If you’re looking for a new home or apartment to rent, you’ll quickly find that Northern Colorado property management companies require you to fill out an application and go through a tenant screening process. Tenant screening is an important step because it helps property managers and property owners feel confident with the person that will not only be living in the home but also caring for it and paying for it.
Why Do Property Managers Screen Tenants?
There are many reasons for screening tenants and requiring applications. A rental property is someone’s investment or it may even be their livelihood. In order to protect that and make the most out of it, there must be steps in place to ensure responsible tenants. Knowing to screen potential tenants can save the property management company money and it will also save the property owner money by minimizing the risk of a bad tenant.
What Do Property Managers Look For in Tenants?
When property management companies look for potential tenants, they are first and foremost looking for a person that they can entrust their property to. To choose the best tenant for their rental, they must look at a number of specific factors to give themselves a better chance at finding that tenant.
1. Tenants With a Good Credit Score
A credit score and credit report provide a glimpse into how financially responsible a person is and has been. Running a credit check will provide property managers with some key insight into a tenant’s financial history. Credit checks show:
- Credit score
- History of on-time bill payment
- Repossessions or foreclosures
- Delinquent accounts
- Amount of debt compared to amount of available credit
- Debt to income ratios
2. Tenants Who Have the Means to Pay Rent on Time
Another important consideration for property managers is to have the confidence that a potential tenant will be able to pay the rent. They often ask for copies of pay stubs and may even call employers to verify employment, income, and length of employment. On some applications, tenants might also be required to outline monthly expenses to provide reassurance that their monthly income is enough to cover the rent and their bills.
3. Tenants Who Are Not Dangerous or Violent
Tenant screening processes always include a criminal background check that will show a history of criminal, violent, or dangerous behavior. Typically, landlords are cautious of applicants who have been convicted of a violent or serious crime or have shown a pattern of criminal activity. Property managers will want to avoid the risk of endangering neighbors, the community or even themselves, but they also want to avoid any possible situations that could result in damage to the property.
4. Tenants With a Good Rental History
The best applicant is one with a stable and positive rental history. Applications usually require information about previous rentals including landlord information, length of time at each home, and any record of negative actions such as evictions, late payments, conflicts, or damages to the property. A potential tenant’s rental history provides property managers with an idea of how well the house will be cared for, but it also gives them an idea if there will be a respectable relationship between themselves and the tenant.
5. Tenants With References
A tenant who can provide personal or business references and preferably references from previous landlords is typically considered a good applicant. References are an effective way to support the information provided on an application. They may be used to bode confidence in how well the property will be cared for, financial responsibility, or speak to the character of the person or people living in the home.
6. Tenants With Lifestyles That Fit the Terms of the Lease Agreements
Each property owner will have specific requirements and conditions for living in their home. For example, many do not allow pets or smoking in the home. These things are not meant to be discriminatory; rather they are put in place to protect the condition of the home. These factors do not automatically disqualify a potential tenant; however, they are carefully considered.
Northern Colorado Property Management
All Property Services offers experienced property management services across Northern Colorado. Our tenant screening process and application is conducted professionally and efficiently to help property owners find the best tenants for their homes. To learn more, contact us today!