Our topic today is screening applicants for your rental property. At Sweyer Property Management, we believe there are three specific criteria that you need to look at when you are identifying a good applicant.
Credit score
The first thing you want to check is the applicant’s credit. There are three national credit reporting bureaus that you can use to get a credit score; Equifax, Experian and TransUnion. Ask your applicant to submit for a credit report and see what kind of credit history is provided. The minimum credit score we believe you should accept is a 600.
Ability to pay
You need to examine an applicant’s income to determine whether they make enough money to pay the rent every month. A good guide to follow is to require that the applicant’s monthly salary be at least three times greater than your monthly rental rate.
Rental history
Finally, you need to take a look at a tenant’s rental history. Contact previous rental properties and you’ll find that property owners and property managers are generally very willing to share any information about a tenant’s rental history. Make sure you ask if the tenant paid on time, left the property in good condition and if any outstanding balances were left behind.
Any problems in these three areas should throw up a red flag while you are screening tenants. If you have any questions about the screening process, or you need help establishing your own criteria, please contact us at Sweyer Property Management, and we’d be happy to help you.