America's up for rent! The median asking rent for rental properties during the second quarter of 2022 was more than $1,300 a month. If you have just 10 tenants and you ask for the median amount of rent, you will make more than $150,000 a year.
Now is the perfect time to become a real estate manager or landlord. But you must not rush anything. You need to develop a comprehensive tenant screening process so you find reliable and stable tenants.
What should you do before you meet tenants? Can you conduct background checks on your tenants? Who should you talk to about your applicants?
Answer these questions and you can attract the best tenants in Denver in less time than you think. Here is your quick guide.
Before you start finding tenants, you should do your research on tips to attract good tenants in a rough market. You should be comfortable with using social media so people know about your property. But you should start the screening process with prescreening.
Prescreening means writing a good online rental listing that will deter bad tenants from applying. You need to be specific about what your property is like. Describe the amenities of your property, its aesthetics, and the neighborhood around it.
Show your property to people in your neighborhood. 65% of all moves occur within the same county. Opening your door will allow the people who are the most likely to buy your house to see your property for themselves.
Run Background Checks
Background checks let you see your applicants' criminal records. You cannot turn down an applicant because they have a criminal record. But you can refuse an applicant who has a history of violence or vandalism to the property.
You can also check your applicants' eviction histories and credit scores. You can decline a tenant who has a history of failing to pay rent or low credit.
Look Over Rental Applications
Your application should ask for several details from the applicant. According to these Seattle property managers, they should give their contact information and answer questions about their past with renting properties.
They should discuss if they have ever been evicted or refused to pay rent. If they lie to you about this, you can decline them. But read their answers for why they have been evicted, as they may have had abusive landlords.
If an applicant has had previous landlords, you should talk to them. You can email them or talk to them on the phone. Keep in mind that some people may be too busy to talk to you, and you shouldn't decline someone just because their references are busy.
If an applicant has not had previous landlords, you can talk to their boss or coworkers. Get a sense of how responsible they are.
Start Your Tenant Screening the Right Way
Tenant screening is more complicated than you think. Examine the strategies of other landlords, then prescreen your tenants with a good rental listing. Run background checks as soon as you receive calls from applicants.
Ask your applicants to provide details about themselves. If they lie, you must reject them. Talk to references to verify their information and get a better sense of the personality and work ethic of your applicants.
Once your tenants have the keys, you need to manage the property for them. Mavi Unlimited helps Denver landlords with property management. Contact us today.