The Tenant Screening Best Practices for Finding Quality Tenants

Residential property investing comes with many benefits, but tasks like tenant screening can be quite challenging.

Tenant screening revolves around several methods to determine whether an applicant is suitable for a rental property. However, many owners struggle to get the necessary information they need to make a decision.

Fortunately, PMI San Tan often helps landlords from various backgrounds with this process, and we can also help you.

Keep reading to learn about the best tenant screening practices for finding great tenants!

Run a Criminal Background Check

One of the best ways to avoid getting bad tenants is to run a criminal background check whenever someone applies.

Criminal background checks can provide you with all of the information you need about an applicant's past charges. The applicants to prioritize are those without any records, but if someone has something like a misdemeanor, use your judgment to determine whether you should approve them.

Check Rental History

Aside from running a criminal background check, you can also check an applicant's rental history.

When checking someone's rental history, pay attention to how long they have been at each property. If you notice that an applicant tends to move as soon as their lease is up, they will likely do the same at your property. This isn't necessarily a bad thing, but it will make getting them to renew their lease harder.

You should also find out whether an applicant has ever been evicted from a property. If they have, it's best to ask them about the situation to make a better decision.

Review Finances

While an applicant may have a positive rental history and no criminal background, you should still review their finances beforehand.

The best tenants are often those that have low income-to-debt ratios. The likelihood of these tenants paying their rent is much higher, which will help you avoid various issues later.

The simplest way to check their finances is to have them provide things like bank statements, pay stubs, and tax returns. You can also run a credit check to see how they handle debt.

Conduct an Interview

No matter what kind of screening criteria you have, you should always interview an applicant before making a final decision. This will help you learn more about what they're like as a person, and it will make building a relationship easier.

During an interview, ask simple questions about the applicant's past and avoid making them feel uncomfortable. If you have any issues with the information they provide, bring them up to get clarification and determine whether they can be worked through.

Outsource Tenant Screening for the Best Results

While these practices can help you find great tenants, outsourced tenant screening is the best way to do so. Not only will you attract quality tenants to your properties, but you will also save a ton of time.

PMI San Tan can help you with all of your property management needs, including tenant screening. We will ensure you get the best tenants in no time, allowing you to earn more money without any stress.