 Selecting a prospective tenant is not a roll of the dice. Ideal tenants can turn out bad, but equally so, risky tenants can turn out to be pleasant surprises. The easiest way to swing the odds in the Owner or Landlord’s favor is in the screening criteria set before advertising begins. Remember you are trying to assess risk and eliminate the candidates least likely to pay and stay. To accomplish this, ask the following:
1. Tenant Income: Don’t even bother showing a property unless the rent is less than x% of their monthly gross income (before taxes). There is some judgment in the area. Ask for all income: wages, food stamps, retirement, reliable child support, etc. 2. Time with Current Employer: Do you require one year, six months, or hired yesterday? How long have they been in the industry? Why did they leave their last position? 3. Pet Policy: Will you accept the damages, odors, and calls from complaining neighbors that come with a pet? How large and what breeds will you not accept? Will you charge extra rent or deposit? 4. Reason for Moving: Where are they living now, how long were they there, why moving now, what are they currently paying? Questions like these tell a story of lease commitment, or not. 5. Number of Family Members: How many adults/children and ages? What are the maximum number of people you will accept in the house? Is it likely they will want to use the basement as an illegal bedroom? 6. Criminal Background: What involvement with the legal system is acceptable? 7. How soon do they want to move: And when can they afford to move usually different. Ask if they have the first month’s rent and security deposit saved. How long have they been looking? 8. Credit report: The credit score/report is an indication of how they manage money and use credit. It also implies commitment to debt repayment. Some kinds of debt are ok. 9. Required Security Deposit: By law it can’t be more than two months rent and shouldn’t be less than one. The required amount should be fixed based on overall risk established by all the other factors. The answers to all these questions and the experience of a professional property manager can guide the Owner in establishing the screening criteria to show, interview, and process the applicants that have high probability of paying on-time and in-full. 77th Meridian, LLC offers professional property management for residential property in Anne Arundel, Prince George, Baltimore counties, and Baltimore City. Let us manage yours.
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