Getting a new tenant and the opportunity to bring in more revenue is always an exciting time for a property owner. However, whether you own a small single-family home or a large multi-family residency, it’s crucial to make sure your tenants are going to be a good fit and responsible with your property.
Here’s how to screen tenants in Chicago to make sure you and your tenants have a great experience.
1: Use an Application Process
It’s common for new landlords of smaller properties to try to rent to people they know, or they just do a few basic verifications of someone’s information before letting them rent.
Always use a proper application process for every tenant. Even people you know might not have a good track record for paying bills on time, they might have habits you don’t know about that dig into their finances, etc.
An application gives the applicant a formal way to present their information, you get an easier way to screen, and it provides proof of any claims made if something goes wrong later.
2: Get References to Previous Rental Properties
Most renters who apply for your property will have a record of renting in the past. That’s a good thing because you can verify that they paid their rent on time, took proper care of the property while they were there, and didn’t live disruptive lifestyles that caused problems.
Check your potential tenant’s eviction history, addresses they lived at previously, etc. It’ll give you a good idea of what you’ll experience renting to them.
3: Run a Background Check and Credit Check
Just like an employer wants to ensure they’re not hiring people who are likely to make bad decisions, you have to take that approach with tenants. A background check and credit check can ensure two things.
First, a background check will ensure you’re not renting to someone who poses a danger to the property or the community and is unlikely to be a headache.
The credit check will show that they’re financially responsible enough to handle renting. If they haven’t done well with their bills in the past and ruined their credit, they’re likely to miss rent, pay late, etc.
4: Verify Employment and Income
Even if a tenant seems great on paper with awesome credit, a clean criminal record, and no previous evictions, there’s one important factor you still have to look at. Can they afford the rent?
Having the potential tenant supply paystubs from their last few months of employment, along with proof they’ve been employed for a reasonable amount of time, lets you know if they are financially capable of paying the rent, handling their necessities, and generally affording life in your property.
Hire a Professional Screening Service
These tips for screening tenants help a lot, but they’re only the tip of the iceberg. It’s best to hire a professional property management service such as Paragon Property Management LLC that can do far more in-depth screening as well as handle other tasks.
Call Paragon Property Management Group LLC today for the property management services you need in Chicago.
