Renter Screening - Questions to Ask a Potential Tenant

Careful renter screening is the beginning of a good landlord-tenant relationship.

You're in the business of renting to make a living and nothing can interfere with that living more than a poor tenant.

I always say that 95% of your tenant problems are caused by an improper renter screening process.

If you're like me then you probably find it difficult to relax when you have rental vacancies.

So getting it rented fast is the main idea, right?

Well, from now on, let’s say getting it rented to a properly qualified tenant is the main idea.

Let’s talk about questions you should ask when interviewing prospective tenants.

Don’t give in to temptation and accept the first interested renter that comes your way. This is a costly mistake most new real estate investors make.

As a property owner you are eager to rent to a new tenant as long as it’s the right tenant.

How do you get enough details to make an informed decision about who will be living in your rental property?

Well, it all starts by asking the right questions.

First Contact:

From the very first contact with the tenant, the renter screening process has begun. Whether you are the landlord, real estate agent or property manager, the same still holds true.

First Contact is usually by telephone however first contact can also be through an internet ad or email. This is becoming a more popular method of advertising to find new tenants and I have found huge savings by advertising online on free sites.

You need to ask the right qualifying questions in order to decide if you should proceed further with your potential tenant.

Advise your potential new tenant of your up-front security deposit, rental rate requirements and other important facts regarding the rental that may help disqualify the new prospect.

I suggest you make a list or prospect card of questions to ask and have it handy while you conduct your first renter screening interview. For example:

Serious tenants will want to make a good first impression and should be happy to answer all your questions. This process can save you and tenants a lot of time and trouble.

What Should You Ask?

Your first category of renter screening questions should address your prospective tenants ability to pay rent.

Your rental application will supply plenty of information about your prospective tenant providing it is filled out honestly and accurately.

But...

You want to Screen your tenants before you give them an application so you don’t waste time with unqualified people. During the interview get the following information:

• Name and phone number
• Reason for moving

• Intended length of tenancy

• Number of people who will be living in the property

• Do they have pets

• Name and contact information for previous landlord

If your tenant passes the initial interview make sure that the application you give them to fill out provides space for details about:

• Employment
• Income

• Social security number and driver’s license number

• Credit / bank account information

• Bankruptcies and / or evictions

• References

• Criminal charges

What you can’t ask?

The Fair Housing Act prohibits housing discrimination in regard to race, color, age, gender, country of origin, religion, familial status or disability. Some states and local laws also prohibit discrimination on the basis of sexual orientation.

Be sure not to ask your prospective tenant during the application process any questions that seek to clarify any of these details unless you have already agreed to rent your property to them and are merely making conversation with your new tenant, such as asking “Where are you from?”

For thorough renter screening,

Here are some areas you should look deeper into:

Rental History:

Nothing will give you a better insight into your tenant’s value by getting references from previous landlords.

* Enquire about your tenant’s rental history and follow up with all the references provided.

Current Employment:

I probably don’t need to point this out, but tenants with a long-term, stable job will have a steady income which means steady and consistent rental payments.

Keep in mind there are some other questions you should ask for tenant screening to dig in a little deeper:

1. Guarantor:

Ask your prospective tenant if he or she is able to provide a guarantor. A guarantor is someone the tenant knows personally who will vouch for your tenant and is legally obliged to cover any costs that your tenant fails pay.

For example a family member or a close friend. If he or she can’t find anyone to vouch for them be careful. There may be a genuine reason for this but I suggest that you to investigate further.

2. Credit / Background Check:

Ask your tenant whether they have any CCJs (County Court Judgment) against them or other financial skeletons in the closest.

Ask if they’re comfortable with getting a third party to perform a credit check on them and what will come up on the report.

The person’s responses will give you a better idea if they are the kind of tenant you want living in your rental property. If their answer is not clear they are most likely hiding something.

3. Showing the Property:

We have our own style in how we show a rental property to a new tenant. You should look for and need to be aware of certain tell-tale sign to watch for while evaluating your prospective new tenants.

4. Appearance:

Is the prospect neat and clean?

Did he or she make an attempt to make a good impression? In most cases an unkempt person keeps an unkempt lifestyle and home.

5. Car:

Does the prospect have a clean car? Although we can't judge people by their cars, we should take note of it along with other details.

6. Attitude & Manners:

Does this prospect behave respectfully?

Does he or she show indications of being difficult to deal with in the future?

Did the prospect wipe his or her feet when stepping into the house?

Did the prospect walk into your rental property while smoking?

You can learn a lot about people even before speaking to them. Sometimes it helps to pay attention to the little details.

7. Criticizing the property.

Are the prospects pointing out legitimate concerns, or are they trying to come up with items to negotiate price?

8. Yes or No?

Can the prospect make the decision now or will they have to think about it?

If they know now that they want your rental, did they come ready to give you a deposit and fill out an application?

The Application Process:

The first thing you need is a quality renter screening application.

Let the applicant know that their application will be considered along with others, and you will notify them once a decision is made. Advise them that it's very important to fill out the application as completely as possible and to provide any other information that will help you make a final decision.

I recommend you run a credit report on the applicant be sure, so I suggest you collect an application fee. Tell the new tenant that if they are approved you will give them a credit for the application fee.

Inform your prospective tenant that the application must be returned as soon as possible to avoid the risk of losing the rental property to a competing prospect.

Review and verify the application thoroughly and look for inconsistencies and red flags.

The Approval Process:

This is my favorite part because I collect the money, but keep in mind that you are still screening the applicant while preparing him or her for the next step.

I like to congratulate the applicant on being approved and let them know they came in 1st place from all the other applicants.

Also I let them know if I made any special concessions just for them such as overlooking minor credit infractions, etc.

This process is also an opportunity for you to make sure the new tenant can and will deliver by making their payments as outlined. Set the time, date and place for your lease signing.

Instruct the applicant to bring the proper amounts of money and how you prefer to be paid.

I only accept money orders. I never accept cash. Once you have a signed lease and a money order for the correct amount only then should you give the new tenant keys to your rental property

The Lease Signing:

It is very important that you have a quality residential lease. You'd be surprised at how many people would just sign a lease without reading it...and I don't just mean tenants!!!

As a landlord you must pay attention to the little details. The little details will save you or cost you a lot of money.

I always go over the entire lease with the tenant at a lease signing to make sure they understand everything.

It’s your agreement with the new tenants so shouldn't you both know what is really being agreed to?

As you read the terms of the lease with the tenants you should be looking for more clues because you are still conducting renter screening trying to determine if you made the right choice.

Does the tenant argue on every item?

Are the late charges and fines an issue?
(You do have those in place right?)

Is the tenant agreeable to the house rules? And so on.

Pay close attention how your prospect responds to you and / or your lease. If you sense your new tenant is NOT happy you MUST not rent to this person!!

I strongly believe It is better to have NO tenant than it is to have the wrong tenant.

I’ve had the wrong tenant destroy my rental property in a few short months before moving out in the middle of the night without telling me.

Be Consistent In Your Renter Screening:

To protect yourself against claims of discrimination by rejected prospects, be sure to perform the renter screening process for each possible tenant and I suggest you keep a record of them.

That means doing all the same checks and asking all the same questions regardless of your comfort level with the prospect.

Consistency will not only protect you from occasional lapses in instinct and judgment but it also clears you from any possible charges that you may have wrongfully rejected a possible tenant by singling them out for any of the above reasons.

These categories are a good place to start. Keep in mind that you can't ask too many questions. This is, after all you're investment, so take the proper steps to protect it your investment.

Good luck!

Please feel free to share your rental property experiences me. Learning from each other is one of the most powerful ways to ensure your project succeeds!

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