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Best Practices for Landlords When Choosing From Multiple Rental Applications
As a landlord, receiving multiple rental applications can be both exciting and challenging. On one hand, it’s a sign that your property is in demand. On the other hand, it can be difficult to decide which applicant is the best fit for your rental. Making the right choice is essential, not just for your peace of mind, but also to ensure a smooth, profitable relationship with your tenants.
In this blog post, we’ll explore the best practices landlords should follow when faced with multiple rental applications.
1. Create a Clear Set of Criteria
Before you even begin reviewing applications, it’s important to have a set of consistent criteria to evaluate applicants. This ensures that your decision-making process is fair and transparent. Some common factors to consider include:
Credit Score: A higher credit score generally indicates that the applicant is financially responsible.
Income: Ensure that the applicant has a stable income and can afford the rent. A common rule of thumb is that rent should not exceed 30% of an applicant’s monthly income.
Employment History: A steady job history can provide a good indication of long-term financial stability.
Rental History: Past landlords can provide valuable insight into an applicant’s behavior as a tenant, including whether they paid rent on time and maintained the property.
Criminal Background: Conducting a background check to ensure there are no major legal issues can help protect your property and other tenants.
By setting clear criteria, you create a structured framework to evaluate each application impartially, reducing the chances of unconscious bias affecting your decision.
2. Review Applications Thoroughly
Once you have your criteria in place, take the time to thoroughly review each application. Don’t rush the process! Here’s a checklist for reviewing rental applications:
Verify Information: Cross-check the information provided in the application against supporting documentation. For example, ensure that the income stated matches the pay stubs or tax returns provided.
Check References: Call past landlords and employers to verify the applicant’s rental history and employment status. If an applicant has been consistently late with rent payments or left previous rentals in poor condition, it’s a red flag.
Look for Red Flags: If you notice anything unusual, such as frequent job changes or unexplained gaps in rental history, make sure to address them during an interview or follow-up.
Reviewing applications carefully will help you make a more informed decision and avoid overlooking important details that could affect the tenancy.
3. Meet with Applicants
Once you’ve narrowed down the list of applicants, consider meeting with them in person or through a virtual meeting. This step is important for several reasons:
Assess Communication Skills: Meeting in person allows you to assess the applicant’s ability to communicate clearly and professionally.
Gauge Personality Fit: Your relationship with tenants can last for years, so it’s important to make sure that their personality aligns with your expectations. A good rapport can make for a more pleasant landlord-tenant relationship.
Clarify Expectations: This is also an opportunity to clarify your expectations regarding rent payment, property maintenance, and any house rules.
Face-to-face interactions provide a better sense of who your tenants will be and whether they’ll be respectful of your property.
4. Make Sure to Follow Fair Housing Laws
It’s crucial to comply with federal, state, and local fair housing laws when selecting tenants. Discriminating based on race, color, religion, sex, national origin, disability, or familial status is illegal under the Fair Housing Act. Ensure that your criteria are objective and non-discriminatory, focusing on the applicant’s ability to pay rent, maintain the property, and follow the lease agreement.
To avoid potential legal issues, document your decision-making process thoroughly. This will protect you if a tenant claims that you violated fair housing laws.
5. Use a Standard Lease Agreement
Once you’ve selected a tenant, make sure to use a standard lease agreement that clearly outlines the terms of the rental. This should include the rent amount, payment due dates, lease duration, security deposit information, maintenance responsibilities, and any other rules you wish to enforce.
Having a clear lease agreement will help avoid misunderstandings and set expectations for both parties from the start.
6. Trust Your Instincts
While data and documentation are crucial in choosing a tenant, don’t underestimate the power of your gut feeling. If something doesn’t feel right or if an applicant’s attitude raises concerns, trust your instincts and continue the search. Your intuition can be a valuable tool in finding the right tenant who will respect your property and your time.
7. Keep Detailed Records
It's important to keep thorough records of your selection process, including the applications you received, the criteria you used to evaluate them, and your reasons for choosing or rejecting each applicant. Not only does this protect you legally, but it also provides a reference for future rental decisions.
Conclusion
Choosing the right tenant is one of the most important decisions you’ll make as a landlord. By creating clear criteria, reviewing applications thoroughly, meeting with applicants, following fair housing laws, and trusting your instincts, you can make a well-informed decision that sets you up for a successful and harmonious rental experience.
Remember that finding a responsible tenant who will pay rent on time, take care of the property, and be respectful of your rules is an investment in your peace of mind and the long-term profitability of your property. By following these best practices, you’re not just choosing a tenant—you’re choosing a partner in maintaining a thriving rental business.
