Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on some helpful tenant screening tips that will help you with your tenant checks.
Rental Application:
* Applicant provides photo I.D.
* Don’t hand out applications – have the tenant complete the application on the spot.
* Don’t let the applicant fill out the form – instead, ask the applicant questions while you complete the form yourself.
* Charge a nonrefundable application fee (~$25-40) – separate the serious from the window shoppers.
* Require applicant to sign authorization for a criminal background check
Screening:
At a bare minimum, screening tenants include:
* Talking to the current and prior landlord
* Verifying the tenant’s job or other sources of income
* Criminal background
* Evictions
* Credit report
Additional steps when you screen tenants:
* Personally visiting the applicant in their current home – If you pay a surprise visit, you’ll be able to collect a great deal of information.
* Talk to the applicant’s existing or old neighbors – they’ll provide a wealth of valuable information for FREE
Don’t get tricked!
– Falsify Identity → ask for photo I.D. and social security number card
– Falsify prior landlord info/address
* How much is rent, street address, how long tenant has rented for
* Utility bill on current address
* Check County Treasurer for property info
– Falsify employment → Pay stub, call employer, etc…
– Conceal Eviction → civil records, prior landlord
– Under-reporting # of occupants → prior landlord
– Additional Warning Signs:
* Very eager
* Sign with little inspection
Screening tenants can definitely be tedious process, but trust me when I say its well worth the effort. The more thorough you are, the less litter to pick up, less damage to repair, fewer late or bounced rent checks, and longer-term tenants.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.
