Is Your Property in the Right Tenants' Hands?

So you have finally obtained a property of your own, and desire to lease/rent it out! Well, do not rely on mere feelings (they can be colored by positive/negative personal experiences) or sheer instinct (it can go wrong at times). Jot down certain criteria that would aid in checking out your would-be-tenant's credentials. We can offer you a few handy suggestions though--

(1)
Ensure a thorough acquaintance with fair housing laws; it would not do if your tenant has better knowledge of them than you! Every state has a fair housing office; so you will get plenty of help there. Your tenant better be made aware (via the application form) that you have every intention of being a "fair owner"! For instance-"Our policy is to rent our units in compliance with federal, state and local fair housing laws". Clauses about taking good care of your property and not causing any destruction can also be included.

(2)
Identification that can be confirmed is a must, considering that criminal offenses are on the rise today. A photograph of the occupants can always be verified, for instance. It is advisable to keep copies of both, the application and the photograph with you. Should you encounter legal issues later on, or investigating officials wish to have some information about your tenants, the application and the photograph come in handy.

(3)
How many people are affixing their signatures on the application form? If more than one, do get verifiable identification details from the co-applicant(s) too.

(4)
References that can be cross-checked are essential! The people who refer your tenants should supply their own addresses and telephone numbers too. Should you ever need to verify your tenants' characters or sources of income, they come in handy.

(5)
If he/she has rented other dwellings in the past, your tenant's dependability concerning prompt payment of rent can be easily checked out. In rare cases, a tenant may meet all other criteria but genuinely cannot pay the rent on time. Well, you can afford to be a little lenient in such cases. Only, for your own good, get a witness to sign on the application too.

(6)
Experienced people advocate that a tenant earning three times more than the rent demanded should be the one to occupy your property. Now, how do you check that out? Well, get the most recent pay stubs of the job-holder, and the latest tax return plus the latest quarterly bank statement from a self-employed entrepreneur. Money lenders and finance companies deal with this sensitive issue quite effectively; so, why not you? Just consider this--if your tenant cannot produce proof of a legitimate source of income, you have a sound reason to refuse tenancy of your property.

(7)
Are you a rather overcautious owner? Then you could inquire about credit ratings and scores (related to primary occupants, as well as co-applicants). But mind, this is an extremely personal matter and if not handled diplomatically, you could be treading on sensitive toes! Plus, this criterion is optional. Only if you have the slightest inkling that this person does not give the appearance of being financially sound, then refuse to hand over your property!