Landlord’s Guide To Dealing With Rental Applications

For a landlord who is looking to rent out their second property, it’s easy to get overwhelmed by the sheer number of rental applications you’re likely to get in your search for that ‘perfect tenant’. Of course, the primary objective of venturing into that tall pile of rental applications is finding a reliable tenant –  who’s on time with their payments reliable enough to leave your property just as they had received it.

You might ask yourself, why is it so important to find the ‘perfect tenant’? You must find that ‘perfect tenant’ so that you can retain them. Retaining a reliable tenant saves you additional costs associated with finding a replacement to your existing tenant. A vacant property does your interests no good and continual revenue generation is the key to success. That’s the precise reason why it’s important to maintain your rental home in the first place. However, for your plans to advance to that stage, you need to freeze the perfect application for rental accommodation. And, here’s how you go about achieving that:

The Power of the First Meet

It all starts when the prospective tenants come looking for a property that befits their needs. This is the time when you’re hospitable to the tenants and address their questions with patience. This is also the time when you start filtering out the decent ones on a subconscious level. It’s not a bad idea to look for certain red flags on the basis of which you weed out the undesirable tenants. For instance, a prospective tenant late by some margin without a prior notification of the same is not worth the effort. Or maybe, an undesirable tenant is the one who makes unreasonable requests or asks inappropriate questions at the time of the meeting.

Alternatively, consider hosting an ‘open house’ where a group of tenants is touring your home together. This will surely add pressure on the tenants to speed up the process of filling rental applications for rental accommodation.

Rental Applications – All You Need to Know

Naturally, the most cost-effective and brisk way to get started with this search is through filtering out the good rental applications from the weaker ones. This is not an instinctive process. You’re going to need to follow a set system to get the results you desire. The details you’re going to need from a standard application form for rental accommodation include the following:

1) The Applicant’s Job

Some say ‘you are what you eat’. Others say ‘you are what you wear’. We say ‘you are what you do’. The details about the existing job of the prospective applicant tell you a lot about the person behind the application. The job the applicant is currently doing gives you an insight of the sophistication or refinement of their ways. Engaging with a respectable manager is certainly a smoother experience for a landlord. Also, the job profile of the applicant tells you much about the kind of income they generate. When you’re renting out your property to an applicant who is generating a high income, you will naturally feel more secure about receiving regular payments. And, lastly, the employment details of the applicant instantly eliminate skepticism about their genuineness. That’s why this should be the first entry on your application for rental accommodation.

2) The Current Address

You need to know about the current address of your prospective tenant for multiple reasons. Firstly, you need their current address to establish an official means of correspondence; to establish that legality. Also, the quality of their previous accommodation gives you more assurance about the tenants’ capacity to afford a rental accommodation of high quality. An applicant without convincing information about their previous place of accommodation is suspicious. It can also be interpreted as an attempt by the applicant to prevent their next landlord – who could be you – to establish a line of communication with their previous landlord. Don’t miss out on such a crucial piece of information.

3) The References

As a landlord, you’re most likely going to prefer the tenant references to be those of previous landlords of the tenant. It’s not hard to see why. And, those tenants who list down previous landlords as references have nothing to hide. Additionally, even the employer of the tenant is a worthy reference to consider. It certainly counts more than familial references.

A reasonable landlord has nothing but a liking and respect for a decent tenant, and such a landlord will have no qualms mentioning good things about their ex-tenant. On the other hand, an irregular tenant impresses nobody, and there’s practically no reason for a landlord to recommend such a tenant to others. Now, why would a good tenant mind mentioning their list of references? A good tenant clearly wouldn’t mind you making the necessary verifications. And, this is why you must always make some space for references in the application for rental accommodation you’re preparing.

4) The Identification

Even though it’s highly unlikely for a tenant with a sound rental application to be an outright fraud, we still believe landlords must make it a habit to seek valid government-backed identification. You do this not only to erase your suspicions about the possibility of a fraud but also for the sake of a future requirement of such documents. In the event of a mishap, when the authorities come looking, it helps to be backed with all the relevant information pertaining to the identification of the tenant you’re looking to hire. For all you know, the tenant in question might well turn out to be the tenant you had eventually hired. The last thing you want in a complicated situation is lack of concrete identity proof.

5) The Trick Questions

How do you separate two particularly good tenant applications? You could perhaps add a handful of questions that gets the applicant thinking. You can frame some questions yourself, depending on your requirements from your tenant. And, since you have complete control over the property, you can select a tenant who answers these questions according to your requirement. Let us help you with a set of sample questions for an idea.

You can ask about the family members of the tenant or you can perhaps ask about pets if you prefer tenants with pets. You can also ask a couple of situational questions to understand the prevalence of common sense or to see how practically a tenant would react in an emergency situation.

The Assessment

After you’re done with collecting all the relevant information pertaining to the application for rental accommodation, you must start with the assessment. This is where you can’t afford to make mistakes. It’s a time-consuming process, surely. But, that’s the price a landlord must pay for their peace of mind and a steady means to revenue generation. Here’s how you can go about it:

1) Conduct a Comprehensive Verification

Start with the verification process. You can start by making sure that the details provided by each candidate in their application for rental accommodation are true. After you’ve cross-checked the information they’ve provided about their existing residential address and their existing job, proceed to the references. Dial up the references, ask a couple of questions about the candidate in question, and only proceed with those applicants that you’re convinced about. Lastly, compare the answers to the questionnaire you’ve designed. You can be subjective here, as long as you’re not discriminating on the basis of sex, gender, race, nationality, and religion.

2) Run a Credit Report

Here’s probably the most crucial part of your assessment. You need to ascertain your tenants’ financial reliability. Conducting this on your own might be a costly affair, and that’s the reason why some landlords prefer an extensive property management contract. The credit history of the prospective tenant will give you some insight into the tenants’ past. Information such as previous bankruptcies and payment history is invaluable and can make or break a tenancy application.

3) Check the Criminal History

No landlord wants their tenant to be a convicted criminal. This is exactly why checking the criminal history of those tenants that you have shortlisted is mandatory. If the candidate themselves inform you about their criminal history, you have a subjective decision on your hands.

It’s increasingly difficult to conduct such thorough research and investigation on your own. And, that’s the reason why it’s best to rely on the professional services of a reliable property management company delivering consistent landlord services. Opting for a property management contract offered by such a company is the safest, most hassle-free approach. The advantage of their services is that your property gets an online listing amongst other quality rental properties in your locality. Contact us to get more information about the scope of a property management contract.