If you’re a first-time landlord, it can be difficult to know how to create a rental application form that will allow you to properly screen potential tenants. Most properties receive a number of applications, so how do you spot the best one? As a landlord, it’s crucial to create a detailed rental application form in order to ensure that you will find a tenant who can pay rent on time, maintain the property, and follow the rules on the lease. With that in mind, here’s how to cover all your bases with a detailed rental application form.
Application fees
If you’re only looking for serious inquiries, rental application fees are a must. An applicant who is willing to pay an application fee is likely reliable and willing to move forward when their application is approved. Standard application fees are typically around $20, exclusive of screening report fees.
By law, landlords cannot profit from application fees. Any profits received from application fees must be used toward actual costs incurred in leasing the rental. These fees include a tenant background check and other related fees. Application fees are often non-refundable, even so this fact should be explicitly stated in your listing.
Background checks
Along with application fees, landlords usually charge for a screening report. Running credit, criminal, and eviction reports, as well as verifying previous residences and employment is non-negotiable if you’re looking to find a reliable tenant.
While different landlords use different types of software to run their screening reports, it’s important for you to use the software that best matches your needs depending on how you plan to process applications. Software that offers free screening reports will help you maximize the number of applications you receive.
Credit checks
Credit reports will allow you to determine any potential risks involved in signing a rental agreement. A higher credit score indicates that the applicant is reliable and will likely make timely rent payments. Meanwhile, a lower credit score may be a sign of late payments or a lack of credit history. It’s not uncommon for landlords to set a minimum credit score and monthly income for applications to ensure timely payments. For applicants without a solid credit history, you can recommend that they find a co-signer.
References
Ask for contact information of at least three references. References are most often previous landlords, but first-time renters often list employers or family. It’s essential to contact each reference and ask questions regarding the potential tenants’ credibility and character.
For previous landlords, make sure to ask questions regarding late payments and property damage. If the tenants received their security deposit in full when moving out, this typically indicates that they didn’t cause any property damage. If the landlord would rent out the property to those tenants again, they’re likely worth approving.
Reviewing applications
When it’s time to start reviewing applications, you should look at each application thoroughly. An ideal tenant never forgets to include the essentials, like their full name, correct current address, phone number, driver’s license number, references, and occupation details. If you feel like the tenant is trying to hide something, they’re probably not going to be a good, trustworthy tenant.
All in all, covering all your bases with a detailed rental application will go a long way in helping you determine which applicants to approve. Using a detailed application to screen the background, credit, and references of applicants will be an important deciding factor in whether or not you should approve their application. You should feel confident that any tenants you approve are reliable, credible, and trustworthy.
