A home investment is the biggest investment we ever make in our lives and we all want good returns on this investment and safety of our expensive property. Strict screening is a critical step to the success of the rental property business. Any minor or unnoticed mistake can raise massive financial loss, property spoil, and even the fall of your rental property business altogether. In this regard, I have created few red flags recommended by the top realtor that you should not to miss in tenant screening. Read cautiously to overlook these red flags so that you can place a tenant into your property more quickly and without any fear. Credit Score- Qualification and quality of a proposed tenant can be determined through his credit score. A credit score of a tenant provides a great overall view of his/ her financial situations, positions. In general, your applicants should have a credit score of 620 or higher. An applicant with a lower credit score is less qualified for your rental property. Anything below the 620 considered a red flag and should be avoided. Credit score report is mainly divided into four sections: identifying information, credit history, public records, and inquiries.
Criminal History- Apart from having a good or high credit scores, it’s also important to verify criminal background check of an aspiring tenant. Applications of Potential tenants with such history of violent crimes, sex offenses, or drug offenses, DUIs, and driving without a license or insurance you must refuse. Reconsider before placing a tenant with a criminal record or unable to follow the law in your property. To allow or deny a prospect based on criminal history varies from one state to another state. In California, you are not allowed to deny the applicants who have been crooked of certain nonviolent crimes. Eviction History- An applicant with eviction history can be the biggest red flag. Several ways are there to check the eviction history of potential tenants and a rental history background check or by doing reference checks and speaking to your potential tenant’s former landlords are the firm ways from those. Prior evictions can be a most important strike against them and its better choice to avoid renting to tenants with previous evictions. Being lying especially on paperwork-
Double check every word written on paper by an applicant to be in safe hands. Do not follow tenant’s word; ensure you are verifying everything on their application. Few things you need to verify which are mentioned in their papers:-
Play safe in renting business!!
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