Information about Tenant Screening
The art of effective tenant screening requires many steps to be successful in gaining the quality information you seek. It necessitates comprehensive research on the prospective tenant, verification of results found, and intensive subsequent analysis against the minimum standard of what a reliable and trustworthy tenant candidate is. How does your candidate measure up?
What is the Next Step after the Assessment of the Prospect?After the initial assessment process of your prospective tenant, what’s next? The screening process is further defined: those meeting the minimum good tenant standard through this assessment, go on to yet another step in scrutiny; while those not meeting the standard, are left behind. This second step, processes the eligible using another review of pre-established screening standards. Having passed this round of screening, the prospective tenant often becomes a tenant-as formalized through a professional tenant rental agreement.
What is the Significance of Tenant Screening?You may wonder if this intensive tenant screening process is even necessary, and why it is so significant. When a rental lease is signed, both landlord and renter enter into an agreement that is drafted for their own respective protection. Typically, the renter is protected through regular maintenance of the apartment by the landlord; while the landlord is protected by being promised a certain amount of money for this rental on a regular schedule. Most often, this rent goes towards the mortgage, insurance, and maintenance of the building for safe lodging purposes. When rent is not paid or paid late, it puts the landlord’s financial well-bring in jeopardy. So si true of the tenant who is loud and causes damage to the property. These tenants are common and they are a huge liability to landlords. Liabilities that can be prevented through comprehensive tenant screening.
The Meaning of Screening Standards and How to Set OneSo, what is a screening standard and how do you determine a tenant standard to set all tenant screens against? Screening standards are merely your predetermined decisions about the prerequisites that a prospective tenant for your property must meet. These standards cover areas such as: financial capacity, credit history, rental history, as well as the size of the family; and are all used to determine rental eligibility in renter contracts. Furthermore, many landlords further strengthen their screening with a criminal background check to check for potential criminal activity.
Basically, when setting your own tenant screening standard, you want to ensure that you are protecting yourself and your interests to the best of your abilities-with as minimal or extensive standards you believe are necessary to find good tenants.
An important tip to recognize in setting effective screening standards is that the financial capacity refers to the ability of the prospect to meet the rent. So, you would want a prospect whose earning source is comparatively secure, in an amount that is sufficient enough to meet the rent in both times of abundance and times of financial distress. You can average this amount by multiplying the rental amount by 2-4 times; and determining if their net income meets this amount. This is just a gauge for tenant screening, as any income will always be influenced by the potential presence of a co-signor and the economy’s climate.
The above provides useful information about tenant screening basis and standards. You can also get more useful information online.