Once your marketing campaign for your Colorado Springs rental property is over and you have several potential tenants making inquiries and showing interest in becoming a resident of your rental, the next step is to perform tenant screening.
It is time to evaluate which renters are top-quality and meet the standards you have set.
How To Identify High-Quality Renters?
Performing tenant screening is vital in managing a rental since it helps you find the best resident who would be a good fit for your Colorado Springs rental unit. This process helps you recognize red flags and keep away the bad tenants.
As a landlord, it’s best to have a set criteria on the kind of resident you are seeking so the tenant screening process is easy.
Ask yourself if a prospective renter
Can afford to pay the rent.
Has a steady employment.
Displays a good rental history.
Shows a responsible attitude.
What Is the Process of Screening Tenants?
Have a clear idea of the kind of renter you want to live in your Colorado Springs rental property. Then, create a tenant screening procedure that suits your minimum criteria so the process of selecting a tenant is effective and efficient.
How Do You Perform Pre-screening?
Saving time is important for landlords since you have many responsibilities to attend to, aside from maintaining your Colorado Springs rental property. This is the reason landlords should prioritize conducting a pre-screening.
You can start by crafting a detailed listing that lets a prospective renter know whether
Pets are welcome in your rental space.
Tenants are in charge of paying for the utility bills.
A pre-screening also saves potential tenants time since they can look for other rental properties if you have a no-pet policy and they prefer a rental space that accommodates pets.
When communicating with interested candidates, ask several questions that help you assess whether they are suitable for your rental space. Be present during a property tour and do a pre-screening by finding out more details and the preferences of the interested renter.
A pre-screening also helps you spot potential problems since you learn more information from the candidate. An extensive tenant screening can also turn off unqualified tenants since most won’t take the screening seriously, while the interested ones will be open to the extensive screening procedure.
How to Review a Rental Application?
Basic information should be present on your rental application form, such as
The candidate’s contact information.
Where the candidates are currently residing, including their landlord’s name and contact information.
Where the candidates were formerly staying, including their landlord’s name and contact information.
Where the candidates are currently employed and formerly employed, including their job title, salary, period of employment, and a list of their contact references.
Authorization for credit and background checking.
Verification of the employment is an essential step so landlords can learn if the candidate has the earning capacity to meet the monthly rental payment obligations. Typically, most landlords require renters to have an income 3x the rental due, but this depends on the landlord.
Why Should You Verify a Tenant’s Income and Employment?
As a landlord, you need access to accurate information and some potential tenants may not tell the whole truth of their income to pass the screening process of your Colorado Springs rental property. They may also submit fake references on the application forms so landlords need to verify first.
Why Making Inquiries to Former Landlords Is Vital?
The information contained in the application form can be limited, so it’s a good practice for landlords to contact the current and previous landlord of a candidate.
Both can reveal more information on the tenant’s history. Did they move out and leave behind property damage without paying for it? Were they reported for noise disturbance?
Did they have unpaid rental dues? Former landlords are more open to sharing information compared with the present landlords who may support the tenant’s decision to move out from their rental space.
Why You Need To Evaluate Tenant Credit Reports and Conduct Background Checks
Credit and background checking is important since it shows the complete account history, credit score, record of prior evictions, and criminal record of a prospective renter. The credit scores also reveal how financially responsible a candidate is.
Scores around 680 or above are satisfactory while taking in tenants with lower credit scores in your Colorado Springs rental property can lead to risks. Assess the outstanding debt a potential tenant carries, including their eviction and criminal record.
Ignoring these crucial factors can result in probable financial losses and may place your property and other tenants’ safety at risk.
How To Accept or Deny Prospective Renters?
Once you’ve completed the screening procedure outlined above, it is time to decide whether you want to accept or reject a potential tenant.
For positive news, call or email the candidate to announce that you accept their application to be a resident of your Colorado Springs rental property. Lead them to the next stage of the process, which is lease signing.
If you decide to decline a candidate’s application, you must inform them through writing or email to have a record of the rejection. This is important to present proof. You are not expected to list down the reasons for denying the renter’s application.
Strive to keep the tenant screening process of your Colorado Springs rental property fair by reviewing the Fair Housing Act. This law ensures discrimination against protected classes is avoided.
Bottom Line
Conducting a comprehensive tenant screening for your Colorado Springs rental property can take a lot of effort and time, but this helps you eliminate bad tenants who are delinquent with rental payments and those who break property policies.
A solid tenant screening procedure helps you maximize your earnings and protect you from stress.
You can also partner with a reliable property management company to support you in performing a thorough tenant screening and attracting top-quality renters. Contact Alliance Property Management today!
