Your goal in screening tenants is to find tenants who will:

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1. Reliably pay the rent   

2. Take care of your property   

3. Get along well with you and neighbors   

4. Not break your rules or any laws

 

A clean, well-maintained property which is attractive inside and out will get you better, easier-to-work with tenants.  If you do your part in preparing your apartment well, advertise well and screen applicants, you will have a great shot at consistently getting good tenants.  In preparing your property, ask yourself the following:

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1. Is the apartment upgraded appropriately? 

   • In a strong rental market (currently in Utah) the apartment doesn’t have to be perfect but good maintenance and appropriate upgrades are always important.

   • If starting with an older apartment, one good strategy is to upgrade one element of your rental every time you re-rent.  That way you won’t spend beyond your means, but your home’s apartment will continually get better.

2. Is the apartment impeccably clean?  Cleanliness sells and attracts the kind of tenants you want. 

3. Is the exterior and grounds of your home in tip-top shape?  Watering, fertilizing and maintaining the lawn and landscaping are one of the cheapest and easiest things you can do to attract better tenants.

4. Is the property thoroughly maintained inside and out such as appliances, hardware, paint, etc.

Tips on Being a Professional, Firm but Fair Landlord  

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1. Get all funds before the tenant moves in. If you don’t get the full deposit before tenants move in, it will likely be a struggle to get it later. It is a bad sign if applicants do not have the basic required move in funds available. Encourage them to borrow from friends or family, if needed. Also, always get move-in funds in guaranteed form, never a personal check.

2. Enforce the lease standards. This will usually benefit both you and your tenant. For instance, charging late-rent fees consistently when owed will help your tenants prioritize paying rent over other needs or wants. If you fail to charge late fees owed, tenants are much more likely to fall further behind in rent and get in trouble. Stay on top of other tenant responsibilities which are in your lease.

3. Develop and stick with qualification standards when deciding who you will rent to.  See “How to develop minimum screening standards.” If your apartment is renting slowly, reevaluate rent price and property condition.  Perhaps lower your standards slightly but never take “just anyone” or rent on gut instinct alone. 

4. Have financial reserves. There will be unexpected expenses and times when your apartment is vacant. Having reserves will give you confidence and peace of mind when unexpected expenses come up.

5. Properly maintain your apartment. Your renters deserve prompt, good service. Know your abilities. You will be able to do some things yourself but know when to appropriate handymen and contractors to help efficiently attend to repairs that you can’t perform yourself.  Hire good handymen to help with maintenance. 

6. Gather and use applications, leases and other forms you’ll need before you need them.  BiggerPockets.com has state specific forms.  See: www.biggerpockets.com/property-management-tools#lease-agreements. You could also contact a tenants/landlord attorney for forms or join the Utah Apartment Association which provides forms for its members

7. Carefully consider the rules and procedures that you’ll put in your lease.  Examples: guests policies, subletting policy, pets, vehicles allowed, parking, quiet time, how rent will be paid, owner Inspection policies, etc. It is much more difficult to change the rules later if you do not include what you want up front in your lease. 

8. Use move in/move out property inspection checklists.  Fill out (or better yet, have your new tenants fill out and sign) checklists indicating that the apartment is in good condition when your tenants move in.  Also, document the condition with pictures.  When your tenants move out repeat the process and charge reasonable amounts for damages beyond normal wear and tear.  

9. Inspect your property occasionally.  You need to see what is going on, whether it is any maintenance items that need to be fixed or checking on tenants who you suspect of breaking rules.  Make sure to include occasional inspections in your lease

10. More tips on landlording: www.turbotenant.com/blog/95-landlord-tips-the-ultimate-landlord-guide/.

Forms you will need as a landlord:

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1. Rental Application (may be paper or online)

2. Lease Agreement

3. Move In/Move out Checklist

4. Disposition of security deposit form

5. Etc. You may choose to use more

 

It has been said that the lightest ink is better than the best memory.  Using well-written forms will help keep things between you and your tenants clear and help keep everyone honest.  A solid application and lease will help you select better tenants and clarify how you want your tenant to treat you. 

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Landlord/Tenant Lawyers often provide leases for free.  BiggerPockets.com is also a good source for Utah specific leases and other forms.  Bigger Pockets charges $100 for a package of forms you’ll need

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See: https://www.biggerpockets.com/property-management-tools#lease-agreements

How to develop solid minimum screening standards

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It is a good idea to develop minimum rental standards. Setting up minimum standards for applicants you’ll approve helps protect you in a weak moment. You can also reference rental standards when pressed (especially by friend, relatives or neighbors) to rent to unqualified tenants.

 

Sample Minimum Standards:

• Previous landlord references = Good (And you must be able to contact them)

• Criminal history = Acceptable to us as we will be your neighbors

• No Smokers or Pets

• Must have move-in funds available (1st month’s rent plus security deposit)

• Minimum FICO credit score (or equivalent) = 600

• Minimum combined household monthly gross income = 3 times rent.Income must be verifiable through pay stubs, employer contact, tax records, or a combination of these

• Rental Application basics = Completely filled out + No misrepresentations + Proper government issued identification provided

 

You may of course include other standards of your choice.   

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Always Screen Carefully.  Leigh Robinson in the fantastic book “Landlording” said the following:

“Dishonest applicants are betting that you won’t check their applications, that you’re so charmed by their broad smiles and winning ways when you first meet them that you will rent to them without bothering to check them out.They’re betting that you’re a trusting simpleton that you will take them at face value and rent to them simply because they seem like such nice people.Trust me.You cannot afford to take that bet.It’s too risky.”

 

You should screen (and get a separate application from) all adults that will occupy your apartment (both spouses of a married couple or dating couple, adult children, etc.)

Questions to ask applicants before you show the apartment

Pre-screening questions

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Questions to ask a prospective renter before you show the property:

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1. When they are ready to move in

2. Whether they have enough money to move in

3. Whether they have good credit or not

4. Whether they have been evicted or asked to move out

5. Whether the number of people who intend to live there falls within your limits

6. Whether they smoke

7. Whether they have pets and what type if you allow certain types or breeds

Questions to Ask Current/Former Landlords:

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1. What can you tell me about the tenant?

2. Did the tenant pay on time?

3. Did they pay the full amount?

4. Did the tenant abide by the rules of the lease including any move-out rules?

5. Did the tenant take care of your home and yard?

6. Were there any complaints made against the tenant? 

7. How much work did you have to do to get it ready for the next tenant?

8. Did the tenant have a pet?

9. Did they Smoke?

10. Were there any red flags?

11. Would you lease to the tenant again?

Questions to Ask Personal References (Friends/Family/Associates)

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1. How do you know the tenant?

2. How long have you known the tenant?

3. How do you describe the tenant’s current or previous home or apartment?

4. Does the tenant have pets or smoke?

5. What is the tenant’s overall character?

Questions to Ask Employment References

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1. Does the tenant work at your company?

2. Are you the tenant’s previous employer? 

3. What is the tenant’s salary?

4. When was the tenant hired? 

5. What are the tenant’s job title and job description? 

6. What are the terms of the tenant’s employment?

7. How is the tenant’s job performance? 

8. Can you provide some specific examples of why you like working with the tenant? 

9. Has the tenant ever had issues at work or been reprimanded?

 

Screening questions source: Nomadic Real Estate, Washington D.C. See https://www.nomadicrealestate.com/questions-for-personal-references/ for full article