If you want to maximize the return on your rental property, you must have a steady stream of income. The only way to generate that is to have reliable residents who will pay their rent on time. There are a lot of people looking for a place to rent right now, and you need to find the right resident for your rental property. Take a look at a few tips you need to follow to properly screen your applicants.
Conduct A Background Check
First, you need to conduct a background check. You need to make sure your applicant does not have a history of violent crimes. Even though you should not necessarily rule someone out just because they have a criminal record, you must make sure they will not pose a threat to your neighbors, your property, or other people in the community. Always conduct a background check and follow up on any red flags.
Carry Out A Credit Check
Of course, you must make sure the applicant can pay his or her rent on time. The best way to do this is to conduct a credit check. The best credit check is called a tri-merge, which is where you average the credit score of the three major credit bureaus. The higher their credit score, the more likely it is that the applicant will pay his or her rent on time.
Call The Applicant’s Employer
In addition, you should reach out to the applicant’s employer. You need to make sure your resident will have a steady job during the time he or she is living on your property. If the employer is willing to vouch for the applicant’s work habits, you may have found a reliable resident for your rental property.
Sit Down For An Interview
Finally, you should sit down and interview anyone who you are seriously considering for your property. This gives you an opportunity to get to know the person, his or her family, and answer any questions the applicant might have. If you are comfortable with what the applicant has to say, then you can ask him or her to sign a rental contract. That way, you can guarantee a reliable source of income from your rental property.
