What, specifically, do you do to qualify a tenant after they have applied to rent my house?
This is the one of the most important aspect of the successful management of rental property. In general, we look at an applicant’s past behavior and assume their future behavior will be the same. An applicant must demonstrate a history of being a good, responsible tenant or homeowner as well as meeting industry standard financial criteria.
LANDLORD REFERENCES – We personally talk to past landlords and ask detailed, open ended questions about the applicant’s past performance.
CREDIT REPORT – Our property manager and leasing agent has a direct connection with the Experian credit reporting service. We obtain a credit report which tells us the applicant’s current and past performance toward meeting their financial obligations. It also tells us their monthly debt, credit score, and shows their previous addresses (which we compare to addresses listed on the application). An applicant must meet established credit standards.
PROPERTY TAX SEARCH – If a private individual is listed as previous or current landlord, we will pull the tax records and verify that the person listed actually owns the property. The property tax record crosscheck, along with pulling driver license data, is what reveals most of the fraud attempts that we encounter and is a level of scrutiny that most other property management companies do not even perform.
EMPLOYMENT/INCOME – We contact the employer to verify length of employment, status, and income. An applicant needs to earn at least 3 to 4 times the monthly rent in gross income to qualify for rental and we will want to see a copy of their pay stub.
PETS – We don’t permit animals/pets into managed properties unless you allow us to do so, or unless not doing so is resulting in an unacceptable length of vacancy. We do advise our clients that the vast majority of today’s tenants have pets of some kind, and declining to accept pets will shrink the pool of potential tenants significantly. We encourage additional security deposit to help ensure the tenant cares for their pets properly while renting your property.
OTHER FACTORS – Many of our managed properties are subject to Home Owner Association restrictions such as no boats or trailers, and limits on the type and number of vehicles. An otherwise qualified applicant may be unable to lease a property if, for instance, they own a boat and want to park it in the driveway. We make sure issues like that are covered up front to avoid surprises after move-in.