Qualifying Tenants
Some landlords wait for the perfect tenant, while others accept the first breathing body who arrives with a fistful of cash. In the happy medium are the landlords who know the perfect tenant doesn’t exist—but that there are plenty of good tenants out there. Proper marketing of your rental unit can help you find them—but once you have several prospective tenants interested in renting from you, then what?
You can reduce tenant turnover by carefully choosing the most qualified applicant. Just make sure you are evaluating every tenant applicant on the same criteria: like income level, credit history, employment history, and rental history.
Be sure you are complying with the Equal Housing Act, which prohibits discrimination based on race, religion, age, color, nationality, family status, gender, and disabled status. Using the exact same criteria to evaluate tenants will help prevent claims of discrimination.
Don’t use a tenant’s appearance as a screening mechanism—instead, use a thorough credit history screening and employment check to weed out unqualified applicants. The size of an applicant’s family, the type of car she drives, or the brand of shoes he wears will not reveal whether he or she will pay the rent on time every month.
Only you, the landlord, can determine your minimum qualifications. Acceptable income level, employment and rental history are as you define them. And a rough economy has inspired plenty of rental property owners to reset their qualifications. Like Sam, who recently signed a lease agreement with a couple who just moved to the city for a job transfer. “I used to require at least six months on the job, but too many applicants have lost jobs over the past couple of years. If their previous work and rental history is good, I’ll take a chance on them in a new position,” says Sam.
Qualified tenants are still out there. Careful screening can help you sign a lease with the most-qualified tenant, no matter how you set your qualifications.