If you're
landlord of a complex in high demand, you have to have high standards for your tenants. You don't want to rent to any Joe Blow and then lose building a month later because he's been growing an "herbal garden" in bedroom. In order to avoid any complications with your new tenants, background check you perform should be extensive.Typical rental applications look something like this... but if your apartment or home is in high demand, you should have high demands on your applicants as well. Don't be afraid to ask more questions. Being a little nosy can save you from some future stresses.
The sample application asks for current employment information, but it's a good idea to request previous employment information as well. Sally may be a great employee at Buck's Bar... but if she's only been employed there for a few weeks, it's a good idea to contact her previous employer. Did she walk out? Was she constantly late? Was she fired for inappropriate behavior?
Likewise, you'll want tenant's previous (not only current) landlord contact information. If you only talk to your applicant's current landlord you may hear nothing but wonderful things, but that landlord may just be saying them to get rid of terrible tenant! The previous landlord, however, has nothing to lose by telling you blunt truth. Find out if applicant was consistent with payments, or if he or she caused any trouble for other tenants.
Ask about annual income. According to many property managers, rent should not be more than 33 percent of income. If you do math, and it doesn't look like applicant will be able to afford rent, you should ask them about their plan. Robert Irwin, author of The Landlord's Troubleshooter, Dearborn, asks applicants bluntly: "Do you figure you'll be able to handle monthly rent payments?" Irwin explains that good tenants will usually spout off how they plan to budget for apartment. It's still important to check out their finances through their employer and credit history to find out if they're telling truth.
