- Qualifying Tenants Increase Chances of Finding Good Renters. Here’s How Real Estate Investors Find A Qualifying Tenant...
Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on the process of qualifying tenants for your rental properties.
Qualifying Tenants - Rental Application
- Gather basic information - contact info
- Contact Info of Previous Landlords - Rental History
- Questionnaire - some applications - gives you an idea about smokers, pet owners, rental habits
- Credit Check Authorization Form - collect a fee for credit checks, most tenants are use to it $20.
- Background Check Authorization Form
- Request a copy of a paycheck stub (or tax returns if self-employed) - verifying their income
- Request to see driver’s license or social security card to verify identity
- Needs to be Neat and Legible
Qualifying Tenant - Credit / Background Check
- Identify the tenant’s previous rentals - contacts
- Payment History - on time?
- Debts - credit card, car payment, jewelry - all affect tenant’s ability to afford rent
- Bankruptcy - Discharged vs. Pending - pending may absolve all rents owed, including yours.
- Judgments and Liens
- Employment History - employer info
- Criminal History
- Credit Score - 650+ Good enough
- National Tenant Network
- Annualcreditreport.com - Equifax, Experian, TransUnion - $8
- freecreditreport.com - Experian
Qualify Tenants - Verification of Employment and Rental History
- Helps identify behaviors, patterns, and to anticipate future situations
- Call the Landlords - just like any cold call, build rapport, and ease them into the big questions.
(Walk them through a sample introduction)
- Call the Employers - Simply to ask how long? How is she as an employee (job security)?
The pre-approval process of qualifying tenants is the determining factor between ending up with a good tenant, or a bad tenant. Your real estate is an expensive investment, so it is very important that you are diligent and cover all your bases when qualifying tenants. If you have a hard time remembering things, make a checklist of everything you need and bring it with you to all your showings.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.