Picture, for a moment, that you've just signed your first tenant to a lease. You're excited to start seeing positive cash flow and generating passive income with your rental property.
However, you quickly realize that you've made a mistake. The tenant is late on their rent payment. They trash your property. You wish you'd done something differently.
If you manage properties or you're involved in property management, you need to know about tenant screening. It's an important part of finding good renters. It helps avoid problems and keeps the living environment pleasant.
In the article below, you'll find a list of three easy tips to get started with tenant screening, specifically in Indianapolis. Continue reading to learn more about this important aspect of being a property owner.
1. Advertise to Attract Good Applicants
To find reliable tenants, you need to attract them to your rental property. Create a detailed rental listing that shows the important features of your property. Mention the number of bedrooms, bathrooms, amenities, and the rent amount to speed up the tenant screening process.
Also, let applicants know about any specific requirements like credit score or income. Put your listing on trusted rental websites and local classified ads to reach more potential tenants.
Be sure to be very clear about the payment requirements, including any fees or down payment information you may require. This will help screen out any tenants who can't afford the down payment.
2. Check Backgrounds Carefully
After you get applications, it's important to check backgrounds thoroughly. Verify the information on the application form, like employment details, income, and rental history.
Contact previous landlords to ask about the applicant's behavior, payment history, and any issues. Also, run a credit check when screening tenants to see how responsible they are with money. This will help you know if they can pay rent on time.
One of the worst things that can happen to you as a landlord is signing a lease with a tenant who doesn't pay on time. You may end up having to evict them, and that process will wreak havoc with your cash flow.
3. Interview Potential Tenants
Once you review applications and do background checks, you should interview potential tenants. Arrange meetings, either in person or online, to get to know them better. Prepare a list of questions to ask, like why they want to move, if they have a stable job, and what their lifestyle is like.
During the interview, pay attention to their behavior and how well they communicate. This will help you, as a property manager, see if they are professional and responsible. Remember to treat all applicants fairly and equally. Be sure to follow fair housing laws to avoid discrimination.
Best Tips for Tenant Screening
Tenant screening is important for property management. Advertising to attract good applicants, checking backgrounds carefully, and interviewing potential tenants will help you during your Indianapolis tenant screening process.
If you need help with the process, get in touch with the expert team at PMI Midwest.