You reduce the risk involved in having to deal with tenants through proper selection in by checking credit and personal references. The majority of problems faced by landlords can be traced to lax procedures in checking references or misplaced trust.
- Screening tenants. If rental demand is high and stable, you will be able to select from among many applicants. In order to quickly identify the best tenant you need to get a written application. this is the first step and checking whether tenants can provide the basic information you need – employment verification, current landlords name, a bank account reference, and monthly salary verified with copies of recent pay stub’s. We provide a form online and encourage you to ask all your applicants to complete it. our form is very basic but defective some applicants who failed to fill out even a short form, meaning that they know they cannot refer you to their landlord, that they do not have a bank account, or that they have no income. Any of these problems disqualify the person based on even a cursory review. There were four requiring a written application is a necessary first step and helps you avoid doing lengthy showings and providing missleading interest. You might find it surprising and amazing but many tenants will apply for your vacant rental especially in a hot market even though they have no reasonable expectation of making rent payments. Verification including calling the person’s employer to confirm income is essential to protect your investment.
- Checking references. The second step is checking all references. The importance of checking references, even when your instincts tell you that all is well, cannot be emphasized too much. Called both current and past landlords to determine whether they will provide positive recommendations. If the applicant does not provide you with both landlord references, or they simply don’t have references to give you, that should disqualify them. You want two landlord references because sometimes the current landlord is so motivated to get rid of the tenant that the reference will not be objective or accurate. also, talk to the employer. Is the report salary level and dates of employment accurate? You also want to make sure that the individual doesn’t fact have the job and it’s in good standing. At this stage, you simply want to verify information the applicant has provided to you. There’s no way to ensure that employment will continue into the future, and the step is intended only as a fact checking phase. if the applicant is self-employed, you cannot verify income in the same manner. You will need to get a copy of the person’s bank statement for the past two or three months to ensure that deposits are going into the bank. There is no reason to reject an application just because the applicant is self-employed; but as with all forms of information, you need to be able to veryify What you’re told on the application.
- Reviewing credit history. You may want to collect a small fee from the applicant to run a credit check.
- Checking legal history. It is also easier most provinces to Macek legal history, since it’s part of a public record.
- Being alert to warning signs. Some tenants cannot afford the rent you were asking. They may try to barter with you for part of the rent by doing work around the place, or performing landscaping chores for offering to paint the house. These are warning signals. You are probably not going to have a positive experiencing in hiring tenants in exchange for rent for any purpose if the tenant cannot afford to pay the full amount of rent, the application should be rejected.
- Renting month to month. If you are unsure of how long you wish to read to specific tenant, offer a month-to-month arrangement rather than a lease. The month to month option protects you; if the tenant does not pay rent, it is easier to give notice under a month two months arrangement. Having at least gives you a legal contract, but if the tenant is a deadbeat, is unlikely that you will be able to collect with the person owes you. The month-to-month idea may make more sense. In some provinces simply a very short lease like one or two months at a time is a more appropriate choice.
- Using a management company. You could also hire a management company to deal with tenants directly. The service will cost you a percentage of rents collected, and some management companies are better than others. So, even if you hire a company, you need to check it out before hand as well. Join the local landlords Association if there is one in ask other members for referrals to local management companies.