If you are managing your own rental properties, you probably have a lot on your plate. There is a lot that goes into property management but having a good process for screening tenants can help make things a little easier.
As a property manager, having good tenants can make the rest of your job much easier. Collecting rent, making repairs, and upholding contract agreements are all much easier to do when you have a tenant that knows how to communicate and respects the property.
Finding good tenants really is a process. It includes multiple steps in which you continue to gather more information about the tenant to determine if they will be a good fit for your property.
6 Step Process for Screening Tenants
These steps are each important and you should use them to gather as much tenant information as possible. Take every opportunity and point of contact with tenants to ask questions so you can make the most informed decision for your property.
First Communication with Applicant
Your first communications with potential applicants will largely depend on how you market your available rental property. Use each phone call, text or online messaging platform to answer tenant questions and ask some questions of your own.
This is a good opportunity to ask critical questions to determine a good fit for both tenant and landlord. If there are non-negotiables for either it’s better to find those things out now. It saves everyone a lot of time.
Showing Your Property
Once you have an interested tenant, the next step is to arrange a showing of your property. This is an important step because many times it is your first opportunity to talk with your potential tenant in person.
Take this time to begin talking through some of your contract obligations. Are they willing and able to maintain the yard? Can they afford the security deposit and first months rent? Again the more information you collect will help you make the best decision for your property.
Tenant Application
If the tenant is still interested after seeing the property, the next step is to have them fill out an application.
If you have a property in high demand with a lot of interest, you can also require potential tenants to complete the application before you show the property. This can save you a lot of time scheduling unnecessary showings.
Review of Tenant Applications
After you receive tenant applications, review and prioritize top applicants. You can then notify your top selection, determine if they are still interested and offer them the property.
Wait until you have a signed contract before you notify any other applicants that the property has been filled.
Review of Contract Terms with Applicant
Once the applicant has confirmed that they are interested in renting the property, make sure to review and answer any questions about the contract.
Signing of Contract
The final step is for the rental contract to be signed by the tenant. Congratulations you now officially have a tenant!
Final Thoughts…
We have been managing our own rental properties since 2016 and have had to learn the hard way how important it is to be patient in the search for tenants. There is a lot of pressure to find a tenant quickly. The monthly expenses can begin to add up if you don’t have any rental income. It might not seem like it now but there are times when it is better to have the expenses than rush into a bad tenant situation.
The above steps are just a recommendation for screening tenants based on our process. As you begin managing your own properties, you will likely make some changes and find a process that works for you.
Until next time, happy managing!
P.S. – If you are new to property management make sure to check out some of our other posts:
