How to Check a Lease Applicant?

How to Check a Lease Applicant?

As businesspeople, landlords need a way to assess the risk of loss with certain tenants. This is not unlike lenders assessing the risk associated with particular borrowers. The easiest way for a landlord to protect himself against a bad tenant is to screen the tenant at the point of application. This is a relatively simple process to complete, but it does take some correspondence with professional agencies and has some associated fees.

Instructions

    1

    Give the tenant a lease application form to fill out. Templates are available from many sources online, but you also can create your own form if desired. Collect information such as the applicant's name, address, Social Security number, driver's license number, the most recent employers and their contact information and current wage and salary information on the form. Ask about any unlawful detainers or evictions, as well as any arrests or convictions, on this form.

    2

    Have the applicant sign an investigation authorization form. The form may be formatted in any way, but it must indicate the purpose of the investigation -- leasing -- and the parties who will be involved in the process. This form is important because it shows that the applicant knew you were going to try to access certain records.

    3

    Enlist the services of a tenant screening company who can run a background and credit check. Dozens of these companies exist on the local and national level, so it may be to your benefit to ask other real estate professionals or the police department for a recommendation if you aren't sure which company is good. Some companies require you to become a member before you can submit applications. Almost all charge a fee to submit applicant information, so most landlords that use screening services charge an application fee.

    4

    Review the data provided by your tenant screening company and compare the information to your lease criteria. Contact the applicant's current and former employers, landlords and personal references, both to verify the application and screening information and get a better sense of the applicant's character.

    5

    Notify the applicant of your rental decision within a reasonable time frame -- in most cases, "reasonable" is three to five business days, but this depends on the average time it takes contact employers, references and landlords. Give specifics from your criteria and the data on their application, credit report and background report if you decide not to rent to the applicant, so he understands that the denial is professional rather than personal.



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