Renting to other individuals or families can be a rewarding experience. However, the tenant chosen to inhabit the premises must be reputable. You don't want a tenant who might eventually stop paying rent, damage the property, or engage in onsite illegal activities.

Similarly, you will want to make sure the tenant can actually afford the rent, the amount of which should be comparable to rental rates in the area for the same type of home (for example, if the property for rent is a 3 bedroom house, then the rental rate should be similar to the rental rates of other 3 bedroom houses in the neighborhood). Thus, you must screen potential tenants to weed out the bad apples as well as folks who are not financially qualified.

WHAT TO SCREEN

To choose a tenant from several applicants, the property owner must consider several things.

Credit worthiness: Has the tenant ever been part of a bad debt or ever declared bankruptcy? Is the tenant's credit history filled with negatives? Did the renter pay the previous landlord on time every month?

Responsibility: Did the potential tenant keep his previous rental in good shape? Did he cause any damage? Was the place left clean and in proper order after move out?

General character: Was the tenant excessively noisy at his previous place of residency? Did the neighbors ever complain? Did he have unauthorized pets or lessees? Has he engaged in any illegal or ethically questionable activities?

These are the 3 biggest categories that a property owner must evaluate. Any negative findings in these areas should generate a red flag.

HOW TO SCREEN

In order to protect your property, a credit check should be done to determine the individual's credit worthiness. The best way is to join an organization like National Tenant Network or Mr. Landlord. Once you fill out an application and pass an onsite inspection, you will be able to pull detailed credit reports on applicants.

These organizations will also allow you to purchase eviction reports and crime record reports by county or state, which is important as well. This is especially true in the case of a prior eviction, as people who get evicted tend to repeat the pattern that got them into trouble over and over.

If you find questionable activity, you could get more information by going to your county or state court house. Most of the information regarding a lawsuit or crime proceeding is public, depending on the area searched. Suits regarding damage to property, illegal activity, or non-payment of rent represent a red flag in the renting process.

Statements from previous property owners also bear weight in such decisions. Contact the tenant's previous landlord and verify the information on the rental application. Keep in mind that some of these sources will not provide information without the written consent of the potential renter due to privacy reasons.

Job references are also helpful in making sure the potential tenant is a good match for the property. Get copies of the last 2 pay stubs to verify income, and call the current employer to verify the quality of the person. Previous and current employers can tell the property owner how their resources were used or cared for, indicating whether or not the potential renter is conscientious of the belongings of others. Consistent work habits and attendance tells the property owner that the potential tenant is responsible and takes pride in what they do.

SUMMARY

Some renters are not perfect in terms of their credit, job history, or previous rental references. Ultimately, it is the decision of the property owner whether to rent to a given person. No matter who you choose to rent your property, a periodic walk-through of the unit will serve to keep the renter in check because you can look for damages and necessary repairs. Doing this simple activity can help ease the mind of the property owner no matter which tenant moves in.

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