Let’s talk about tenant screening and how agonizing the selection process can be. Choosing the right tenant is essential to a pleasant and profitable rental experience. With a well-qualified resident in place, owners can expect to collect rent on time and communicate easily with their tenants. They can expect their property will be well-maintained and the lease terms will be respected. When the wrong tenant is placed, there can be property damage and lease violations. Expect late rent and maybe missing rent. Landlords may find themselves having to suffer through an eviction process.

Finding and placing reliable tenants is one of the best reasons to partner with a property manager.

We embrace the best practices in tenant screening, which ensure steady rental income and a property value that’s always increasing. Proper tenant screening can minimize the risks associated with renting, and it’s always important to follow and comply with fair housing laws. This is why it’s so important to have experienced professionals choosing tenants. While independent landlords may make decisions based on instinct or their own preferences, property managers keep the process objective and data-driven.

Here’s what we do at Wess Cason Realty when we’re screening tenants. Our eviction rate is extremely low and our retention rate is pretty high. You can trust our process for choosing the most qualified and reliable renters.

Establishing Qualifying Rental Criteria

Before we start the screening process, property managers will establish clear rental criteria. It’s something that everyone should do because it saves you and your prospective applicants time and resources. They don’t want to spend an application fee on a property that they’re likely not going to be approved for. You don’t want to waste time screening unqualified tenants. Establish criteria and provide that to every applicant. It must be consistent for all applicants to ensure a fair and legal screening process. Consider factors like:

Minimum income requirements

Employment history

Acceptable credit score range

Rental history (e.g., no previous evictions)
Maximum occupancy limits

By defining these criteria upfront, we can streamline the screening process and minimize the potential for discrimination claims. Our process reflects a tenant screening system that’s consistent and objective.

Checking Credit for Any Red Flags

Our comprehensive credit check provides insight into an applicant’s financial responsibility. We don’t have to see perfect credit, but we do expect to see responsible credit. We’ll look for and avoid tenants with red flags, such as:

A history of late or missed payments

High levels of debt
Recent bankruptcies or foreclosures
Late payments on housing-related bills such as utilities

While a lower credit score doesn’t automatically disqualify a tenant, it should prompt further investigation into their financial situation. Open communication with the tenant about their credit history can provide additional context, and this is another area in which property managers are especially skilled.

Verifying Income During the Screening Process

To ensure that a tenant can afford the rent, verify their income. The application will ask what they earn, but we will always want some proof. We ask for documentation such as:

Recent pay stubs or tax returns

Bank statements
Employment verification letters

Typically, a tenant should earn at least three times the monthly rent. However, this can vary depending on the local rental market and the applicant’s overall financial profile. Because rents have risen so dramatically over the last few years, many tenants are struggling to meet the threshold of three times the rental amount. We generally look for tenants who can meet that requirement.

Conducting Rental References

Our application asks for contact information for current and previous landlords to gather information about the tenant’s rental history. While this takes a little extra time in the screening process, we find it valuable to ask questions like:

Did the tenant pay rent on time?

Did they take good care of the property?
Were there any complaints or issues during their tenancy?
Did they provide enough notice before moving out?
Would you rent to this tenant again?

We ask about pets and communication. Rental references can provide valuable insights into a tenant’s behavior and reliability.

Ensuring Move-in Dates and Lease Expectations are a Match

It’s important, during the screening and even the showing process, to align move-in dates and lease terms with the applicant’s expectations to avoid misunderstandings later. We confirm details like:

Move-in date. Does the tenant’s desired date of moving coincide with the date that the property will be available?
Lease start and end dates and how the lease renews at the end of the initial lease term.

Rent amount and due date as well as late fees and all the details of our rent collection process.

Security deposit requirements.
Policies regarding pets, smoking, and subletting.

Clear communication about these expectations upfront can prevent disputes and ensure a smooth move-in process.

Complying with Fair Housing Laws

Property managers will understand the laws and requirements around screening. We always comply with federal, state, and local fair housing laws when screening tenants. These laws prohibit discrimination based on protected characteristics like race, religion, gender, and family status. Our screening criteria are applied consistently to all applicants, and we document the process to protect you from potential legal claims.

Finalizing the Tenant Selection Process

Property managers have the technology that ensures tenant screening is objective and fair. We look at criminal and eviction histories, verify income, and check credit. Once these steps are completed, it’s important to consolidate the gathered information to make an informed decision.

We’re going to review all application materials and analyze the data that’s been provided.

After selecting the most qualified candidate, expect your property manager to promptly communicate the decision and prepare the lease agreement. We clearly outline the terms that were discussed, and ensure the tenant understands all aspects of the lease before signing.

Taking the time to finalize the tenant selection carefully can lead to a successful long-term rental relationship.

Let’s talk about how we might be able to find the right tenant for your rental property. Please contact us at Wess Cason Realty. We provide real estate and property management services in Charlotte and the surrounding areas in Mecklenburg, Union, and Cabarrus County.