way to go about pre-screening tenants so that I can get the best pool of applicants? Obviously we would also do this legally as well. I think I remember this from a Bigger Pockets podcast episode but cannot remember which one?

[Cory J Thornton]

@Kobe McDaniel - Whatever standard you develop, I would write it down, and use it for every application. This approach helps provide consistency as well as giving you a way to prove you treated everyone equally in the event a complaint is ever filed. 

Here is what we do to screen our tenants. 

1) Did they follow the application process and submit everything as requested. If so, start checking their info, if not, move onto the next applicant. 

2) Run an eviction history report 

3) Run criminal background check 

4) check sex offender list 

5) Set a ratio between rent and minimum income. For example, we us 1 to 3. If rent is $1200 per month, then they need an income of $3600 to apply. Make sure you verify income. 

6) Ask for landlord references and call them all. 

7) Ask for employment info, and call the previous employers as well as current employers. 

8) Set a minimum credit score. We use 650. If all the other areas check out, then we will sometimes make this standard our one compromise. If we bend on the credit score we will do something else to offset risk like a double deposit. 

9) If they have pets and if you allow pets, be sure you put an entire process in place to manage this risk. 

I'll be interested to see what other methods folks have to validate good applicants ... best of luck as you get ready to lease your property!