Having a property that you can rent out in order to generate a steady stream of income can be a huge blessing. It is an investment that many people strive to make so that they can have a peaceful life once they are retired, and are able to relax and enjoy while making money out of rental incomes. That being said, while rental incomes sound extremely attractive form of easy money, they do come with a huge responsibility. When you are subletting your property to a tenant, you are literally handing your property over to them on their mercy. They are entitled to use your property for a said period as per their discretion. There is always a chance that your tenant can cause some kind of damage to your property and vanishes in thin air, or worse, your property might be used for criminal purposes without you being aware. All these possibilities call for a rigorous screening process when picking a prospective tenant for your property.
Although rental applications seem to have made life much easier for property owners, many owners are not aware of how to use a rental application in the best possible manner and often end up overlooking key areas that are important in the screening process. Here are some of the most important things that you should consider when screening rental applications.
Background Checks
It does not take rocket science to understand that background checks should be an important part of the tenant screening process. You would not want to hand your property over to someone who has had a history of being involved in heinous criminal offenses. This also does not mean that someone who was accused of minor offense as a teenager should be judged as a bad tenant, but it is always safe to assess such cases in the context of other elements of the screening process. You can use online property management platforms and other such directories to run background checks.
Credit Score
The most frustrating part of subletting your property is your tenant delaying payments when you are depending on your rental income to pay off your bills. That is why screening them for their credit scores is incredibly important. Tenants with stronger credit scores are least likely to create a fuss when it comes to timely rental payments. Poor credit scores combined with sketchy background should be taken as a red flag.
Employment Stability
Someone who does not have a stable job or switches jobs a lot can be a bad tenant. Although it is not uncommon for employees to switch jobs, if the frequency is unusually high or if there are long gaps between two jobs, chances are that he is going to be a flaky tenant. Always prefer rental applications that show stable employment with longer time spent in a single job.
References
Landlord referrals and references from employees and other similar authorities can be an excellent indicator of how good or bad a tenant will turn out to be. A good tenant will not shy away from furnishing you with any references that you have asked for. The best thing you can do is to call up their previous landlords and ask about how they have been as a tenant.
