| It is your house. Maybe it was the family home | | | | First, go to the local courthouse and search the |
| that you inherited, and now you are renting it out. | | | | eviction records to see if they have ever been |
| Maybe you purchased it as an investment and | | | | evicted. If they have been evicted, you need to |
| plan for it to be a big part of the retirement fund. | | | | evaluate why. While you are there, check court |
| And now, you want to rent it out to some people | | | | records for criminal convictions. Then go to the |
| who you think are really nice. They told you a | | | | tax office and pull property records on all |
| story about what hardships they have gone | | | | addresses listed on the app. Make sure that the |
| through and you, being a nice person, want to | | | | owner listed on the app is indeed the current (or |
| help them out. | | | | previous) owner of the property. Commonly, you |
| Well, maybe they told you the truth. Maybe. But | | | | can do all of this online. One of the most common |
| then, maybe they are people who will tear up | | | | scams is to list a friend as a landlord. If you have |
| your lovely house, cost you thousands of dollars | | | | cause to suspect this might have happened, then |
| in damage, damage your reputation, and perhaps | | | | check the records to see if the friend has ever |
| even drive you into bankruptcy. | | | | been evicted or arrested. You will wind up |
| Protect yourself. ALWAYS, ALWAYS, ALWAYS | | | | knowing a lot. |
| screen your tenants. And NEVER EVER violate | | | | Second, go to the police station, and pull arrest |
| tenant screening rules numbers 1 through 10! | | | | records on them. This will usually be enlightening; |
| Rule number 1: Screen your tenants. | | | | many arrests never make it to court. So by |
| Rule number 2: Screen your tenants carefully. | | | | looking at these records, you will learn if your |
| Rule Number 3: Screen your tenants thoroughly. | | | | applicant is troublesome. |
| Rule Number 4: Screen your tenants even if you | | | | Then, go to the credit bureau and pull their credit |
| think they are OK. | | | | report. You can use this to determine whether |
| Rule Number 5: Screen your tenants always. | | | | they are a deadbeat or not. Bad credit is |
| Rule Number 6: Screen your tenants without fail. | | | | common among tenants; learn to decide WHICH |
| Rule Number 7: Screen your tenants under all | | | | KINDS of bad credit raise red flags. For instance, I |
| circumstances. | | | | tend to ignore medical collections; it is expensive |
| Rule Number 8: Screen your tenants especially if | | | | and if you are ill, you have to have the service. I |
| they wave money under your nose. | | | | do not consider non-payment of medical bills to |
| Rule Number 9: Screen your tenants even if they | | | | necessarily indicate moral turpitude. However, bad |
| seem clean and well educated. | | | | checks to grocery stores is a major red flag, and |
| Rule Number 10: Never ever ever violate rules 1 | | | | I routinely reject those who get jewelry store |
| through 9. | | | | credit cards, run 'em up, then default. In my book, |
| Because it does no good to tell you to screen, | | | | that is no different than theft. |
| without telling you HOW to screen, here is how | | | | Now, get on the phone. Call the present and |
| you screen a tenant. | | | | previous landlords. Get references. Ask set |
| First, make them fill out an application that asks | | | | questions; "Did they live there? did they pay on |
| for, at a minimum, the following: | | | | time? did you ever give them an eviction notice? |
| (1) Full Name; | | | | did they cause damage? would you rent to them |
| (2) Social Security Number; | | | | again?" Never forget the "would you rent to them |
| (3) Current Address; | | | | again?" - often, your other questions do not pick |
| (4) Time at current address; | | | | up something and that last one is your clue. |
| (5) Current Landlord's name and phone number; | | | | Call the employer. Do they really work there? Is |
| (6) Employer; | | | | the employer really an employer? Pay particular |
| (7) Employer's phone number; | | | | attention if the phone is answered "hello". Business |
| (8) Their income; | | | | phones are usually answered with a business |
| (9) ALL - that means EVERY - address they | | | | greeting; "Doc's morgue - you stab 'em, we slab |
| have lived at for AT LEAST the last 3 years, | | | | 'em". The "hello" answer could be your tip off that |
| with landlord names and numbers, and dates they | | | | the "employer" is not really an employer. |
| lived there; | | | | If anything makes you in the least bit suspicious, |
| (10) Names of EVERYONE to occupy the rental | | | | criss-cross phone numbers. You can do this online |
| The application must also have on it a release | | | | at many websites. |
| permitting you to do a complete background | | | | When you are done with all this, you will know |
| check on the applicants, and all applicants age 18 | | | | who you are dealing with. It won't guarantee you |
| and over must sign the application. | | | | that you will avoid a bad experience, but if you do |
| Then, check the DRIVERS LICENSE or STATE ID | | | | not do it you are certain to have some |
| of every applicant age 18 or over - NO | | | | extremely bad experiences, and by doing this you |
| EXCEPTIONS, NO EXCUSES. When you look at | | | | will certainly filter out 99.9% of the bad guys. |
| the ID, make sure that the picture matches the | | | | A good screening service will do all of these things |
| person who gave it to you. Then verify that the | | | | for you. If you are not set up to do it routinely, |
| name on the ID is the same (including middle initial) | | | | you will find it to be a terrible nuisance and will be |
| as the name on the application. For women, this | | | | inclined to take shortcuts. Shortcuts will cost you |
| often involves careful questioning. MAKE SURE | | | | many thousands of dollars in evictions, lost rent, |
| you have all the last names for the person that | | | | and repairs. So never take shortcuts. |
| you can obtain. The address on the drivers license | | | | The screening service that we use maintains |
| MUST BE one of the addresses listed on the | | | | eviction, arrest, and property ownership records |
| application. If the Social Security number is on the | | | | on site. They also keep complete records of |
| ID, match it against the one on the app. Finally, | | | | everyone they have ever screened - so the |
| compare the signature on the ID to the signature | | | | second and third and fifteenth times they screen |
| on the application. | | | | them they can see what was said the earlier |
| Charge the applicants a reasonable fee (typically | | | | times. They keep records on landlords as well, so |
| $30 or $35) per name (nonrefundable) for an | | | | they know who they all are (as best they can |
| application fee. This is not unreasonable; a | | | | know - they know of several thousand of them |
| screening service will charge you at least that | | | | in the area). So when you go to these guys, they |
| much, and if you do it yourself, you will put some | | | | have the data to quickly tell you what you need |
| time into it. Also, this is your first line of defense; | | | | to know about the person, and all the previous |
| if the applicant has a bad history, they usually | | | | landlords, and so forth. |
| won't pay the fee since they know they will lose | | | | Any good local screening service will have this kind |
| the money and won't get the place. If they are | | | | of data - and some of it is only data that you get |
| bad guys, you do not want them anyway. | | | | by running a screening service. This is the |
| Then, you should turn it over to a good tenant | | | | argument in favor of using a service rather than |
| screening service for evaluation. Make sure they | | | | doing it yourself. |
| are thorough. If you wish to screen the applicants | | | | But ultimately it does not matter, just so long as |
| yourself, here is what you do. | | | | you do it. |