Coming from back to back eviction processes, I'm a lot stricter than I was in the past. Most of my rentals are $1300 and above. I can't afford to mis-calculate and end up in tenant divorce court.
Definately check criminal history. My last tenant looked good credit wise but her and her husband were 1st class con-artists with a history of fraud that didn't show up on a credit report. At the time I was only running an infile. I now run a three bureau and I've found a couple of places to run criminal background checks. I've made a commitment not to let it happen again.
I've learned that it's hard to predict the future but one should learn from the past. If a prospective tenant's overall profile is yelling, "DON'T RENT TO ME!!" from now on I'm gonna listen......lol
Check credit....., with today's market requiring a 680 for 95% Ltv on purchase money, there's plenty of individuals with decent credit needing to rent. Decent in my opinion is 580 and above with little or no recent derogs.
As for credit, how many trades and how established are the trade-lines? Look for recent lates and charge-offs. Recent derogatory information depending on the type, may mean that they are about to crash and burn.
If derogs are old, what are they? Are they luxury purchases or, are they medical, utilities and phone bills? Find out why. Get explainations.
Look for broken leases and public records tax liens, child support ect.... Don't rent to broken lease candidates or you'll be next. Calculate debt.
Check employment references for stability and income. One month most current in pay stubs. Two years employment minimum. Look at bank statements 3 months minimum. Ask for tax records 2 years.
Check rental history last two years minimum. How many lates? What type of reference do past landlords give? Another trick in the industry is called the hook-up. This is where they get someone to handle the rental verification for them with a false reference. To combat the hook-up, only accept rental verifications from a property management company with a business line that can be verified. If rental verification is from an individual....they must provide canceled checks or money order receipts.
Then like some of the other great posts have mentioned...it's that inner gut feeling stuff. Never make a decision to rent based on a good gut feeling alone, but always make the decision not to rent based on a bad gut feeling. (That quote is hot off the press from me, You heard it first.....lol)
1. Are they wanting to split rent and or deposit payments up before they even move in? Are they asking for special considerations? Are they changing the dates when they'll have "ALL", the money at the onset? Pass on these people!
2. Are they difficult to reach on the phone? Are you finding yourself always have to leave a message? And then waiting for them to call back. This is another warning sign to pass.
3. Do they seem to have a lot of drama in their life? Is it always someone else's fault? If it's a married couple, how's the balance of power? Is one over-bearing, is one oppressed?
***I've experienced an example where the wife was oppressed and committed suicide. Luckily it was in the home that they were moving from and not mine but, the lease had already been executed. The husband assured me that he would still be ok with the move and since he was the main source of income I proceeded with the rental. This ended up being an eviction*****
4. Do they re-schedule initial appointments?
5. Do they seem to make a lot of money and nothing to show for it. (drugs, alcohol, gambling, church). See how they respond to those topics.
***why did I include church? Because I've seen some churches literally drain people.
6. Why are they moving? Does their reason check out? Does it make sense. Do they need to move quick?
7. What are their long range housing plans? Can I sell them a house in the future?
