For each candidate, you should have asked them to fill out a rental application including information about their work history and previous landlord references. You should speak with their previous landlords now if you haven't already done so. Many times, you won't be aware of behavioral issues, rule violations, damage, or vandalism unless you have these conversions. If they're actually an employee, you should also check with their employer's Human Resources department.
Immediately after you've gathered all of the information from their rental application, as well as their credit report and criminal history, you'll be able to reject any applications that you don't want to accept. Any applications in which you are concerned about the applicant's capacity to afford and pay rent, as well as their ability to respect the property and neighbors, are included in this category.
To avoid breaking Fair Housing regulations, be sure you have a good basis to reject an applicant. Keep a record of these explanations in case a prospect argues that they were turned down for a reason they didn't understand.
You may come across an application that you desire to follow up on from time to time. There's no reason why you shouldn't ask for an explanation if the candidate is continuously moving from one place to another or hasn't had work for more than six months. There's no reason to pursue the one that will imply extra work for you if you have a lot of other applications with eligible renters.
Things to Consider While Reviewing Applications
Applicant Name and Other Basic Information
Any discrepancy in the applicant's name or the number of occupants may need a phone contact to clarify details. Check to see if the information on an application matches what you already know about the person. Otherwise, move on - it might be a hint that the individual you're dealing with isn't trustworthy.
Additional Occupants
Make sure each adult who will be residing in the unit fills out an application. While the connection between any of the persons living in the property shouldn't matter (just the financial stability), keep in mind that if an application wants more adults than your area's occupancy guidelines allow, you're compelled to deny them.
Rental History
When you follow up with former landlords and/or managers, double-check any information they gave you against what you have noted in your own notes. If somebody was evicted or asked to leave their previous residence, this is a red flag. You can use information about former residences to make a judgment call about them.
Employment History
Inquire about the person's tax returns from the last two years if they are self-employed. He or she can generate letters from vendors and landlords as well as letters from partners if the person operates his or her own firm. A co-signer should be a cosigner for a student who has never worked before (usually a parent or guardian).
This will give you a good idea of how much he or she can afford to spend. Add up the incomes of the spouses or partners of a married couple to check if the amount satisfies the "at least three times the rent" requirement. When calculating a person's income, focus on their gross income rather than their net income, since this will give you a realistic picture of what they can afford.
Source: Laurence Jankelow (Avail.co)
Read the last part of the series here: Handling Tenant Rejection
Comments