Tenant Assessment – The Process – How Does a Landlord Conduct a Proper Tenant Assessment?
The basics
* All applicants over the age of eighteen must complete and sign and date an application
* All applicants must provide current photo identification, such as a driver’s license
* Spouses should be considered independent applicants for the rental process.
* Know your local fair housing and discrimination laws. Do not write in the application or take notes that can be interpreted as code words or markup used to differentiate between protected classes.
* Date and time stamp in all applications. Process them in the order of the date and time received to remain objective.
* Make sure it is signed, this is where the applicant gives their permission to run a credit check and background check.
* Have the application signed in your presence. Verify the signature with a driver’s license.
* Use the same screening criteria for everyone
* Do not accept incomplete applications
check
* Verify the application signature with photo identification
* Do a credit check and we suggest you buy the FICO Score, the eviction report and the social security check. Any discrepancies or negative reports here are a red flag. Remember, you will have to deal with this person for a long time. OFAC or Terrorist Detection is now mandatory.
* If you are renting a commercial space, you may want to consider a business-to-business report, as well as a credit report from the owners.
* Many applicants do not have a social security number or credit history. It will be difficult to get a credit report without this and you may have a legitimate reason to reject this applicant without reflecting on the character of the applicant, if you need the credit reports of all applicants. You can also try to solve this problem by applying for a guarantor in the state.
* Always be aware of Fair Housing laws, as well as state and local laws.
* Consistency in the application of your rules is key to staying within the guidelines.
* Verify income from employment through proof of payment and previous lease with owners
* Use the tenant selection checklist available at http://www.yourpropertypath.com
Approval or rejection
If applicants are approved, you can notify them by phone or letter. Be sure to confirm the rental, move-in date, and security deposit.
Schedule an appointment to sign the lease and make sure you have plenty of time to go over the house rules and discuss any issues that may require written addenda prior to signing. Once a properly signed lease is completed, the security deposit is paid, and the first month’s rent is paid, you can hand over the keys to the new tenants. Use the signing of the lease to establish a friendly relationship with clear expectations of the responsibility and obligations of the owner / manager and the new tenants.
If the tenant is rejected, a denial letter can be sent along with the applicant’s rights regarding a credit report. Many credit reporting agencies will offer a tenant denial letter or you can use the one on our site.
Howard Bell for yourpropertypath.com