Many real estate agents and property managers simply put together basic rental applications and pull credit reports to screen tenants. However, this doesn't always show the full story. Even though it could make you feel anxious, you can find the greatest tenants for your rental property by thoroughly screening applicants through a rigid application process.
Dealing with problematic tenants may severely reduce your ROI (return on investment) owing to potential damage to your property. Theoretically, a carefully chosen renter should both safeguard your rental and boost your return on investment.
Putting Together a Rental Application
Rental applications are a key part of the “sales cycle” for a property manager. This essential resource can be used to weed out good tenants from ones that do not meet your expectations. To help you with your understanding of rental applications, we have put together this resource for you!
1. Personal Information
One of the most important parts of a rental application is the personal information. This information tends to be the most sensitive, and there are a few legal implications when it comes to asking about personal information, so be sure to inquire with your lawyer or property manager.
Details that you need to look out for include:
- Name: Applicants need to present their first, middle, and last names. This is used to prevent fraud and pull screening requests and is important for keeping track of your tenant. Additionally, include a line item for the preferred name and pronoun.
- Social Security Number: Requesting a social security number can be useful for screening tenants. Several screening reports can be useful in finding out the full picture of a tenant, and an SSN is required (i.e., criminal background check, credit check, etc.).
- Additional Occupants: Will there be multiple occupants in the unit? This is important to know, especially when you do not know about the additional tenants.
- Phone Numbers: Being able to easily contact tenants is very crucial. Collecting personal numbers from each applicant gives you, as a landlord, the ability to communicate easily via phone call or text.
- Date of Birth: While age is a protected class(meaning you cannot use age as a way to legally deny an applicant), it does give you an idea of what to expect from a tenant. It is also an important piece of information to know when using screening reports.
- ID: Most rental applications require some form of government-issued ID. This cracks down on fraud and gives you more information that can be put on file for any future dealings with the person.
2. Property Details
Including information about the property can help sway potential tenants one way or another when applying for a rental property. This keeps the landlord and potential tenant on the same page on a signable document.
Things that should be included in the property details section of an application are:
- Property Address
- Rent
- Security Deposit
- Pet Deposit
- Lease Term
- Additional Fees
Putting all of this information in the application saves everyone a lot of time, especially when considering budgets etc. This protects both you as a landlord and the tenant, as everything is laid out as far as expectations and responsibilities go.
3. Residence History
When evaluating potential tenants for a rental property, landlords and property managers often rely on a variety of factors to make informed decisions. One crucial aspect that plays a significant role in this process is the applicant's residence history.
A thorough examination of an applicant's past residences can provide valuable insights into their reliability, financial stability, and suitability as a tenant.
4. Employment and Income Information
Evaluating employment and income information within a tenant application is a crucial step in selecting responsible and reliable tenants for your rental property. This data offers valuable insights into an applicant's financial stability and ability to meet their rent obligations.
When reviewing this information, focus on the applicant's employment history, including job stability and career progression. Verify their current employment status and contact details to ensure accurate representation. Additionally, examine their income to ascertain if it meets the property's rent-to-income ratio requirements, a common benchmark used to determine affordability.
By carefully considering employment and income details, landlords and property managers can make well-informed decisions that lead to successful and harmonious tenant-landlord relationships.
5. Pets
Addressing pets in a tenant application requires a thoughtful approach to balance the needs of both tenants and property owners. Start by establishing clear pet policies and communicating them upfront. Request information about the type, size, and number of pets the applicant intends to bring. Inquire about their pet's behavior, training, and any relevant certifications.
While it's important to accommodate tenants with pets, it's equally crucial to safeguard your property and other tenants. Consider pet-related deposits or fees to cover potential damages or additional cleaning. Above all, aim for transparency and fairness when evaluating pet information, ensuring a harmonious living environment for all residents, furry and non-furry alike.
Asheville Phoenix Properties - Your Premier Property Management Company
When it comes to creating a rental application, it is important to get as much information as possible. Instead of coming up with a tenant application on your own, the property managers at Asheville Phoenix Properties can take care of it for you.
A reputable property management firm like Asheville Phoenix Properties may be able to assist you in steering clear of many of the challenges associated with renting out real estate. We act as a go-between for you and your potential tenants, taking care to screen and choose only the best applicants for your rental properties.
We have over twenty-five years of real estate management experience and know-how to help owners and tenants by handling every area of a rental property.
Contact Asheville Phoenix Properties today if you want to spend less time vetting potential tenants and worrying about your rental properties. Our staff will set to work advertising your home, attracting qualified tenants, and managing it for the duration of a lease.