Secrets to Screening Tenants Like a Pro
Lately, I've been getting heaps of questions about tenant qualifications, and I figured it's high time I laid it all out for you.
This week, I’m sharing the essential qualifications we use to screen tenants. Whether you’re taking this on yourself or just want to know what to expect from your property manager, this will serve as a handy reference. Just remember, these standards are what we practice in Houston, and they might change—adaptability is key in our field. As of August 2024, these are the main criteria we follow to maintain an eviction rate of less than 1%.
You can always check out emersonpropertymanagement.com/qualifications for the most up-to-date info. We assess our screening criteria regularly, and today, I’ll give you a detailed summary of our approach.
Key Qualifications
Income Requirement: First and foremost, we require tenants to earn at least three times their monthly rent. So, for a $3,000 monthly rent, applicants need a collective income of $9,000. We learned the hard way after setting it too low once—it was a mess!
Rental History: We demand three years of rental history. What if someone’s recently sold their house? Simply provide documentation like a closing statement, or the deed. We aim to contact previous landlords, especially the one before last, as they have no reason to mislead us.
No Recent Evictions or Broken Leases: Our policy now is no evictions or broken leases within the past seven years. People change, and we want to accommodate growth and learning.
No Violent Crimes: We don’t accept tenants with violent crimes within the past ten years to ensure safety for neighbors and peace of mind for everyone.
Pet Screening: We verify pet details, ensuring any emotional support animals, like a pit bull or even a peacock, are legitimate.
Credit Risk Fee: While we don't require a minimum credit score, a lower score means a higher credit risk fee. The data doesn’t show higher evictions with lower credit scores, so we’ve adjusted accordingly.
Final Thoughts
These guidelines are not revolutionary but they work, much like the fundamentals of any skill. Each year, we reassess and let our findings guide us. You can use this information as a springboard, adapting it to suit your situation. Remember to be dynamic—react to any issues by making necessary adjustments.
Stay tuned for my next video where I’ll explain our application process. Meanwhile, adapt and personalize these insights to enhance your tenant screening process. Thanks for tuning in!
