Key Takeaways
- Comprehensive Tenant Screening: Abrams Realty conducts thorough background and financial checks, including credit scores, criminal history, and rental history, to ensure reliable tenants.
- Employment and Landlord Verification: We verify employment history and contact current and past landlords to assess tenant reliability.
- Eviction Protection: In the event of an eviction, Abrams Realty manages the process to minimize stress and promptly re-rent the property.
- Marketing and Rent Collection: We handle property marketing and rent collection, ensuring timely payments and reducing vacancies.
When potential tenants express interest in the Virginia Beach rental home you are advertising, the next crucial step is to screen them thoroughly.
Although some landlords skip or rush through this process, implementing an effective tenant screening strategy is essential to safeguarding your rental income and maintaining its condition.
Proper tenant screening helps ensure that you attract reliable renters, reducing the risks of unpaid rent, property damage, or legal disputes.
A careful process leads to better tenant retention, fewer conflicts, and a more profitable rental business.
Keep on reading this article by Abrams Realty to learn more about effective tenant screening techniques.
Why Tenant Screening is Crucial
As a landlord, you want to find tenants who will:
Afford the rent without issue
Hold stable employment
Maintain a clean rental history
Have no criminal record
Exhibit a responsible attitude
By screening for these factors, you can avoid problems like late payments, property damage, or tenant disputes that could lead to costly turnover.
Establishing a thorough screening process allows you to protect your property, reduce vacancies, and enjoy consistent rental income with long-term tenants.
Designing Your Tenant Screening Process
Before starting tenant screening, it’s important to define the type of tenants you want for your Virginia Beach rental. Are pets allowed? Do you prefer renters with stable jobs or strong credit scores?
Clarifying these expectations will help guide your screening process and ensure you attract the best tenants for your property.
Step 1: Perform Pre-Screening
Pre-screening is a crucial first step that saves time by narrowing down potential renters. Include key details in your property listing, like pet policies, utility inclusion, and income requirements.
This helps prospective tenants assess whether they meet your criteria, reducing the chances of wasting time on unsuitable candidates.
Speaking with applicants during property tours can highlight any mismatched expectations, such as negotiable rent or pet concerns, allowing you to spot red flags early.
Step 2: Review the Rental Application
Once you’ve narrowed down the applicants, it’s time to have them submit a detailed rental application.
A comprehensive application form should ask for:
Contact information
Current and previous addresses, with landlord names and contact details
Employment information (current job title, salary, duration of employment)
References from current and past landlords
Authorization for credit and background checks
The rental application helps verify that the applicant can afford the rent and has a reliable rental history. Income is key, landlords often require tenants to earn at least three times the rent.
A tenant with low debt and stable income may be a better choice than one with a high income but significant financial obligations.
Tenants with a good rental history, including timely payments and well-maintained properties, indicate future reliability.
Step 3: Verify Income and Employment
Verifying income is essential to ensure the applicant can consistently pay rent. Request pay stubs, W-2 forms, or bank statements to confirm earnings.
Be cautious if applicants hesitate to provide documentation or offer unverifiable information.
Confirming employment status and job stability also helps gauge financial reliability, as tenants with steady jobs are more likely to pay rent on time.
Step 4: Speak With Previous Landlords
One of the most valuable sources of information during the tenant screening process is a potential renter’s previous landlord.
It’s important to reach out to the applicant’s current and past landlords to get a sense of their behavior as tenants.
Ask the former landlords about:
Rent payment habits
How they treated the property
Whether they followed the terms of the lease agreement
The reason they moved out
A conversation with former landlords can uncover issues that the tenant may not have disclosed on their application.
For example, if a tenant frequently missed rent payments or caused problems with neighbors, this is critical information that can affect your decision.
While a current landlord might have a vested interest in getting a tenant to move out, previous landlords have no such agenda and can provide more candid feedback.
Step 5: Conduct Credit and Background Checks
Once you’ve reviewed the application and spoken with previous landlords, it’s time to conduct a credit and background check.
This is one of the most effective ways to assess a tenant’s financial responsibility and reliability.
A credit report shows the tenant’s debt management, with a score of 680 or higher considered good. Lower scores may indicate financial instability and a higher risk of rent default.
Meanwhile, a criminal background check ensures the tenant doesn’t have a history of illegal activity while checking for prior evictions helps avoid tenants who may cause future problems.
If the tenant has a high level of debt or a criminal record, it may not be worth the risk of accepting their application, especially if there are concerns about their ability to pay rent or their behavior.
Step 6: Accepting or Denying the Application
Once you’ve gathered all the information, it’s time to decide whether to accept or deny the applicant.
If you decide to accept them, contact them promptly via phone or email, and provide them with the next steps, including lease signing and move-in instructions.
If you decide to reject the application, send a written notice or email to inform the applicant. It’s good practice to provide a brief explanation for the rejection.
If they request more details, you can share them, but it’s not legally required unless they ask.
Compliance With the Fair Housing Act
Before starting the screening process, make sure you’re familiar with the Fair Housing Act.
It prohibits discrimination based on race, color, national origin, religion, sex, familial status, or disability. Always screen applicants fairly and consistently to avoid legal issues.
Bottom Line
Tenant screening is crucial for finding reliable renters and protecting your Virginia Beach property. Thorough checks reduce unpaid rent and property damage, ensuring long-term success.
If you lack the time or resources, consider hiring a property management company like Abrams Realty to handle screening, marketing, rent collection, and maintenance.
This gives you peace of mind and maximum profits. If you’re looking for a dedicated property manager, contact Abrams Realty today! We’re here to help.
