One question that often comes up from rental property owners is: how do you select tenants for my property? Today, we are answering that question and explaining what you need to do to find the right tenant for your investment home.
Tenant Background Check
Tenants are required to jump through a couple of different hoops before they’re approved to live in one of our properties. We do a complete background check, which includes a tenant credit check. We look at the credit report, and we want to see scores that are in the range of 600 or above. We will not accept anyone who has landlord or utility debt on their credit reports, or mortgage debt. Those things must be current.
On criminal reports, we don’t want to see any felonies or assault charges. Battery and violent crimes are also a reason not to accept a tenant. Finally, we look at rental references. We talk to the last two property managers or landlords. We ask if the tenant paid on time, had any lease violations, and left the home in good condition. If the tenant has pets, we also do a thorough pet background check.
Property Management Jacksonville
Sometimes tenants have some negative things on their credit reports, but are willing to pay rent in advance. That’s a problem, and we don’t recommend you accept it. We are always planning for the worst case scenario, so we have to think about what would happen if the tenant has lease violations two months into residency. Maybe they start parking in the grass and we need to evict. Or, a hurricane could come through and make the home inhabitable. In that case, we’d have to pay the tenant back all the rent that was prepaid. And, there are rules and regulations about collecting interest on advance rent. So, we never recommend that.
Studies have also shown that tenants paying too much in advance are more likely to engage in criminal activity. They are paying you not to bother them or come into the home. We suggest not doing it.