Setting Criteria for Rental Application to Mitigate Troublesome Tenants
When it comes to renting out your property, the basic thing that you want to ensure is that you have a great tenant, not the one who delays or avoids the payment, or the one who comes up with the petty complaints about dents on the fridge and a bit stuck light dimmer. Remember, hiring a troublesome tenant means you are going to kill the cash flow. So, the basic need here is to screen the tenants with the help of effective processing of the applications they give for renting your property.
The leasing agent
At first, it may seem a bit hard to understand the fact that hiring a leasing agent is not a mere consumption of money and that hiring one would be beneficial in the long term. A leasing agent’s basic job is to help in the screening of your future tenants by underwriting the applications. For instance, if you have set certain criteria for the tenants to qualify, the leasing agent would make sure that the tenants’ applications are pointing out at the fulfillment of those criteria with no-nonsense references. Here, your job is to make sure that prospect is submitting every important document that could help you in finding out whether or not the prospect is capable of renting your property. The documents should give you clear picture of tenant’s financial and renting history.
Here, you can also set different criteria to ensure that your tenant is capable of paying the rent on time. For this purpose, you will have to make sure that your tenant is financially stable. For instance, you can set a qualification criterion for future tenants to be earning three times of the amount of your rent. For this purpose, you can ask for the three recent pay stubs or record of current lease and bank statements in case the prospect is a self-employed person.
Additional criteria that you can set may include records of prior evictions and the criminal record of past five years. You can also contact the previous landlords of prospective tenants to know about the general behavior of the client if you want to dig a little deeper. This is where the leasing agent can help you.
Sticking to the criteria
If you want to ensure the flawless process of receiving the cash flow after renting out the property, you need to stick with the criteria. It’s best to move on if the prospect is not earning much or he/she is out of job for two months. Don’t treat any prospect with leniency.
Things to consider before finally approving
Even though, you may receive complete documents from a prospect, a little deep checking can help you avoid being a victim of any type of fraud. The pay stubs can be fabricated and the previous references can be the fake ones. So make sure that you are digging deeper enough to ensure that you are dealing with the legitimate prospect.