What does a messy car have to do with a bad tenant?
- Christian Bryant
- Apr 9
- 3 min read
Most landlords understand the importance of a thorough tenant screening process when deciding to approve or deny rental applications. Surprisingly, many landlords I encounter skip this crucial step and rely solely on the information provided in tenant applications. This oversight is particularly common among property investors who manage their own rentals, either due to time constraints or a lack of knowledge about obtaining necessary background reports.
In my view, neglecting tenant screening is one of the most costly mistakes a landlord can make. Applicants with criminal records or poor rental histories are unlikely to disclose this information on their applications, banking on the assumption that landlords will not conduct a comprehensive screening. This is especially true when the property owner is also the property manager. Many problematic tenants avoid applying to professional property management companies like www.NWRPM.com because they know that we prioritize detailed tenant screenings.
Effective tenant screening begins with the initial communication, particularly during property showings. Always be present for showings; never simply hand over a key or lockbox code. Not only does this prevent vandalism, but it also allows you to initiate the screening process. Your ultimate decision to approve or deny a tenant should be based on a comprehensive understanding of their background and responsibility. While some negative aspects may be overlooked with sufficient positive indicators, it’s essential to gather the complete picture.
Engaging in conversation while showing the unit can provide valuable insights into a tenant’s demeanor and behavior. Additionally, you can utilize a few subtle strategies during the showing. For instance, walk the applicant to their car at the end of the showing. This polite gesture allows you to gauge their lifestyle; if they claim to be non-smokers, you can verify this by noticing any cigarette odors as they open the car door. Furthermore, a quick glance inside their vehicle can indicate their cleanliness and organizational habits, which may reflect how they will maintain your rental property. While a messy car isn’t an automatic disqualifier, it contributes to the overall assessment during the screening process.
Once an application is submitted, don’t overlook the importance of ordering background reports. This process is more straightforward than you might think. A simple search for “tenant screening” on any search engine will yield numerous options. I personally recommend using these services to obtain credit, criminal, and civil court reports. These documents reveal whether an applicant pays bills on time, has a concerning criminal history, or has faced eviction in civil court.
Regarding credit reports, focus less on the numerical score and more on the applicant's financial behavior. Some of our best tenants have experienced foreclosures during economic downturns. Instead of fixating on the score, investigate the reasons behind it and their actions following any delinquencies. If a collection account appears, check the timeline of their last payment and whether they are currently up-to-date. If necessary, request payment verifications from the applicant. Everyone can face financial hardships, but it’s vital to determine if they have taken responsibility for their past actions.
When evaluating criminal records, exercise your best judgment. Certain offenses, particularly violent crimes, are more concerning than others. If an applicant has a history of violent crimes and is applying for a unit in a multi-family building, it’s prudent to avoid such applicants due to potential risks to neighbors. Additionally, be wary of dishonest crimes like fraud that may indicate trust issues.
The civil report provides insights into any past lawsuits or evictions involving the applicant. If an eviction is present, it’s essential to consult the previous landlord for their perspective. Often, the current landlord may provide biased information to expedite the tenant’s departure. The previous landlord, having no vested interest, is likely to give an honest account of their experience. Key questions to ask include the tenant's payment history, any adverse action notices issued, and whether they would re-rent to the applicant. Additionally, inquire about any damages incurred when the tenants vacated and how they managed any outstanding debts.
The primary takeaway when screening tenants is that thoroughness is crucial, regardless of your busy schedule. Document every factor influencing your decision. Should you deny an application and the applicant challenges your decision, having documented evidence will support your case. In our company, we typically conduct only 1-2 evictions annually, despite managing properties in Portland, Salem, Eugene, and surrounding areas. This success is largely due to our rigorous screening process, which ensures that tenants are aware that any negative aspects of their background will likely come to light.
Happy Screening!
Christian Bryant
President
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