How to Screen Tenants in Fort Lauderdale, FL | Property Management Education
System - Sunday, July 2, 2017
From the Broker/Owner convention for property managers in Las Vegas, I am taking a few moments to talk about how to screen tenants. This is a question we often get asked: how do we pick a tenant for our properties?
Guidelines and Experience
There’s no one right formula to picking a tenant. Our Fort Lauderdale Property Management team uses a tenant screening checklist. This is a set of specific guidelines we follow when we’re reviewing applications and deciding who meets the qualifications. We also have a lot of experience in choosing tenants, and that can be very helpful because we know how to select the best tenants for our properties.
Another thing we do to make our tenant screening process more manageable is to categorize our properties. We have a set of A properties, B properties, and C properties. This criteria helps us evaluate the applications we receive more efficiently. The main thing we do while we’re screening tenants is to complete a full credit check and a background check. With these results, we can see their payment histories. Obviously, the higher their credit score, the higher their chance of getting approved. We also require all applicants to earn at least three times the rental amount. We need verifiable income, and ask to see pay stubs or other proof of income showing that the tenants can afford the rent.
Maintain a Consistent Process
For investors who are looking to jump into the real estate business and want to manage their own properties, I’d recommend setting up specific criteria and guidelines of what you’re looking for. This will make the tenant screening process easier and the application process consistent. It helps you avoid potential lawsuits or discrimination claims.
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