Did you know that the average home in the U.S. has increased by 781% since 1980? Whether you've bought a house or an apartment complex in Denver, having tenants is a great return on investment.
As you're interviewing candidates, you'll want to be careful. You've probably heard about nightmare tenants who damage homes.
While this is overwhelming to think about, there are steps to take to avoid this. Read this guide on what to include in your tenant screening process today!
1. Use Appropriate Tenant Screening Information
First, ensure you have the correct information for the property. Next, you'll want to consider a tenant background check.
A credit history, income requirement, and rental history could also help. Credit reports could show their credit score, bankruptcy discharge, tax liens, and rental collections.
Credit background checks could be through:
Full background checks could also include the following:
- Eviction records
- Employment history
- Address history
- Public Records
2. Phone Interviews
Begin with a pre-screen phone interview. Perform a 30-minute phone interview with those you're interested in.
Check the questions you're allowed to ask in your state. Keep it a casual tone.
3. Contact References
Speak with their friends, family, employers, or previous landlords. Find out from previous landlords how much the rent was, if there were any complaints, and the address.
Ask friends and family if they have any pets and are smokers. Ask about hobbies and their character overall.
Employers can let you know their salary and if they show up on time. Find out how long they've worked for this employer and if they're on time.
4. The Reason for Previous Location
Ask Denver tenants why they're not in their previous residence anymore. It could be due to moving, their lease ending, or needing a larger location.
Avoid tenants who've been evicted or had a disagreement with previous roommates or landlords. You'll also want to avoid those who move impulsively. The best tenants will stay for the entire lease, and you don't have to worry about drama.
5. Overall Demeanor
When asking questions, do they avoid certain answers? Avoid tenants who don't provide financial information or references.
You also don't want someone rude during the screening process. During the phone interview, pay attention to straightforward and respectful people.
A non-paying tenant can be any property owner's worst nightmare. If they don't pay, this could lead to various legal and court fees you don't want. Ensure their income is more than enough to pay the rent, even if unexpected expenses occur.
What to Include in the Tenant Screening Process
After exploring this guide, you should better understand what to include in the tenant screening process. Are you bogged down and stressed trying to take care of your properties and wishing you had more time in your day?
Investor's Realty can help! Let us manage your Denver rental property. You don't have to pay premium fees; contact us today to get started!