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Choosing a tenant to fill a rental vacancy is a critical decision for any landlord. Those landlords that “choose well” often sleep better at night than those landlords who are forced to “choose often” because the first tenant did not work out. As those landlords that choose over and over again find out there are no do-overs, only start-overs, a time consuming and expensive process.
For many reasons, not the least of which is to reduce income loss, a landlord needs a reliable, consistent system of attracting prospective tenants, adequately screening applicants, properly selecting a qualified tenant, and retaining good tenants. For those that choose often, it may seem like a case of easier said than done. However, those who choose well reply that it may not always be easy, but it is simple. They develop a system specific to their business and follow that process each and every time a vacancy occurs. Repetition is not the key here, but rather understanding the filling vacancy process, analyzing what works and what needs to be changed, and incorporating necessary changes or additions for future vacancies.
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As cornerstones of your system, your written documents – the lease, application form, and rent rules – should reinforce your policies and practices. These documents spell out your expectations of a tenant. The lease sets forth the contractual basis of the landlord-tenant relationship and together with the landlord-tenant laws of your state defines the duties and responsibilities of landlord and tenant. Applicants need to know what your rules are – e.g., parking or use of property amenities – in order to decide, even before submitting an application, if your property suits their needs. Landlords should also remember that they themselves as prospective landlords are being screened by prospective applicants.
All screenings should be conducted on every applicant of legal age. While the costs of checking multiple occupants can seem burdensome, some of the expense, if allowed by state law and under certain restrictions, can be offset by charging an applicant deposit. This can work to the landlord’s advantage, but conversely, requirement for excessive application fees can reduce the pool of qualified applicants. Accordingly, you may need to absorb part of the processing expense.
In our opinion, screening services provide the most efficient and effective means to conduct thorough searches for credit and criminal conviction history. Report formats may vary from vendor to vendor but most are quite detailed and provide sufficient information to aid landlords in their qualification of applicants. Selecting a screening service requires due diligence on your part to ask questions and review sample reports to determine which service meets your business needs. Once you have selected your vendor and signed up for services, it’s simply a matter of choosing the reports you want, entering applicant data, and retrieving your report. While the final determination is entirely your decision, many services offer rental recommendations that you can accept or use as guidance in your decision.
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