Being a landlord in College Station means you are likely familiar with the unique challenges that come with having a rental property in a college town. This part of the city is home to Texas A&M University, which means many of your tenants will be students.
College Station is also known for its high turnover rate and diverse mix of prospective tenants, requiring you to utilize efficient methods when screening tenants.
A thorough screening process will not only help protect you from financial loss and property damage but also minimize the risk of legal disputes. Skipping this step or rushing through it could result in financial loss, property damage, or even legal issues for your rental properties.
The way you approach screening decides whether or not you're renting to responsible individuals who will care for your property and pay rent on time. Let's explore how to do that effectively.
6 Key Factors to Consider During Tenant Screening Process
Here is the list of information you have to check when screening potential tenants in College Station, TX:
1. Credit Report and Credit Score
One of the first steps that you have to do as a landlord during the tenant screening process is to evaluate the credit reports and scores of your applicants. These tenant screening reports give you insight into their financial responsibility and ability to pay rent. A credit report will show you if your tenant has a history of paying bills on time, while a credit score measures their financial health.
What to Do: You can have effective credit and background checks for your applicants by looking for red flags such as unpaid debts, late payments, or a low credit score. While not every tenant will have perfect credit, a pattern of missed payments may indicate future problems.
2. Criminal Background Check
Another crucial step to screen tenants is running a background check for criminal records. A criminal history may not automatically disqualify a tenant, but it’s essential to know what’s in their past to make an informed decision.
3. Rental History
Checking a tenant’s rental history is vital in understanding their past behavior as renters. Contacting current and previous landlords can provide insight into whether the prospective tenant paid rent on time, caused damage, or violated lease terms.
What to Do: When verifying your applicant's rental history, you have to ask their previous landlord about their habits—did they communicate issues promptly, respect property rules, and leave the unit in good condition? A solid rental history suggests this potential tenant will likely be responsible in your property as well.
4. Employment and Income Verification
Income verification can ensure that the applicant can afford the security deposit and rent. A good rule of thumb for this is to ensure that your applicant's monthly income must be at least three times their rental fee. This factor will help you gauge whether your future tenant can consistently make payments and avoid financial issues that may lead to missed rent.
What to Do: You can verify their employment through recent payslips, or if they are self-employed, you can request for tax returns or bank statements. If the applicant consistently earns more than their monthly rent, they are generally more likely to pay rent on time.
5. Personal References
Personal references, while often overlooked, can offer useful information when checking your prospective tenant's character. Although it is not as important as checking their employment or rental history, personal references from their previous landlords or employers can help you make a more informed decision whether to accept their application or not.
What to Do: When talking with your tenant's references, make sure to ask about the applicant's reliability, how they handled disputes, and whether they respected property rules indicated in the lease agreement.
6. Eviction History
College Station, TX is home to a large, transient population of students and young professionals which is why it is essential for you to properly assess the eviction history of your applicants to protect your investment.
Evictions typically mean that a tenant had serious issues in their previous rental home, that may involve financial instability, conflict with the landlord, or even violation of lease agreements. It’s your job as a landlord to dig deeper and assess if these past issues are isolated events or part of a recurring pattern.
What to Do: When reviewing your applicant's eviction history, make sure to check for patterns and consider the timing. It is also important that you look at the reason behind the eviction and verify it through official records.
Red Flags to Watch Out for Prospective Tenants
Tenant screening can be an overwhelming process for you as landlord since you have a lot of information to cross check to ensure that you get the best tenants for your rental property business. Beware of screening myths and watch out for these common red flags:
- Inconsistent employment history
- Previous evictions
- Lack of personal references
- Tenants who refuse to provide necessary documentation
- Renters who have a history of unpaid rent
It's crucial to balance your aim to implement a thorough screening process with the need to treat all your applicants fairly and avoid violating fair housing laws. You can achieve this by ensuring that your screening process doesn’t discriminate against any protected classes, as defined by the Fair Housing Act.
Best Practices for Screening A Prospective Tenant
Screening prospective tenants can be time-consuming for you but it’s worth the effort to find the right fit for your rental property. Here are a few tips to streamline the process:
- Be consistent: Apply the same screening criteria to all applicants to avoid discrimination claims. Make sure this criteria is documented for verification purposes.
- Stay organized: Keep thorough records of all applications, background checks, and communications with prospective tenants.
- Be fair: While it's important to protect your investment, it’s also equally crucial to treat all your applicants with respect and fairness.
Streamline Your Screening Process through Tenant Screening Services
If you don’t have the time or expertise to conduct thorough tenant screenings, professional tenant screening services offer a convenient solution. These services can provide you with comprehensive reports that include credit checks, criminal background checks, eviction history, and employment verification. By outsourcing your screening process, you can save time and have the assurance that you’re getting reliable, in-depth information about your prospective tenants.
When you choose a tenant screening service, you must consider the type of reports the company offers and whether they meet your specific needs. You also have to look for services that are compliant with fair housing laws to avoid any potential legal pitfalls.
Blue Ribbon Property Management offers a complete package for quality tenant placement. We will not only provide you a thorough tenant screening process but also help you with other leasing procedures such as:
- Pre-leasing Inspection
- Professional Photos, Floorplan PDF, Virtual Tour & Video Tours
- Aggressive Marketing
- Extensive Internet Syndication
- Social Media Marketing
Let us help you reach your ultimate goal of finding the right tenant who will help ensure a positive, long-term rental relationship! Start your partnership with us and ensure a thorough and compliant leasing process.
Drop us a message for expert assistance with managing your rental property and screening tenants in College Station, TX.
