Experienced landlords won’t think twice to deny an applicant who fails to meet the requirements for renting one of their units. A bad or irresponsible tenant can cost landlords thousands of dollars and take months, if not longer, to remove them from their rental property.
While most tenants are not inherently bad, there are a few traits that landlords can look for to avoid a sticky situation. Landlords should look for someone who has:
- Financial stability
- A decent to good credit score
- A clean criminal background
The wrong move can be costly and time-consuming, so getting the right tenant moved in the first time is key. Here is what we help our landlords look for at Kajen Rentals:
Provide Proof of Financial Stability
Tenants should demonstrate financial stability when applying to rent. When tenants meet the income requirements, they’re more likely to make their monthly payments on time and less likely to become an eviction nightmare. Here are the financial details landlords should look for:
- Does the applicant meet the income requirement? The industry practice requires proof of income equal to three times the monthly rent. Applicants who do not meet this requirement may need a qualified cosigner.
- Does this applicant have a good credit score? According to MyFico.com, a good credit score is 670 or higher. A high credit score does not just indicate that someone can pay off debt, but it also shows that they take on debt responsibly. Meaning that it’s unlikely they will take on debt that inhibits their ability to make their rental payment on time.
- Can the applicant prove they have stable employment? You will want proof that your potential tenant has a job and that their position is verifiable. Employment can be verified through W-2s, pay stubs, bank statements, and even an official employer offer letter with a clearly stated pay rate.
Show a Positive Rental History
While a credit report provides insight into how a tenant manages their debt, it does not show any evictions, bounced rental payments, or damage to past rental properties. In fact, if they owe money to a previous landlord, it might not appear on their credit report at all, as these types of debts are rarely reported or sent to debt collectors.
Gathering information to review their rental history is paramount, as it can provide insight into who a tenant is beyond a credit report. Landlords typically use screening services and run eviction reports to identify past evictions or rental agreement defaults. These screenings will also show how long a tenant has been renting and whether they’ve stayed to the completion of their lease agreements.
Pull a Clean Background Check
The ideal tenant poses no safety risk to the rental unit or other tenants. One way to determine this is to pull a clean background check on a rental applicant. Background checks are used to find any felonies, misdemeanors, drug charges, and sex offenders. TransUnion reports that choosing tenants with clean backgrounds not only protects other tenants and neighbors but also protects the investment property.
Let Kajen Rentals Help Find Your Next Tenant
Landlords should find a tenant who is financially stable, with a strong and clean rental history, and who has a clean background report. Focusing on these traits will help ensure the future tenant is less likely to default on their monthly payments, avoiding a long and painful eviction process.
Finding a good tenant can be challenging, but with the right property management company at your side, the vetting process is much easier. If you are looking for help finding your next tenant, reach out to Kajen Rentals. Our property management company helps Louisiana landlords out of Monroe, West Monroe, Bastrop, and Oak Grove, and now we are also assisting landlords in Crossett, Arkansas. Don’t wait and contact us today.