Need Help Screening Tenants?

Admin
Published Date: 2023-09-27

Screening tenants for your short-term rentals is an essential part of running a business. Evictions are frustrating and can result in lost profits, so the best thing to do is ensure the people you bring in are screened and qualified. We’ll share all the steps of tenant screening so you can follow along.

1. Prescreen

The first step involves pre-screening through your rental application. You can customize it to meet your needs. Be sure you ask questions to give you an idea of the person’s income and ability to respect the home. However, don’t include anything that could cause unconscious bias.

2. Run Background and Credit Checks

After you have some applications, background and credit checks need to be run. You can’t always trust what someone says in an application so double-check for your peace of mind. Be sure to abide by the Fair Credit Reporting Act to avoid legal trouble.

Corporate Housing by Owner is partnered with Transuion Smartmove to facillitate background and credit checks. Learn more about using their services. Visit - https://chbo.mysmartmove.com/

3. Verify Employment and Income

Almost 75% of people lie about money in some way, so don’t trust what someone tells you. Instead, research to find out what is the truth. Ask for current employer references to get information. You can also check LinkedIn to see if they have genuine connections. This is important for getting the right tenants in your short-term rentals.

4. Remain Compliant and be Fair

When you choose tenants, you need to pay attention to the fair housing act and nondiscrimination rules. The Fair Housing Act of 1968 outlawed discrimination in the financing, rental, and sale of housing, which uses to be very unfair and racist. You also want to be aware of laws for your state and county. A real estate lawyer can help if you aren’t sure.

5. Choose a Tenant

At this point, you’ve done your screening and know whether a tenant meets your requirements. Consider whether the person’s income is three times the rent, whether they have a high credit score, and if they have had any criminal charges in the past. This can help you narrow down your options.

At CHBO, you can review tenant applications with ease. You’ll have a single space where you can view income verification, eviction history, background checks, credit checks, and other renter information. The best part is that you don’t need to pay for the process. Instead, applicants pay a small fee and the information is sent directly to you.