Whether you’re renting out your first property and trying to build a solid tenant screening process or a seasoned property manager looking to improve your process and get more qualified tenants, you know that a good tenant screening process is key in order to mitigate risks and protect your investment at all costs.
In this blog, we'll cover all the key things a good tenant screening process should include and why. Plus, we’ll share ways TheGuarantors can help you qualify more tenants at no additional cost with our proprietary, AI-based technology.
As a property manager, ensuring a tenant has stable finances is one of the most important factors in a screening process. Stable employment, good credit, and verifiable income are three good traditional indicators of someone's financial status.
But what if a potential renter is an international student without credit? Or, if an applicant is a contract worker without income that can be verified by traditional means? How can you be sure of their financial status and if they can afford to pay the rent on time?
TheGuarantors offers alternative methods for qualifying a candidate, including both rent and deposit coverage. Our machine learning-based risk model considers over 1,000 data points to best predict renter risk so you can qualify more clients and maintain strong levels of protection, thereby decreasing your risk exposure.
Your tenant's safety is your responsibility. This means a background check is a must in a tenant screening process. Background checks reveal if a potential tenant has been convicted of minor and major crimes, such as a sex offense. A liability you'd want to avoid.
However, a potential tenant shouldn't be completely disqualified for a minor offense, and if they are, it might be illegal to do so based on the Fair Housing Laws. As a property manager, this is something you definitely want to educate yourself on and assess on a case-by-case basis.
In addition to a background check, requiring potential tenants to provide references from previous landlords could also help to give you a sense of what kind of tenant the person will be.
Evictions happen for many different reasons, so they're not always indicative of the type of tenant a person will be, especially considering the devastating effects of COVID-19, which caused over twice as many people to fall behind on their rent. A good tenant screening process should most definitely check for evictions, which are public records and can easily be found online.
If your tenant has had an eviction, rather than instantly denying them, you should investigate why and when they were evicted. Or, provide a lease guarantee option, which can help a renter qualify for the unit they want and protect you as a property manager against potential default.
TheGuarantors have the most comprehensive coverage in the industry, guaranteeing over $1.5 billion in rent and security deposits. You can rest assured knowing you have resources available to help improve your tenant screening process.
While the tenant screening process cannot guarantee that a tenant will be perfect, it can help show that you are a consistent and fair property manager. Offering resources and alternatives, like a Security Deposit Replacement from TheGuarantors, can also help deliver strong value to and build trust with potential tenants. If they feel confident that you’re looking out for their best interests, they may stay at your property longer and refer more potential renters your way.
There are many reasons why you need a tenant screening process. But what it usually boils down to protecting your investment by getting good tenants. At TheGuarantors, we’ve invested years into developing proprietary state-of-the-art AI-based underwriting technology that allows us to predict renter default with 85% accuracy. Partner with us to enhance your tenant screening process, boost occupancy, and mitigate risk.
Visit theguarantors.com to learn more today!