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Are you one of the many new real estate investors in North Carolina? This is an exciting new venture for you, but are you ready for the challenges that come alongside it?
Finding great tenants for your property isn't easy. From attracting them with an appealing property to tenant screening, you have your work cut out for you.
We're here to help you out. Keep reading to learn how to screen tenants with our brief tenant screening checklist.
Start By Pre-Screening
Pre-screening will make your life as a landlord so much easier. It's simple and many landlords do it without even realizing it. But what is it?
When you write your rental listing, you likely include information about your ideal tenants, right? You talk about income requirements, the cost of rent, your preferred credit score, and basic restrictions.
Just listing these things will ward off tenants who don't meet your qualifications. Some underqualified tenants will still apply, but they may have other appealing qualities that make up for where they're lacking that they'll discuss in their application.
Financial Information
Learning about a tenant's financial information is important. It's likely that you're going to run a credit check and ask for proof of income. This is one area in which you can be flexible within reason and use your best judgment.
When you ask for proof of income, don't rely on paystubs. Many people work as contractors, meaning that they get paid in unconventional ways. Asking for bank statements or even Paypal information will help you attract these tenants.
You don't want to miss out on someone who has more than enough to pay just because their income is unconventional!
For younger tenants, keep in mind that they often have help from their parents or housing assistance through a school stipend. They may also have low credit scores because they're new to building credit.
In this case, you can ask for a cosigner.
Background Check: Yes or No?
You should run a background check on your potential tenants, but make sure that you obey housing laws and guidelines when you're making your final decision.
You want to keep your property and other tenants safe. Remember that when someone has a criminal history, it doesn't mean that they're going to be a bad tenant.
Again, use your best judgment.
Does Rental History Matter?
You'll likely also ask for rental history.
If a tenant has a long rental history, this is helpful. You'll get to see how long they've stayed with previous landlords (which will give you a good idea of whether or not they're likely to renew). You'll also see their eviction history.
Again, younger tenants may not have a rental history at all. As long as they can meet your other qualifications, it's best to disregard this information.
Tenant Screening Is Crucial
When you're trying to find the best tenants for your property, take advantage of the benefits of tenant screening. There's no surefire way to find a perfect tenant, but if you ask the right questions, you'll give yourself a better chance of finding tenants that you'll love.
Are you looking for help managing your Greensboro or Triad, NC property? We want to help you! Contact us so we can start working together today.
