One of the most important parts of managing an apartment building is tenant screening. Choosing tenants wisely will do more to make your job easier as an property manager than probably any other activity you can do.
As always, laws do vary from state-to-state and this is for informational purposes only. You should always check with a professional if you need legal advice.
OK great, let’s get right into things.
5 Keys to Getting Great Tenants Into Your Apartment Buildings
1. Always Check Credit History.
This is a must for anyone that has been a professional property manager for some time. Nothing will help display a potential resident’s ability to pay the rent on time than their credit history. The main thing we are looking for here is a good payment history and that they are not overly burdened with debt.
2. Always Check Criminal Background.
Many property managers that do check credit history miss on this one. Always check a prospective tenant’s criminal background. Many times what you will find is that someone with a lengthy criminal history will also have bad credit. So they do sometimes go hand-in-hand. In any event, you do want to make sure you are running a safe, comfortable place for your existing tenants to live.
3. Always Check Resident History & Job References.
Again, many property managers may try to skip this step – especially if there is a good “gut feel” for the prospective resident. But you should always check with their previous landlords and make sure they paid on time and were good residents. You will also want to verify their current employment status by calling their employer.
4. Have an Income Requirement.
This can be very simple. You basically can take the rent and multiply by 3 or 4 times – and that should be their minimum income. This will help show that your prospective residents meet a minimum income requirement to show their ability to pay the rent. You can also have them bring in paycheck stubs or deposit receipts to help support their income stating.
5. Always Have Tenants Pay Deposit & First Month’s Rent in a Cashier’s Check.
If you have done all of your homework above, you may feel that this is not necessary. However, keep in mind that you are renting an asset that is worth tens of thousands of dollars. Have them pay with a cashier’s check for deposit and first month’s rent. You do not want to find out their first month’s rent check did not clear after they have moved in!
