Did you know that Texas law demands certain levels of tenant security?
There are many rules to follow once you find tenants. However, it's just as important to screen tenants before you let them live on your property. Finding the right tenants can make a significant difference in the profitability of your rental property.
Are you wondering what it involves? Read on to familiarize yourself with the essential steps for screening tenants. That way, you can make better decisions while leasing one of your properties.
Why Tenant Screening Matters
Tenant screening is vital because it helps you recruit reliable and responsible people. You can rest easy knowing they'll treat your property well.
A thorough screening process also reduces the risk of possible issues. That way, you can avoid a flood of late payments, property damage, or even evictions. By picking the right tenants, you'll have a peaceful and stable living environment for everyone involved.
Outline Clear Screening Rules
Before advertising your rental property, define clear and non-discriminatory screening criteria.
These criteria should include specific aspects. For instance, you'll need to ask for the following:
- Income verification
- Rental history
- Credit score
- Criminal background checks
Having well-defined standards helps you assess all applicants in the fairest way possible.
Ask for a Rental Application
No one should be allowed to skip filling out a rental application. The application should collect basic information. For instance, you'll need the applicant's full name, contact details, employment status, rental history, and references.
A rental application can be used as a basis for further evaluation.
Perform Thorough Background Checks Before Leasing a Property
Background checks ensure you have a complete understanding of the applicant's history. You can confirm their employment status and income to determine if they're capable of paying rent each month.
Check their rental history to see how they treated past properties and landlords. Don't forget credit checks to have a better idea of their financial reliability.
The Risk of Short-Term Rentals
Do you have vacation rentals or Airbnb listings? If so, you should pay even more attention to tenant screening.
Short-term rentals involve a higher turnover. Finding responsible and respectful guests will help maintain your property's value. You can also avoid potential problems.
Use Texas Property Management Services
Do you need help with the tenant screening process? You should take advantage of a reputable property management company.
A professional management service can handle every aspect of tenant screening. Doing this takes the headache out of finding qualified tenants for your rental property.
Screening Tenants Is a Vital Part of the Process
Before you sign anything, it's worth screening tenants in full. That way, your Texas rental properties will be full of reliable people.
Even with screening, it's still important to handle tenant issues and other tasks. PMI Star of Texas is here to help. We offer full-service solutions that can take away your stress.
If you want to get the greatest profit from your rental investments, speak with a PMI representative today.