How do you screen prospective tenants?
Real Estate Agent · Minneapolis, MN · Member since 2008 · 193 posts · 7 votes
How do you screen prospective tenants?
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Investor · Bellefonte, PA · Member since 2008 · 1k+ posts · 88 votes
18yI do everything MikeOH does except for #3 and #6
I don't do 3 because I'm not sure of the process in my local yet. I will be researching this soon though.
I don't do 6 because anyone they put down on their app is going to paint a rosey picture for them.
Things I do in addition.
I scope out their car to see how well it's maintained and how clean it is inside. (does it look like a mcdonalds dumpster and have bald tires?)
I check their current landlord and also their previous one. The previous one is more important. When I call I always say:
"Hi, I'm calling in regards to Jane Doe. She is interested in renting an apartment from me and put your name down on the application. How do you know Jane?"
You can tell immediately if the person is a fake because they will be stumbling to figure out what role they are supposed to be playing (are they the friend, former landlord, employer)
Forgetting a form for them to fill out is sometimes good to, it gives you an excuse to go to their current apartment to knock on the door and peer inside to see how their housekeeping skills are. Better to see it in someone else's apt than in your own.
-Michael
110 Replies
- Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes18y
Speaking to caseworkers about public assistance tenants will confirm their eligibility for the program, but not their background or behavior. I was under the impression they screened the applicants prior to approving them for rental assistance, but that's not the case.
They won't confirm any background rental history or criminal behavior. They say all screening is to be done by the landlord. One caseworker was for Section 8, the other for the city's Social Services program. Don't depend on them for information about an applicant's behavior.
- Member since 2008 · 55 posts · 0 votes18y
well it's hard.get the phone number of his recent landlord and well again the tenant will tell you nothing but lies.
- Real Estate Investor · Huntington Beach, CA · Member since 2008 · 221 posts · 9 votes18y
I would like to ask 'NorthshoreB' what he means by checking tax records to verify owners name. I too would like to verify that the landlord on the rental application is actually a landlord. But I hope he doesn't mean going down to the records office and digging through all that microfilm! That would be very time consuming.
- Real Estate Investor · Harrisburg, PA · Member since 2008 · 716 posts · 41 votes18y
Originally posted by Mark Hu:
I would like to ask 'NorthshoreB' what he means by checking tax records to verify owners name. I too would like to verify that the landlord on the rental application is actually a landlord. But I hope he doesn't mean going down to the records office and digging through all that microfilm! That would be very time consuming.
Mark check out this old(er) thread on researching: How to Research - Property Manager · Passaic, NJ · Member since 2008 · 369 posts · 83 votes18y
I'm in a low income area whichis 70% rental dwellings. I have them complete an application and submit copies of their drivers license, ss Card, and recent year to date paystubs or tax returns. I have learned over the years in my market that if I required credit reports and fees, the building would be 90% empty. I also take referrals from other existing tenants and Sec 8 tenants. The residents in my market live paycheck to paycheck so the normal criteria for approval just doesn't apply. I end up with a handful of bad apples but 2 late payers out of 36 is not a bad ratio considering.
- Homeowner · Cottage Grove, MN · Member since 2008 · 5 posts · 0 votes18y
This is probably stupid on my part, but I have found it to work both ways. I have been renting out my house for 5 years now. I live at the property, so that makes a HUGE difference. I only do month-to-month leases so that if I do get in trouble with the person, I just have to give them 30-days notice vs. evicting them.
I mostly go off of logic... it's important to me why they are looking for a new place to live. If their story makes sense & in person they seem "normal", I'm willing to give them a go.
I had 3 different guys who didn't know each other rent from me at the same time for 3 years. They all paid on time & kept the house in good condition. I lost them all for different reasons and have had a few bad renters, but have had an equal amount of good ones.
I don't actually call their references. I tell them I need their references & see how they react. If they squirm or start asking me questions or explaining why their current landlord might say something bad, that's a red flag. If they act like it's no problem, then I don't worry as much. Also, how many times are people going to give you bad references?
I also don't look at their credit because I know people who pay their rent on time every month, but have bad credit because they had a dispute with a creditor.
- Homeowner · Cottage Grove, MN · Member since 2008 · 5 posts · 0 votes18y
Oh - and also I noticed several people stressed the importance of showing up to the viewing appointment on time. I just wanted to say that I am almost always late to everything - including job interviews/flights. Before I bought my home, I lived in two separate apartments for 1-year each. I paid my rent on time every month & received my full security deposit back even with having two cats. I've had my house now for 5 years and have paid my mortgage on time every month (ok, I've been late a few times - but I pay the late fee & I keep in touch with the mortgage company, but never 30-days late). You're entitled to your opinion, but just wanted to give you a case where being late to the appointment would be a bad indicator of if the person would pay their rent on time.
- OR · Member since 2008 · 1k+ posts · 845 votes18y
[[[[...... Also, how many times are people going to give you bad references? .....]]]]
Very easily, 30% of my applicants will give me a false name for their current and prior landlords. Occassionally, I have a vacancy where 50% of the landlords given are false.
Not as frequent, but certainly often enough to be a problem, I have applicants give me a false name for their employer. More often than false names, they give me a false income amount.
I have 3 applications sitting in front of me right now where all 3 applicants have given me false names for every landlord-- that's 6 false landlords. Not only do the "landlords" not own the rentals, they don't own any property at all.
All 3 of these applicants are as charming as can be. They appear to be friendly, clean, and very forth-coming.
A con man can't do his job if he can't fool you into thinking he is honest. There are a large number of tenants out there who are darn good at the con game.
- Tucson, AZ · Member since 2008 · 945 posts · 45 votes18y
Originally posted by Steve Funder:
APPLICATION REQUIREMENTS
Pets: Pets must be negotiated in writing with an increase in the security deposit of $400.00 each for cats or dogs, $300.00 for each birdcage or cage. Aquariums greater than 12 gallons must be completely insured. Service dogs are not considered pets.You have probably totally thought this through, but here's a couple of questions:
Are you aware that birds stink to high heaven, and carry diseases that humans can get?
You are sort of right on the service dogs: they are not only not CONSIDERED pets, they are NOT pets. They are working animals. Though other animals are used as service animals, there are changes occurring on this right now, to limit the species to be used.
You do know that you can ask if the person is disabled, if the animal is a service animal trained to mitigate the disabilities, you can ask what service it performs.
(There are only 3 questions a business can ask of a SD Handler.1. Is that a service animal that assists with your disability? You can NOT ask WHAT their disability is.
2. Is that a SD/Assistance Dog? If it is not wearing a Marked Vest, Guide/Mobility Harness, etc.
3. WHAT task(s) does the Dog do for you?
(Due to the SCOTUS ruling in Grill vs. COSTCO) )And I'm sure you know that even if the service animal causes damage, the owner is responsible for it...
ofgift
- Real Estate Investor · Las Vegas · Member since 2008 · 2 posts · 0 votes17y
I do the usual credit check and also call references, which I will continue to do, but after having two really bad experiences that cost me $9K total, I question the reliability of information I receive from the references. In both cases, the tenants received glowing reports from the landlords listed on the application to rent. I don’t know if the landlords just wanted to get rid of these tenants or if they were friends of the applicant, but it ended up costing me significantly in unpaid rent and damages!
- Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes17y
I believe it was Christian who posted a great way to tell if a tenant's reference is legit - call the reference, tell them who you are, and ask how they know the applicant. Don't ask if they're the landlord or employer, simply ask how they know Mary Jones. If they're not legit, they'll be confused about who they're supposed to be. I've done this several times and luckily, the landlords were actually the landlords. Two landlords gave unfavorable references for previous applicants, and the tenant I finally approved for my first rental had two good references from landlords. One landlord uses the same attorney I do, so I knew she was real.
I have a current applicant for my 2nd rental, quite young, with a brief rental history, mostly with family. However, her job is with a large bank, she's been there over 2 years, I verified that her manager was who she said he was, and then spoke to him. He gave her a good reference, said she was in a management training program based on very good performance, reliability, and dependability.
Her application was similar to others in that she left out her former landlord's name and phone number. When I asked her for that info, she provided it right away and said she only lived there 1 month due to a vermin infestation. I called the landlord and she wasn't in, so that's still something to check.
She freely answered every question I had. I may still run a credit check, but based on her employment situation, I'm willing to overlook the lack of rental history. She has the security deposit and first month's rent.
And speaking of service animals, I had an applicant email me that she has 2 Great Danes that are medically necessary. She didn't say exactly what medical tasks they performed but did claim that exterminating was required every month by law and did I do that? PASS! - Member since 2008 · 689 posts · 23 votes17y
I want responsible tenants. I seldom get that but that's what I want.
Check out that application. Is it legible. Are phone numbers left off? (Who's got time to get business phone numbers?)
Do they ask questions like "What is a credit reference?"If they describe a problem with their credit do not say "Well, we'll have to consider you on a case by case basis"
This is a clue to them that you'll take them regardless of the credit report and you'll be hounded to death.Pin them down on who will be living in the house/apartment and pets/smoking.
Reasons for leaving is important because most tend to go on against the landlord (suspecting you're going to check anyhow).If they ask if you're going to check credit usually that's a bad sign.
If they ask too many questions about the security deposit or the utilities...they can't afford it.
- Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes17y
Originally posted by Lynn Z:
If they ask too many questions about the security deposit or the utilities...they can't afford it.
Absolutely. I have all the information about the security deposit in my advertising and on the application. If they still ask how much it is, when it's due, or can they pay just a part of it to move in and owe the rest, no thanks. - Real Estate Investor · Minneapolis, MN · Member since 2008 · 30 posts · 4 votes17y
I would use a screening company. If you charge an application fee to your client (30-40) that should defray your cost that the screening company is going to charge you. If you would like to do it yourself, I would:
1. Get a credit report. This will give you the credit picture, alias names and any additional addresses not listed on your rental app.
2. Call the landlords and ask detailed questions pertaining to rental. Make sure to call the County Tax assessor's office to find out the true owner of each address you want to inquire about. This way you can make sure you are receiving a reference from the true owner, as opposed to any landlord name the applicant give you. Ask questions like, how long did they rent, what was the monthly rent, did they pay on time, any money still owed to Mgmt, did they have good housekeeping, any damages, any record of drugs, criminal activity, false info, unauthorized people living in the unit, was proper vacate notice given and would they rent to applicant again.
3. Verify the employment. Go directly to the human resource department.
4. Verify the bank account.
5. Go to the County where the applicant has lived and run both a criminal and and eviction search.Nothing is full proof, but doing an extensive search help cut the risk
good luck!
- Real Estate Investor · Charlotte, NC · Member since 2008 · 368 posts · 42 votes17y
For landlords go to NATIONAL TENANT NETWORK. This is a company that will screen your tenants for you. So if you are dealing with an out of state tenant that just moved into your area the will handle that for you. They can do whatever you need them to do. Go there website. They are out of Raleigh, NC.
- Phoenix, AZ · Member since 2008 · 34 posts · 1 vote17y
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" 2. Look at them - tattoos on the face or fingers or baggy gangster style pants - hit the road!"
I'm sencerely curious.... Is judging a person like this in any way considered discrimination from a legal point of view? I would like to know because soon I will be renting out my own home and well, I wan't to know all there is. I think I would pretty much do the same in this situation. - Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes17y
No, judging a person based on their tattoos and ganster dress is not discrimination. "Dressing or looking like a scumbag" is not a protected class for the purpose of discrimination. In my experience, most people dress like what they are (or want to be). When you see some punk with extremely baggie pants - they want to be (and usually are) a druggie. Likewise for people with inappropriate tattoos! I once had some loser apply that had the letters K-I-L-L tattooed on their fingers. I passed!
You might want to do a little reading on the subject. A good place to start is this website: http://www.civilrights.org/issues/housing/fairhousing/housing-discrimination.html
Good Luck,
Mike
- Phoenix, AZ · Member since 2008 · 34 posts · 1 vote17y
I kinda figured it wouldn't be but just wanted to make sure. Thanks for the website Mike.
- Bowie, MD · Member since 2008 · 18 posts · 1 vote17y
Normal screening procedures, have them fill out my rental application.
From the application I can get a great idea of their rental history, employment history, and personality.A few things I have found from other investors and study material that I feel are particularly good are:
-Calling the emergency contact, and seeing if they would be willing to help the prospective tenant pay their rent if the "emergency" was to arise.
-Visiting their current residence unannounced, stating that I was in the area and noticed they forgot to fill something in on their app or I could not read it, tell them I drank lots of coffee and need to pee. The state of their residence at that time will most likely be what my house will look like if they moved in. Even if they don't let me in, I should be able to sneak a quick glance, when they open the door.
- 17yCurt DavisBusiness MemberFlipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
I cant speak for everyone, but I would rather pay a property management company to screen renters. My time is way too valuable to screen renters. Your time should be also.
Curt Davis - KAIZEN Realty538 Reviews - Member since 2009 · 16 posts · 0 votes17y
Hello all, In New Zealand there is a property manager who deals with the lowest social economic groups as tenants. He has seen and heard everything when it comes to tenants. I have posted one of his stories below:
Tenancy applicants like ships in the night
A relation asked me to help her vet a tenant last weekend.
She is letting a brand new house they have just purchased. Not being experienced investors they are real keen to find a tenant urgently.So here is the application that was sent in for credit checking. (They applied under my name in order to comply with privacy code).
Mrs tenant is a nurse and Mr is a quantity surveyor for a Government owned company. Regretfully he was not able to attend the viewing due to pressing business commitments out of town.
1 Check on Mrs shows that the 37-year-old “nice†lady has never had a check done on her before.
2 Check on Mr 38 year old also shows he has never applied for credit either.
3 Before their current 7-month long tenancy they lived in their owner occupied property in Wellington. An ownership check indicated no such name on the record.
4 A free check of the property indicates it was last sold two years ago. So much for moving from it 7 months ago.
5 A check of their motor vehicle registration indicated that the plates must have been stolen from a local road construction firm off one of their road making machines.
6 I look up the phone number of the Government owned entity that Mr works for. Alas they must have an unlisted number. Not in the white pages.
7 I report back to my trusting desperate relative. The answer was but she is a very nice lady. I cannot believe what you are saying.
If you want more of Glenn's stories such as the time he was nearly attacked in court by a mad tenant send me a PM and I will send you the link to where he submits these articles. He offers a lot of advice.
Cheers
Marc
- Real Estate Agent · Member since 2008 · 30 posts · 0 votes17y
I havent read all of the posts above, but I would like to write what I do (before I forget)...
my situation:
I rent rooms to students and only students, in a college town.How I screen
1.) Application form: I get them to fill out an application for that they dont "have" to complete. The information is optional and I pick the tenants of my choice. If they leave information out, almost guarantee youre not geting into my house.
2.) Because I rent to students I like it when they come to see the house with their parents. Come with your friends who are not moving in with you with baggy pants and dyed hair? Youre not moving in.
3.) On my application I have a section with references. If you put on your friends or co-workers and I can tell they are party-ers, sorry cant move in.
4.) I have a section on my application with emergency contacts. If you write your parents, I will consider you. Write down a friend you met at a party? Sorry buddy...Those are my ways of screening my tenants....
- Real Estate Investor · San Jose, CA · Member since 2008 · 228 posts · 13 votes17y
Originally posted by Marcial J.Paredes:
.
" 2. Look at them - tattoos on the face or fingers or baggy gangster style pants - hit the road!"
I'm sencerely curious.... Is judging a person like this in any way considered discrimination from a legal point of view? I would like to know because soon I will be renting out my own home and well, I wan't to know all there is. I think I would pretty much do the same in this situation.
In California it is considered discrimination.
"A perception of a person's race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability or medical conditions, or a perception that a person is associated with another person who may have any of these characteristics."California has so many laws protecting tenants. I had to revise my lease agreement and rephrase some words to protect myself from lawsuit.
There are professional tenants out there looking for landlords who are discriminating and next thing you know, you have a lawsuit, it's like extortion. The thing is, you might not even think you are discriminating. They go after smaller landlords cause they are not educated in Fair Housing Law.
- Real Estate Agent · Member since 2008 · 30 posts · 0 votes17y
Originally posted by Eric Wang:
Originally posted by Marcial J.Paredes:
.
" 2. Look at them - tattoos on the face or fingers or baggy gangster style pants - hit the road!"
I'm sencerely curious.... Is judging a person like this in any way considered discrimination from a legal point of view? I would like to know because soon I will be renting out my own home and well, I wan't to know all there is. I think I would pretty much do the same in this situation.
In California it is considered discrimination.
"A perception of a person's race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability or medical conditions, or a perception that a person is associated with another person who may have any of these characteristics."
California has so many laws protecting tenants. I had to revise my lease agreement and rephrase some words to protect myself from lawsuit.
There are professional tenants out there looking for landlords who are discriminating and next thing you know, you have a lawsuit, it's like extortion. The thing is, you might not even think you are discriminating. They go after smaller landlords cause they are not educated in Fair Housing Law.
I have heard many horror stories of landlords unaware of what a bad tenant can do... Please beware.
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