The Tenant Selection Process: 7 Steps to Choosing the Right Tenant for Your Rental

Most rental managers underestimate the rate of tenant turnover, unaware that the average rate is 54%. In other words, your tenants will stay in their current residence for around 2 years before moving on. Sometimes tenants move out for unavoidable reasons such as a change of job or family issues. But other times, it can be because of things that may have been foreseeable with a thorough, effective tenant selection process.

While landlords can’t see into the future, they can utilize a specific routine that helps them narrow the pool of prospective tenants to help them choose the most ideal ones. Here are seven important components that can help you choose the right tenant for your rental.

1. Rental Criteria Checklist

It’s not a small job but creating a rental criteria checklist will help you share your expectations and requirements with applicants. It can also standardize and simplify your tenant selection process.

2. Advertising 

According to research conducted during the most active renting season, landlords screen an average of two applicants per rental, but screening applicants is difficult if you’re not advertising in the right ways to the right people. However, just because the options have changed, the best way to attract prospective tenants has not. Be sure you include key points and quality photos where possible.

3. Pre-Screening & Showing

Remember that it is illegal to discriminate because of the Fair Housing Act, but you can pose questions that help you determine if the applicant is a possible good fit.  This gives you the opportunity to ask questions to the prospective tenant while also answering any questions they may have before scheduling a showing.

4. Application

However, you choose to receive applications, hand-written or online make sure it is complete and filled out honestly. You should also require that all people who will be living in the unit submit an application. Each resident is separately responsible for paying rent and maintaining the property. This way it is clear who is permitted to live there under the law. 

5. Credit Screening & Background Check

Many landlords today take advantage of tenant screening services which can provide far more information than a simple credit report. These screening services help landlords measure more than just their financials but their employment and rental histories.

6. Checking References

Even if they have a perfect credit score and work history, you don’t want to rent to someone who will mistreat your property and other residents. Make sure your application requires them to provide at least three references from prior landlords. You can also request personal references to help you get a better idea of who the person is.

7. Selection

After going through the above 6 steps, now is the time to select a tenant. In some jurisdictions, there are rules and regulations governing parts or all of this process so it’s imperative that you familiarize yourself with local laws.

Once you have notified the applicant of their approval, you’ll need to prepare and sign a lease and collect the deposit and first month’s rent – both of which can be accomplished online. After this, meet with them to do a move-in inspection, answering any questions they have or addressing any concerns. 

Mortgage Payment Assistance

If you're struggling to make your mortgage payments, there are several options available to you. One option is to reach out to your lender and see if they offer any type of mortgage payment assistance program. These programs can vary depending on the lender, but they can include things like temporary forbearance or a loan modification.

Another option is to work with a property management company. Property management companies can help you manage your property and ensure that it's being properly maintained. This can be especially helpful if you're unable to keep up with the maintenance of your property due to financial difficulties.

Overall, there are a variety of resources available to help you navigate the challenges of homeownership. Whether you need help making your mortgage payments or managing your property, here at Richardson Realty & Management LLC we can assist you every step of the way.

Computerized Monthly Statements of accounts to owners in property management

Computerized monthly statements of accounts have revolutionized the property management industry by providing a more efficient and accurate way of delivering important financial information to property owners. With this technology, property owners can easily access their financial statements at any time, from anywhere, using a computer or mobile device. This has not only made it easier for property owners to keep track of their finances but has also reduced the workload of property managers, allowing them to focus on other important aspects of property management. Additionally, computerized statements have improved the accuracy of financial reporting, reducing the risk of errors and discrepancies. Overall, the implementation of computerized monthly statements of accounts has been a game-changer for the property management industry, providing a more convenient, efficient, and reliable way of managing financial information. If you are a property owner seeking help with managing your property and would like to receive quality services such as this. Feel free to contact us here at Richardson Realty & Management, where experience is the difference.

An exploration of Comparable Market Analysis in property management.

Comparable Market Analysis (CMA) is an essential tool used by property managers to determine the value of a property. The analysis involves comparing a property to other similar properties in the same market to determine its worth. The process involves gathering data on various factors such as location, size, age, and amenities to help determine the property's value. CMA is an important tool for property managers as it helps them to set the right price for a property, whether it is for sale or rent. By analyzing the market data, property managers can determine the demand for properties in a particular area, and adjust the price accordingly to ensure that the property is competitive in the market. One of the key benefits of CMA is that it provides property managers with a better understanding of the current market trends. This allows them to make informed decisions on issues such as when to sell or rent a property, and what price to set for it.In conclusion, CMA is a critical process in property management that helps managers to determine the value of a property and make informed decisions. By analyzing data on various factors, property managers can set the right price for a property, ensuring that it is competitive in the market and meets the needs of potential buyers or renters. If you are a property owner seeking help with managing your property and determining the value of your property. Feel free to contact us here at Richardson Realty & Management, where experience is the difference.

Lease Preperation & Excecution

When it comes to renting property, a lease agreement is an essential document that outlines the terms and conditions of the rental agreement. Before drafting a lease, it is important to conduct thorough research and determine the appropriate rental price for the property. The lease agreement should include details such as the length of the lease, the date of move-in, the amount of rent due each month, the security deposit required, and any penalties for breaking the lease. Once the lease agreement is drafted, it should be reviewed by both the landlord and the tenant to ensure that all parties are in agreement. Once the lease has been signed, it is important to keep a copy for your records and provide a copy to the tenant. When it comes to executing the lease, it is important to be organized and thorough. This includes conducting a move-in inspection with the tenant to document the condition of the property before the tenant moves in. It is also important to provide the tenant with any necessary information, such as the contact information for the landlord or property management company, as well as instructions for paying rent and reporting maintenance issues. By taking the time to properly prepare and execute a lease agreement, both the landlord and tenant can be confident in their rental agreement and establish a positive relationship.You can find all of these methods and more working with Richardson Realty & Management. 

Quality home inspections play a critical role in property management.

When contemplating the process of filling a vacant unit, it's important to have a professional inspection process to review the property correctly to ensure it is safe and in good condition. A home inspection can identify any potential issues with the property, such as plumbing or electrical problems, structural issues, or pest infestations. By identifying these issues early on, you can avoid costly repairs or unexpected expenses down the line. Additionally, the right home inspection process can give you peace of mind knowing that you are making a sound investment in a property management company that you can trust and enjoy for years to come. Whether you're a first-time home buyer or a seasoned real estate investor, quality home inspections are an essential part of the property management process here at Richardson Realty & Management.

Managing tenants can be a challenging task, but you don't have to do it alone. There are various resources available to assist you in managing your tenants effectively. One option is to hire a property manager who can handle all aspects of tenant management, from screening new tenants to handling maintenance requests. Another option is to utilize technology such as property management software, which can help you keep track of rent payments, lease agreements, and maintenance requests all in one place. Additionally, it's important to establish clear communication with your tenants and set expectations early on to avoid any misunderstandings or conflicts. With the right tools and strategies in place, managing your tenants can be a smooth and stress-free process. Here at Richardson Realty & Management, we make that process smooth and easy for you. Feel free to call our office and our staff would be happy to assist you. (301) 433-0143