New landlord.. Tenant Screening service? Rural area. Mentor

New landlord.. Tenant Screening service? Rural area. Mentor

Casey, IL · Member since 2017 · 175 posts · 308 votes

Hello BP, I'm Michael Beeman.

I recently purchased a large older home with a garage that I am turning into a 3 plex, and in May I'm closing on a 6 unit apartment.  I got some really great deals on these units.. But, as a First time landlord to be I have been listening to every podcast on landlording and reading but i still have a few questions....\

Tenant Screening.. There is a lot of good information on here about Tenant Screening .. What products have you had the best luck with for background checks?  What specialized questions should be on an apartment rental application? What have you had luck with accepting/not accepting when it comes to rental applications?

What land lording tips do you have?  I'm quite nervous about this area of the business, What little tidbits have you found that seem to work well. 

I live in a Rural area and I'm brand new to this so Josh and Brandon and the 100 or so older podcasts I've listend to have made them my de facto mentors that have never met me lol; I have searched bigger pockets and I can't find anyone from my SouthEast Rural Illinois area that is active in Bigger Pockets; Do you have any tips on finding someone that could Mentor or just help me along in this area?  From the few landlords (none are on BP) that I have found in my area.. I haven't talked to a single one that does any kind of background check, it's kind of a headache..

I know that I will have units to fill come mid April/early May. How soon do you start advertising locally for tenants to apply?  

I apologize, I know that there are a lot of questions here.. I am just new and have a lot of questions..

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Investor · Downers Grove, IL · Member since 2015 · 28 posts · 8 votes
9y

I use Transunion Smartmove... have the prospective tenet fill out the online application.  They pay the fee and you get credit and background check.  

Might I suggest you advertise right away. you want as little vacancy as possible.  Start with craigslist and see what kind of responses you get. 

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  • Investor · Downers Grove, IL · Member since 2015 · 28 posts · 8 votes
    9y

    I use Transunion Smartmove... have the prospective tenet fill out the online application.  They pay the fee and you get credit and background check.  

    Might I suggest you advertise right away. you want as little vacancy as possible.  Start with craigslist and see what kind of responses you get. 

  • Dave VisayaPro Member
    Moderator
    Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes
    9y

    Hey @Michael Beeman welcome to BiggerPockets!

    BiggerPockets
  • Casey, IL · Member since 2017 · 175 posts · 308 votes
    9y

    @Greg Barbre,

    Thank you!  I am working on a Craigslist ad and reviewing Tenant requirements right now. How does this look to you? 

    Apartment features

    -Available on May1st

    -Low utilities cost. (aprox $125/month)

    -onsite Coin operated laundry service.

    -Free Wifi internet service.

    -$50 discount for auto draw on-time monthly pay (Rent is $525 after discount)

    -Low Utility deposit. ($150)

    -Pets allowed for $200 non-refundable Pet Deposit; $25/month extra per pet.

    -Smokers welcome, but any stains on paint that need painted over come out of the security deposit.

    Tenant screening requirements

    -Landlord references required

    -At least 1800/month in verifiable household income.

    -90 days work history required.

    -No Filed Evictions in last 5 years

    -One Month Rent and $600 Household Security Deposit.

    -12 month lease required.

    -$25 tenant application process to be refunded towards Security deposit as long as the Background check reveals Above requirements are met.

    -If above requirements are not met; Apartment can still be rented with a lease Co-Signer that has a Credit score of 680 or higher.

    NOTE Please respond via email if you meet these requirements and would like a tenant application. We will begin showing the unit in April. 

  • Casey, IL · Member since 2017 · 175 posts · 308 votes
    9y

    @Dave Visaya,

    Thank you!!  I'm a relatively new member and trying to learn as fast as i can. 

  • Investor · Downers Grove, IL · Member since 2015 · 28 posts · 8 votes
    9y

    @Michael Beeman very detailed ad, I like it...The only thing I might do differently is lower the discount for autopay.

    Good luck!!

  • Casey, IL · Member since 2017 · 175 posts · 308 votes
    9y

    @Greg Barbre  Thank You,   It probably won't get a great response rate, but it really should help weed through the applicants before they even apply. lol

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    9y

    A couple of points for the ad  Less words  

    Include: description e.g.  1 b/1 bath then specify  Included items wifi etc and  at the end qualifications.  I would not put average utilities in the ad, make it available at showing.  May consider co-signer is what I would put for a lesser credit score not  definite.  Skip stains on the paint for smoker- put -will consider outside smokers. This translates to I don't expect a smoky apartment.

    I want to comment on the rural area. Anywhere where you are renting where it is a small area and everyone knows everyone your interactions are really important. They always are but more so if you are in an area where news travel fast.  You will run in to people who lived in your house before, whose grandmother lived there, people who know lots about the history. Highlight/talk up the changes up front put anything upgraded in the ad, repeat it in the phonecall.  Make a script for your phone interaction questions and stick to the same info consistently, don't vary on important points. Treat everyone nicely/fairly even if they are inconsiderate.  That doesn't mean if someone no shows you have to reschedule them it just means deliver the messages with honey. If  a no show calls back I give them the set open house time but no special time.  You will get calls from the same people a year later, keep notes.  I have shown 1 house to the same people three separate rental occasions. I like them but they just aren't quick to apply and can't prove income but they are local business owners (no tax returns)..and live with family and keep coming back.   Update the outside so it has a different visual for people  then when the old owner had it.  good luck

  • Casey, IL · Member since 2017 · 175 posts · 308 votes
    9y

    @Colleen F.   Thank You for the advice. I am not worried about the number of words used because it is a Craigslist ad. But highlighting the updates inside and the work on the outside seems like a good idea.   

  • Flipper/Rehabber · Chicago, IL · Member since 2016 · 33 posts · 11 votes
    9y

    you may want to look into a website  called https://www.rentalutions.com/alt they handle all background checks and credit checks for you and the price is amazing! I use this for all of my rental and I absolutely love it. Hope this helps

  • Casey, IL · Member since 2017 · 175 posts · 308 votes
    9y

    @Evan Williams  

    Thank You very much!!  I will look it up!

  • Real Estate Agent · Brooklyn, NY · Member since 2014 · 250 posts · 60 votes
    9y

    @Michael Beeman

    Speaking from my experience as a leasing agent representing landlords in finding quality renters for their vacancies, Id recommend using Weimark. Its a great product for tenant screening that can be used by landlords nationwide. As for what should be included on apartment rental application, you should ask for at least two year's worth of tax returns, recent W2, three paystubs, 3 bank statements and an employment letter stating position, salary and years on the job.

  • Real Estate Professional · Fort Collins, CO · Member since 2017 · 6 posts · 0 votes
    9y

    There are couple of websites out there that allow you to a lot of this stuff online, all in one place; like marketing, applications, screening reports, and paying rent. 

    Have you checked any of those out? @Michael Beeman

  • Casey, IL · Member since 2017 · 175 posts · 308 votes
    9y

    @Jordan Levine

    No, I haven't.  I think that my bank has a deal where they don't charge me anything to do an autodraw from their account. But, I would certainly be interested in the other services.

  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    9y

    @Michael Beeman

    Welcome to Bigger Pockets. A great resource is the webinars section of the website. https://www.biggerpockets.com/proreplay

  • HVAC Tech · Fort Wayne, IN · Member since 2015 · 423 posts · 223 votes
    9y
    My 2 cents. Iwould not have a low deposit. That could attract bums, and you will pay for it when tenants move out. Tenants break stufg that aint theres
  • Investor · Miami, FL · Member since 2016 · 75 posts · 23 votes
    9y

    Congrats on the purchase. You want to market your property to the best of your ability. Screening starts as soon you answer the phone. You hold the cards and you set the rules. Tenant's will pay first and last month along with security deposit. Tenant income must be 2.5 to the rent expense. You don't want  a tenant who scrapes there way by. I use www.backgrounds.com to complete the background process. You could also have the tenants to bring you there police record by going to the nearest police station. You must fill your pipeline with an immense of potential tenants and you will have the luxury to select from.  I am in the Miami market.

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