Property managers should not underestimate the need for thorough tenant screening. Checking tenant history can take some time, but it is certainly worth the wait. You reduce your risks when you find renters that are the best match for your rental home. RENEW has been working in the Nashville property management world for well over a decade. Because of our experience, we have become experts in finding high quality tenants for our properties. Read along for some basic tips on screening tenants effectively.
How to Identify High-Quality Tenants
To make sure the renter is the right fit for your Nashville rental property, you need to perform careful tenant screening. There are certain characteristics that apply to great tenants. You can evaluate them based on the following factors:
- Can the renter afford to pay the rent?
- Do they have steady employment?
- Do they show a satisfactory rental history in paying rent on time?
- Do they have a clean criminal record?
- Does the renter act responsibly? Did they contribute to property damage in prior rentals?
- Are they likely to become long-term tenants?
How to Screen Tenants
To be effective in screening your renters, you must first be aware of your desired standards so you can set up a screening process that allows you to find the kind of renters you’re seeking. As a Nashville property manager, this is something we must be excellent at in order to maximize the return on investment for our owners.
Performing Pre-screening
Start by pre-screening prospective renters. This saves time by removing occupants that won’t suit your rental space. In your property listing, add detailed information of your requirements. When holding an initial conversation with a renter, ask important questions. Show up to the Nashville property tour ready to be engaging with the potential tenant.
Doing a pre-screening process is a good idea since it can help you determine any sign of future issues. This helps the landlord determine which prospective renters are serious about the unit, as they will be determined to complete the entirety of the screening.
How to Review a Rental Application
Your Nashville rental application form must ask for specific information in regards to:
- Contact information of the applicant.
- Current residential address and the current landlord’s name and contact info.
- Former residential addresses and the former landlords’ names and contact info.
- Current and former employers, job title, salary and employment period, including references to contact.
- Authorization for credit and background check.
Why do you need to be aware of the income of an interested renter? This lets you know if the renter has the ability to pay the monthly rent. Most Nashville property managers have an income requirement of triple the rental rate. This is what we require at Renew Real Estate Services.
How to Verify a Tenant’s Income and Employment
Why is it vital to conduct verification of a tenant’s employment? The objective is to check if the renter is transparent and honest with the information they provided. Some renters can falsify data so they’re approved to occupy your Nashville rental unit.
What Should You Inquire from Past Landlords?
It’s advisable for landlords to contact the current and former landlords. The reason is you get a cohesive narrative. Some present landlords may not tell you the truth so they can get rid of a renter without performing a time-consuming eviction.
Past landlords have no hidden agenda to cover up the story and will likely be upfront with their experiences with the renter. You’ll find out whether the renter left the rental with property damage, was reported for noise complaints, or frequently paid the rent late.
In some cases, renters can also use friends and family members to pretend to be a landlord so positive feedback is given. A way to navigate this situation is by asking the “landlord” if they have any vacant units for rent. If the response seems doubtful or you detect hesitation from their end, you’ll be able to see through the act.
How to Evaluate Tenant Credit Reports and Background Checks
Credit and background check centers on:
- Complete account history.
- Credit score.
- Prior evictions.
With credit scores, you can determine if renters are responsible with their finances. Use your best judgment when assessing a renter’s financial health. It’s a good sign if a renter has low to zero outstanding debt, a clean criminal record and no past eviction files.
How to Accept or Deny Prospective Tenants
After completing your tenant screening in Nashville, it’s time to decide whether to take in an applicant as an occupant or not. If the renters passed with flying colors, contact them to guide them to the next process, which is signing the leasing agreement.
If the renters didn’t pass your standards, you can write a rejection note or send an email. You need to document the denial as proof in case a lawsuit is filed against you.
Some property owners can get anxious about denying a renter to reside in their unit but it’s best to be direct. It’s not necessary for landlords to outline the reasons behind the decision. But when a renter pursues the topic, you can issue a legitimate answer.
Note that your reasons must be valid and comply with the Fair Housing Act. You can’t reject tenants on the basis of religion, race, national origin, color, familial status, sex, or disability.
Bottom Line
It’s true that tenant screening for your Nashville rental can mean allocating significant time. But knowing that you’ll have great tenants as a result is good motivation. High-quality renters mean consistent rental income, peace of mind, and more value for your rental space.
Not all landlords have the extra time to perform tenant screening though. If you’re one of them, it’s best to hire a reputable Nashville property management company, such as RENEW Real Estate Services to manage screening of your renters. We can conduct all aspects of property management for you! Get in touch with us today!
