When you work as a landlord one of the most important aspects of your job is the tenant verification. There are four important steps that you will need to do in order to complete this task.
The first step in the process is to gather data on a particular tenant. This generally involves having them fill out an application, though you will also want to charge them the $25 you will need to cover the cost of the tenant’s credit report. It is also important to make a copy of their driver’s license and obtain their last two paystubs from them. Once you have gathered this information you will then be able to move on to the next step in the process.
Step number two in the tenant verification process is to use an online service to conduct a credit check on the tenant. You have a legal right to obtain a summary report from a landlord company that practices tenant screening. This report assigns a score to a particular applicant and recommend or not recommend renting to the tenant. The National Tenant Network is a reliable resource you can use to not only find out if a tenant is a credit risk but also determine whether or not they have ever been evicted from a rental property before.
The third step in this process is to verify the tenant’s employment, as well as their income. Legally the only pieces of information you have access to include where a tenant works, how long they have worked there and how many hours they work in a typical week. While you may ask a tenant’s employer their thoughts about their employee/your tenant, the employer is not required to divulge that information. Having this information, combined with a tenant’s recent paystubs, can help you make the decision about whether or not to rent to them.
If your tenant has a previous landlord, the fourth step is to contact them. They should be able to give you insight into what kind of tenant you would be entering into a rental agreement with. You can also find out if the tenant ever had a problem paying their rent on time and in full. This is important information to take into consideration when you are making your decision.
Once you have reached a decision you will have to inform the tenant if they are able to rent from you or not. If you are willing to rent to them it is proper to call them and tell them the news. This gives them a chance to ask you any relevant questions that they have about the situation. If you are not willing to rent to them take the time to compose a letter or find a form letter online and download it for your use.
Following these steps makes the tenant verification process efficient, legal and fair to both you as the landlord and the other individual as a new tenant.