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Evaluating Rental Applications

By
Real Estate Broker/Owner with The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY REB.755648

For RentOkay, so you hired a real estate agent to find a renter for your property. But how do you know that the renter they will bring you is any better than your last problem tenant?

Unfortunately, there is no crystal ball...

But your professional real estate agent will greatly increase the odds that you won't have a bad experience. The process of requiring a potential tenant to be pre-qualified before they look at your rental property will weed out quite a few of the people who would otherwise waste a lot of your time.

Before you start marketing your rental unit, you need to have a good discussion with your real estate agent about the parameters you find acceptable for tenants:  Minimum acceptable credit score? Minimum monthly income of renter? Are pets allowed? (If so, what kind? how many?) Employment stability? Maximum number of occupants? Smokers? Will you require a Criminal Background or eviction check?

So what should your real estate agent be checking when a potential tenant says they want to rent your unit?

1.  They should have a written application filled out. Our office uses the Greater Hartford Association of Realtors form for all our rental applications.

2.  They should require a credit check be completed, and proof of sufficient (legal source of) income--at least 3x monthly rental amount is a safe minimum. You should discuss with your real estate agent ahead of time what minimum credit score you will accept, and any other credit issues that would disqualify the person from renting your unit.

3.  Someone should CALL the previous TWO landlord references provided. Discuss with your agent who will complete this task. Ask about the payment history and the condition of the property when the person vacated it.

4.  Security deposit, first and last month's rent should be paid by money order.

 

Remember, after all is said and done, the final decision on accepting a rental application still lies with the you, the property owner.  Having specific qualifying guidelines for evaluating rental applicants increases the probability of having a responsible tenant who will make their payments and take care of the property.

If you want professional real estate assistance in finding a tenant for your house or apartment, please give me a call.

 

 

 

 

Posted by

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Serving the North Central Connecticut region, Hartford County, and the communities of Windsor, Bloomfield, Hartford, East Hartford, South Windsor, Manchester, Windsor Locks, Suffield, Enfield, East Windsor, Somers and the Granbys...

Opening Doors to Home Ownership . . . The Master's Key . . .

Residential Sales, Short Sales and Foreclosure Prevention, Multi-Family and Investment Properties, Condominium and Property Management

Lisa Orme on LINKED INRealtor logoThe Master's Key Realty fan page           LISA ORME        Lisa Orme on TWITTEREqual HousingRSS

 

Licensed in the State of Connecticut, ABR, CRS, GRI, PSCS, SFR, Notary Public, Lic. #REB.755648

 Broker/Owner of The Master's Key Realty LLC, 340 Broad Street, #320, Windsor, Connecticut 06095

To contact Lisa, call 860-688-1400 or send an e-mail to lisa@masterskeyrealty.com

Copyright, Lisa Orme, 2010.  All rights reserved.

Jennifer Chiongbian
Specializing in all types of Manhattan apts & townhouses - Manhattan, NY
Real Estate Broker - NYC

We here in Manhattan ask for a letter of employment, last 2 most recent bank statements, landlord referrence letter (if currently renting), last 2 most recent paystubs, the application to pull credit that even checks terrorist watch list as well as houseing court, and a clear copy of their ID.  They also have to be making 40x the rent to income ratio, or we ask for a guarantor who makes 80x.  In certain situations we ask for the tax returns as well.  We are the most stringent rental market I know of, in the world!

Aug 18, 2011 12:31 PM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®
Wishing you lots of qualifying renters and fabulous rental properties to rent them! Blessings!
Aug 18, 2011 01:45 PM
Melissa McKinney
Everything Pines Partners Fayetteville - Fayetteville, NC
Realtor, www.LivingFayetteville.com

Lisa~ Great information on how to up the chances of getting a great renter! 

Aug 18, 2011 03:22 PM
1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

A great piece of information for anyone wanting to rent homes out! 

Aug 20, 2011 04:08 PM
Mike McCann Nebraska Land Broker
Mike McCann - Broker, Mach1 Realty Farm & Commercial Land Broker-Auctioneer Serving Nebraska - Kearney, NE
Farm & Commercial Property For Sale 308-627-3700

It is harder to do in a metro setting...but many times in my small town of 30,000 I have said to prospective tenants that I will come to their home to fill out the application...clears out the looky loos and poor housekeepers in a hurry.

Aug 23, 2011 04:09 PM
Lisa Orme
The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY - Windsor, CT
Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu

Thanks for all your supportive comments! 

Mike-I love the idea of doing the application at their present home--or at least giving it to them ahead of time and stopping by to pick it up. Gives you a real good idea of what you might be dealing with if you have them as your new tenant...

Aug 24, 2011 05:34 AM
Chris Graff
RentMethod - San Francisco, CA

Great post and helpful responses!  Definitely all good steps to weed out the dead beats.  Lisa, keep up the great posts!  I've been a reader for some time.  In addition to your comments, a quick way to screen potential tenants is by using RentMethod (www.rentmethod.com).  You can make the tenant pay directly for the tenant screen and the broker / landlord gets credit score, background check, eviction notices, criminal check, and even a rental recommendation.  It's a pretty slick service that we designed for our landlord friends.  

Happy Thanksgiving everyone!

Nov 23, 2011 02:44 PM