Question:
“We’re in escrow buying a couple of condos as investments. We want to make sure we get good tenants. Can you suggest any tips for screening potential tenants?”
Answer:
I used to put on a seminar called, “Purchasing Duplex, Triplexes, & Fourplexes as a Home or Investment.” Here are some of the tenant-screening strategies I shared:
1. Look at your prospective tenant’s current home (if possible) and car. If you see last month’s McDonald wrappers and other trash and strewn about the car, guess what your rental will look like in about a month…
2. Look at and make a copy of their driver’s license to be sure they’re telling you their real name.
3. Run their credit! You’ll need their written permission and social security number.
4. Check their eviction history.
5. Check their criminal history.
6. Call and verify their employment and income.
7. Call their EX-landlord…not necessarily the current one. If they’re bad, the current landlord may sing their praises to get them out. But their ex is more likely to be honest.
8. For deposit and first month’s rent, get cash or cashier’s check or wait for any personal check to clear BEFORE they move in! I’ve heard horror stories of bouncing checks and landlords never getting a penny, then going through a long, costly eviction.
9. Get the entire security deposit before they move in. Never take part of it now with the rest to be paid later.
10. Be consistent: Never discriminate and always follow your own rules to avoid possible discrimination lawsuits.
