Tips on How to Screen Tenants, Winston Rowe and Associates

BLOOMFIELD HILLS, Mich. - Sept. 3, 2020 - PRLog -- Multifamily investors know that bad, problematic tenants are often the demise of their multifamily property. A bad tenant that consistently avoids paying rent can turn into a squatter eventually which makes selling your property later on difficult or worse destroys your property.

Use a Rental Application

The first essential tip is to make sure you use a rental application. A rental application that goes the extra mile and requires a lot of information from the applicants will help you find trusted tenants. The sheer fact of requiring a good amount of information up front will automatically weed out many of the bad tenants.

If a prospective tenant refuses to give information like their employer's name or credit details, valid government issued photo ID might be because they have something to hide. Prospective tenants that have stable employment and a good credit score won't feel uncomfortable with letting you know.

Meet Tenants Face-to-Face

Many rental deals are done over the internet, so the landlord sometimes never meets the tenant in person until they move in. This seems convenient at first, but it's also quite risky and can become a costly mistake.

Meeting your potential tenants face-to-face allows you to match the ID with the face. You want rental applications completed in person. When a prospective tenant fills out the application you give out, check if they have a valid ID that matches their name, address, and other relevant information.

Complete Background Checks

Completing tenant background checks is also quite important when looking for potential tenants. Then, run a tenant screening report with the information given in the application. This might seem time-consuming and a bit intrusive, but it's worth it.

This way, you know which tenants are lying about their employment, financial situation, and past living situation. If they're lying on the application, the chances are higher that they will lie to you more in the future about other important matters, such as why the rent is late.

By following these tips, the chances of landing with a good tenant are high.

This article was prepared by Winston Rowe and Associates a national consulting firm that specializes in assisting commercial real estate investors with financing. They can be contacted at 248-246-2243 or visit them online at https://www.winstonrowe.com