One of the most important landlord tips experienced landlords are aware of is the proper screening of tenants.
Beginning investors are often too anxious to just fill the property with anyone to help make the payments. This path leads many investors to a steady stream of headaches, evictions and some even to bankruptcy.
It is very rare the first tenant you find is the ideal tenant and if you are in a situation where you are spread so thin you have to take them it may already be too late for you. To make the process of screening tenants easier, you should have a standard application form of some type for every potential tenant to fill out.
At a minimum, it needs the contact information of their current employer, current landlord and their previous landlord(s). As the landlord it is imperative to call all of these contacts and verify employment (they need work to pay the rent), wages (if they do not make enough to cover the rent, how will you get paid), that they gave proper notice to their current landlord (if they don’t respect their current landlord enough to provide notice, why would they do it for you) and that they have left amicably with current and former landlords.
Be aware that their previous landlord may not be the best source of information. If they are sub-par tenants the current landlord may not provide all the information you need just so they can have them out of their property while their previous landlord may be a little more forth coming with the whole truth, ugly or not! If you spend the hour or two making calls and following up it will save you from the myriad of headaches a bad tenant can bring.
If you missed Tip #1, it is available here, Landlord Tips #1, Don’t buy where you live, buy where tenants live
Tip #3 is available here, Landlord Tips #3, Being a Landlord is a Business, Treat it Like a Business
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I needed this advice over a year ago. I learned this lesson the hard way. Still in the process of garnisheeing his wages.
I used this advice the second time around and now seem to have solid tenants. Thanks Bill
I have a good landlord and am a good tenant but the 3 tenants downstairs are from hell. In 2 months they have destroyed some of his property, left 9 bags of rotting garbage on their back deck. Scream,yell holler loud music doors banging. Stay up all night and sleep til lunch. Leave their door open so the noise floats upstairs and the list goes on. Now they are making committs about punching me in my F—ing head if they see me. I made it my job to report it to the landlord and took pictures and videos of the sounds from inside my apartment but some of the problems are becaused they are from both apartments are illegal suites. Example, my apartment door is made from a pine door with with plexe glass taking up most of it so for privacy you need a full curtain so people don’t see in. Half an in of wood at the top as support frame and 3 feet of open space to the ceiling and 2 feet of open space above the kitchen cupboards. Posts like yours help me and the landlor who lives in Vancouver and I in Airdrie.So thank you please keep them coming so we can all learn from them.
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It’s true, screening is everything. When I was just starting out as a landlord, I didn’t always do all of the necessary checks and to be honest, I didn’t know everything I was supposed to do. Live and learn…now I have an extensive screening process in place and I follow it to the letter every single time. It’s well worth the extra time and effort as the result is good, long term tenants. I have all the necessary forms on my website including an application form, lease agreement, accommodation inspection report and a landlord checklist. This would be very helpful for beginners getting into this business.