When it comes to screen applicants, each property manager has their own set of criteria that potential resident(s) must meet. These principals are applied to each prospective tenant (s). The same criteria must be applied to every applicant that walks in the door. Establishing a consistent screening process when renting an apartment or a house drastically reduces the threat of discrimination lawsuits.
So what’s important to you? While there are always exceptions to this, a good credit score is a great first indicator that applicants may be reliable residents. However, it’s important to note not everyone with a high credit score is a good resident risk, and that not everyone with a low credit score is a high risk.
Another key indicator is job history. In fact, the prospective tenants’ job history may be more important than their good credit score. Applicants’ stable job history usually indicates they are responsible, reliable, and dependable. Outstanding applicants are the ones with a stable job history rather than just a high credit score.
Good rental references are other solid indicator of an applicants’ level of risk. Along with a stable job history, good rental references indicate that the applicants will pay their rent reliably, will likely not destroy the property, and will leave it in good shape when they move out. What more could a property manager want?
Criminal background is another area that needs to be looked at. While at times, this can be a judgment call, violent crime or drug convictions should immediately raise a red flag in the approval process.
We know that some property managers and leasing agents who base a large part of their decision on appearance. However, this can be a major mistake in many ways. Dress is much more casual these days, and dressed-down applicants do not indicate that they are unable to pay the rent. More importantly, neatly dressed individuals provide no guarantee that their rent will be paid on time. However, personal poor grooming or an unclean appearance could be reflection of a potential lack of care of your property
While a lot of property managers have developed a sixth sense of sorts when evaluating applicants, it’s important to make sure that your rental decisions are based on facts and documented for your records. Careful attention to the criteria you set will ensure that your good applicants turn into good residents.