{"id":111182,"date":"2023-08-13T12:57:00","date_gmt":"2023-08-13T16:57:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=111182"},"modified":"2023-08-24T15:23:37","modified_gmt":"2023-08-24T19:23:37","slug":"how-to-screen-tenants-for-rental-property","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/how-to-screen-tenants-for-rental-property\/","title":{"rendered":"How to Screen Tenants for Rental Property: Landlord Tips"},"content":{"rendered":"\n<p>How do you screen tenants for rental property? What makes a tenant reliable?<\/p>\n\n\n\n<p>Screening is an important part of the renting process. When researching tenants, you need to do a background check, check with past landlords, and confirm how reliable they are.<\/p>\n\n\n\n<p>Let&#8217;s look at how to screen tenants for rental property.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-screening-and-accepting-tenant-applicants\"><strong>Screening and Accepting Tenant Applicants<\/strong><\/h2>\n\n\n\n<p><strong>For Brandon Turner (<em>The Book on <a href=\"https:\/\/www.shortform.com\/blog\/investing-in-rental-properties\/\">Rental Property Investment<\/a><\/em>), learning how to screen tenants for rental property is everything.<\/strong> Follow an initial application form with a background check, focusing on criminal records, bankruptcy, and evictions. Call the person\u2019s current boss and prior landlords to confirm their monthly income and past rental behaviors.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: It\u2019s possible to find background check services with a quick online search, including those that search credit histories, eviction histories, and criminal records. Alone, each of these checks typically costs between $25 and $75\u2014however, <a href=\"https:\/\/www.lawdistrict.com\/articles\/how-to-screen-tenants-for-rental-properties\" target=\"_blank\" rel=\"noreferrer noopener\">some services allow you to save money by bundling checks together<\/a> through an upgraded package or premium access to their service. These services may not have income and rental behavior data, meaning approaching a person\u2019s boss and landlord might be still necessary.)<\/p>\n\n\n\n<p><strong>When rejecting an applicant, Turner recommends knowing local discrimination laws<\/strong> to avoid appearing biased against certain attributes or communities. To ensure fairness, accept applicants in order of submission, and always provide written reasons for any rejection to circumvent claims of bias.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: Most housing anti-discrimination laws in the US stem from <a href=\"https:\/\/royallegalsolutions.com\/housing-discrimination-complaints-what-landlords-need-to-know\" target=\"_blank\" rel=\"noreferrer noopener\">historical legislation of the 1960s, principally the Fair Housing Act of 1968<\/a>. This came on the heels of the Civil Rights Act of the same year, which was aimed at helping end widespread racial inequality in parts of the United States. In 1988, the Fair Housing Act gained a significant expansion in the demographics it shielded from bias, growing to include disability and family status protections. Currently, the law prohibits any discrimination of potential tenants based on race, color, sex, religion, or nation of origin, along with the two criteria just mentioned.)<\/p>\n\n\n\n<p><strong>When you accept an applicant, insist on a holding deposit,<\/strong> which obliges them to put down a lump sum of money as a good-faith gesture while you reserve the unit for them. Turner notes that this covers your costs in the event that the applicant ultimately moves elsewhere.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: Just as with leases and many other documents establishing tenant-landlord relations, holding deposit agreements are subject to <a href=\"https:\/\/www.apartmentlist.com\/rental-management\/holding-deposit\" target=\"_blank\" rel=\"noreferrer noopener\">widely varying state and local laws<\/a>. As a general rule, though, the law tends to favor the would-be tenant in cases where the terms or execution of the agreement come under scrutiny. Be sure to consult those laws as thoroughly as possible before drafting your terms\u2014this is a good spot for your lawyer to jump in, too.)<\/p>\n\n\n\n<p><strong>Also, find the right kind of lease agreement for your tenants. <\/strong>Turner explains that you could opt for yearly leases in places where you have quality tenants you wish to retain. Alternatively, you may opt for monthly leases if tenants are harder to manage, thus leaving open the option of removing them quickly. Six- or nine-month leases are helpful for avoiding lease terms ending during holiday seasons when you could have more trouble filling the vacancy.<\/p>\n\n\n\n<p>(Shortform note: Another reason to opt for a six- or nine-month lease is that it <a href=\"https:\/\/rentredi.com\/blog\/best-lengths-for-leases\/#:~:text=The%20three%20popular%20lease%20lengths,eviction%20or%20early%20lease%20termination\" target=\"_blank\" rel=\"noreferrer noopener\">can allow you a trial period to see if a tenant is right for your property<\/a>. It\u2019s less binding than the one-year option, especially in cases where the tenant proves not to be a long-term candidate. Simultaneously, it helps reduce the turnover costs that typically accompany having too many tenants come and go under month-to-month arrangements\u2014for instance, the diminished rent that comes with vacancies.)<\/p>\n\n\n\n<p>Before handing over the keys, Turner continues, <strong>perform a walkthrough with the tenant, documenting the property\u2019s state with a move-in condition report. <\/strong>This makes it easier to identify damage inflicted by the<em> <\/em>tenant when they eventually move out.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: If you prefer, you can draft your own version of the move-in condition report. One of the <a href=\"https:\/\/www.dallaspropertymanagement.biz\/blog\/walk-through-inspection\" target=\"_blank\" rel=\"noreferrer noopener\">popular formats is a simple checklist<\/a> of each individual item, including fixtures and pieces of furniture, with columns detailing the property\u2019s condition both at the beginning of the tenant\u2019s residence and when they move out. Consider adding some empty space at the bottom of the list to add additional notes.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How do you screen tenants for rental property? What makes a tenant reliable? Screening is an important part of the renting process. When researching tenants, you need to do a background check, check with past landlords, and confirm how reliable they are. Let&#8217;s look at how to screen tenants for rental property.<\/p>\n","protected":false},"author":14,"featured_media":11984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45],"tags":[1242],"class_list":["post-111182","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-the-book-on-rental-property-investing","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Screen Tenants for Rental Property: Landlord Tips - Shortform Books<\/title>\n<meta name=\"description\" content=\"You won&#039;t make any money from investment properties without good, reliable tenants. Check out how to screen tenants for rental property.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/how-to-screen-tenants-for-rental-property\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Screen Tenants for Rental Property: Landlord Tips\" \/>\n<meta property=\"og:description\" content=\"You won&#039;t make any money from investment properties without good, reliable tenants. 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