Austin is an incredibly diverse community, so choosing the right tenant can sometimes be a burden for landlords. Luckily, renters screening can help ensure that tenants are responsible and able to meet their part of the bargain. In this guide, we’ll discuss the basic processes for screening tenants, checking their credibility, and discovering their credit status.
1. Verifying Rental History
Letting a new tenant move into your property is great, but it shouldn’t come at the expense of your hard-earned investments. That’s why the first step of the renters screening process is to determine the applicant’s rental history. This lets you know how they have addressed themselves in the past as tenants and how fit they are to do the same for your property.
Request Previous Addresses
If the applicants sign up via contact forms, make sure they fill in their addresses for the past three years. This will assist you in keeping track of their rental records and help you reach out to their previous landlords.
Contact Previous Landlords
Contact previous landlords with questions regarding applicants’ behavior and other aspects related to their tenancy. Some of these questions include:
- Is the tenant in compliance with the agreed terms regarding rent payment?
- Did anyone I know say anything about me or see me doing something wrong?
- Did the tenant look after the property in the way it was expected and agreed upon?
- If the same tenant was available, would the landlord rent them the same house again?
Check for Evictions
When assembling the list of references, also check for any eviction history using online databases or the records of local courts. It is possible to pass judgment on a tenant having considered previous evictions as this may be a sign of future issues.
2. Performing Background Checks
Austin is full of bustling neighborhoods, and community living is an integral part of them. That’s why, to ensure the safety of your property and the people who may live around it, it’s vital you perform a background check on your tenants too.
Criminal Record Check
Start with a police record check that involves searching criminal records throughout the country to determine if any were committed in the past. Petty violations may not be a critical issue, but serious crimes that involve violence or drug possession charges should be evaluated more thoroughly.
Employment Verification
Checking tenants’ applicants’ employment status and income is important, too. If they have any co-applicants, try to identify their relations as well. This step is useful to determine whether the candidate has steady employment and proper income to meet the demand for rent payments.
In the case of this applicant, call the employer’s office to verify the information given by them and discover their stability and overall quality as an employee.
Reference Check
Request a list of references, either personal or professional, and then follow up with that particular person. The goal here is to be able to assess the type of character and reliability of the applicant, which can help you decide whether they’re a good fit.
3. Assessing Credit Scores
Credit scores are also an important factor when it comes to assessing a tenant’s profile because they speak to their level of responsibility. If the applicant has a good credit score, it shows potential for timely payment of rent and general management of finances. To discover an applicant’s credit score in Austin, you’ll usually need to do the following:
Obtain a Credit Report
Go to a certified credit reference agency and ask for a credit report. The report will give a credit check summary of the applicant, such as their credit score, history of money paid, and any money owed to other persons or organizations.
Look for Red Flags
Avoid dealing with borrowers who have given recent payments, have high debts, or have declared themselves bankrupt. These matters may also signify some financial troubles and difficulties concerning timely rent payments.
Set a Minimum Credit Score
To increase your chances of covering your costs, set a minimum credit score for checking tenants that you are willing to lease to. This threshold may make it possible for you to have a fitting answer regarding some candidates and their financial stability.
Consider the Full Picture
Credit scores are critical, but do not focus solely on them, as looking into the applicant’s financial picture is equally relevant. While it is true that having low credit scores could indicate an applicant’s bad credit standing, they could still remain a very good candidate for a house lease. That’s especially true if he has a steady job and a good rental history.
Additional Tenant Screening Strategies in Austin
Once you make sure that your main screening criteria are covered, you can go the extra mile to discover whether the applicant is worth it in the long run. Some other renters screening strategies you can employ in Austin include:
In-Person Interviews
It is easier to determine how a person behaves when you get to meet the applicant face-to-face. Guide the interview by asking about their prior residence, job, and purpose for seeking a house. As you go through interviews, learn that your intuition is always correct.
Standardized Application Forms
Having a uniform form is quite useful in the sense that it collects consistent information from all candidates. Add a rental history section, an employment section, a reference section, and a section that the tenant agrees to the background and credit checks.
To reduce the likelihood of unserious applications, you can try charging an application fee to discourage these applicants. The fee could also include funding for background and credit checks, among other costs.
Professional Renters Screening Services
Sometimes, checking tenants in Austin can be too much work, especially for landlords who already have enough on their plates. In these cases, it’s quite useful to hire a property management firm to conduct tenant screening.
Employing the services of qualified personnel can greatly help the leasing process, as they typically offer good and efficient renters screening services. This ensures that landlords get the best fit for their properties, removing all head-scratching involved in the process.
Wrapping Up
Renters screening is vital for maintaining a healthy rental business in Austin. By verifying rental history, conducting background checks, assessing credit status, and using other screening methods, you can select responsible tenants who care for your property and pay rent on time.
Implementing these strategies will minimize the risk of problematic tenants and make property management easier. And if you happen to need some professional assistance with that, reach out today and get professional renters screening services.
