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Recent reports indicate that renters are staying in their rented properties for longer, with 16.4% of people staying in the same place for between five and nine years, and 16.6% staying for 10-plus years. For landlords, these types of renters are highly valued and can be described as excellent tenants. Not only do they stay for longer periods, but they typically pay rent on time and take good care of the property.
Tenant screening is an important step for landlords that can help ensure that the most suitable tenants are selected for their rental properties. In this blog post, we will highlight four legit tenant vetting practices for landlords living in Huntington Beach. Let's get started with these landlord tips.
Conduct Background Checks
Conducting background checks is a critical part of the tenant screening process. It helps you verify the identity of potential tenants and check for any criminal history. This step ensures you're aware of any past issues that might pose a risk to your property or other tenants.
To do this, consider partnering with Sail Properties. As part of our services, we provide a comprehensive report including criminal records, eviction history, and more.
Verify Employment and Income
Next, it's important to verify that a potential tenant has a stable income is crucial. This step helps you confirm they can afford the rent and are likely to make timely payments. As part of this step, you can request recent pay stubs, tax returns, or a letter from their employer.
You can also call the employer to verify the information. Ideally, the tenant's income should be at least three times the monthly rent. This ratio helps ensure they can comfortably cover the rent and other living expenses.
Check Credit Reports
A credit report gives you insight into the financial responsibility of the applicant. It shows their credit score, payment history, and any outstanding debts. Obtain permission from the tenant to run a credit check and use a tenant screening service to access their credit report.
Generally, you should look for a credit score of 620 or higher, which indicates good financial habits. Pay attention to any late payments, bankruptcies, or high debt levels. While a single negative mark might not be a deal-breaker, multiple issues could indicate financial instability.
Contact Previous Landlords
Talking to former landlords can also provide valuable information about the tenant's behavior and reliability. This step helps you understand how they've handled previous rental agreements.
You can ask the tenant for the contact information of their previous landlords and make sure to verify that these contacts are legitimate. Inquire about the tenant's rent payment history, how they maintained the property, and any issues during their tenancy. If a previous landlord gives a bad review, it's certainly a red flag that you shouldn't ignore.
Important Tenant Screening Practices for Landlords
To sum up, tenant screening is essential for maintaining a smooth and profitable rental experience. By following the above advice, you can find reliable tenants who will respect your property and fulfill their rental obligations.
To learn more about background checks for tenants, speak to our team at Sail Properties. We're here to help landlords in Huntington Beach find the very best tenants for their rental properties.
