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As a landlord, how you screen tenants can make all the difference for your return on investment (ROI). A good tenant screening process can help ensure you always have great tenants on your property. 

On the other hand, not paying too much attention to the quality of the tenant you rent to can have devastating effects on your investment. You’ll have a high likelihood of experiencing late or missed rent payments, and careless property damage. 

Your ultimate goal as a savvy landlord in Riverside, California should be to minimize stress and maximize your ROI. One way of doing that is thoroughly screening prospective tenants.  

The following is a quick guide to get you started!

Know The Qualities You Are Looking For 

Of course, you want to find the perfect tenant. This is a tenant that has good creditworthiness, a solid rental background, a stable employment history, and a squeaky-clean criminal record. 

Once you’ve done this, start crafting your lease agreement in a way that helps you get such tenants. Just make sure that the process is fair and equal to every applicant to avoid any breaching of Fair Housing laws.

Pre-Screen Tenants

This will help you get basic insights about prospective tenants to know whether or not they meet your basic criteria. This can help you save valuable time on tenants who wouldn’t otherwise make the cut. 

Prepare a list of questions to save time and to ensure consistency for all applicants. The following pre-screening questions should get you started. 

• When are you looking to move in? If they want to do so immediately but the property is unavailable for immediate occupation, continue your search.
• Are you ready to sign a one-year lease? Go for tenants that align with your goals, whether that be yearly leases or month-to-month.
• Do you have a pet? If you allow pets, make sure to have a policy that has certain limitations, and continue your search if the tenant exceeds them.
• How many people will be living with you? Make sure to familiarize yourself with any occupancy limits in your city to stay compliant. 
• Have you ever been evicted before? Generally, past behavior is an excellent predictor of what the future holds. As such, if the tenant has a past eviction history, that could be a red flag.
• Why are you moving? Look for legitimate reasons for moving. For instance, relocating for a job, requiring more space, or recently getting married.

Rental Application Forms

Collect as much information from every prospective tenant as possible. Again, require the same for every applicant for the sake of fairness. Requiring different information from different tenants can get you in trouble with the California anti discrimination laws. 

The following are some of the details you can require from the prospects. 

• Their personal information, including full name, date of birth, social security number, driver’s license number, and contact details. 
• Their employment details. Such as their current employer, job title, gross monthly income, and length of employment. 
• Their rental history, which should include details of the previous landlords and the reason for moving. 
• The prospective tenant’s credit rating. 
• If you accept pets, information about the number, breed, age, and proof of vaccination. 

Other things you may want to require the tenant to provide include the number of occupants and their emergency contact info. 

Income Verification

Now that you have the details, begin verifying them. When it comes to a tenant’s income, go for tenants making at least three times the monthly rent. For example, if you’re charging a tenant $1,500 a month, look for tenants making at least $4,500. 

That said, this doesn’t mean you should outrightly reject any tenant making less than that amount. Find out more about their financial situation. 

To verify the tenant’s income or employment status, contact their employer using the details provided on the form. Ask the employer the following questions. 

• Is this tenant working in your company or organization? 
• What is this tenant’s job title or position? 
• Is the tenant employed on a part-time or full-time basis?
• Has there been any disciplinary issues or complaints about the tenant while employed? 
• How much does the tenant make? 

If the tenant’s details match with their employers’, continue with the next step. Call prior landlords to confirm the details on the application form.

Call Prior Landlords 

If applicable, contact current and prior landlords. If you solely rely on the current landlord, you risk not getting the right information, especially if the tenant is relocating due to a conflict. On the other hand, the risk of misinformation from prior landlords is lower, but their knowledge may be out of date.

Ask them the following:

• Did the tenant pay rent consistently? 
• Did the tenant pay utility bills on time? 
• Have you ever received noise complaints from the tenant’s neighbors? 
• Has the tenant ever caused property damage? 
• Why did the tenant decide to move out? 

Background Checks 

Analyzing a tenant’s credit and background report can help you get the following information. 

• Credit rating
• Complete account history
• Criminal history
• Prior evictions
• National sex offender check

Go for a good background check service. Please note you must have the tenant’s consent. 

Conclusion 

Knowing how to screen tenants properly is one of the most important skills a landlord can have. Just make sure to keep the California fair housing laws in mind throughout the process. Alternatively, hire Superior West Property Management. Whatever you need in property management, we’ve got you covered. We service Riverside and the surrounding areas. Get in touch to learn more!