The process of tenant screening in Denver, CO should be designed to help you find a qualified tenant who will pay your rent on time and take good care of your investment. You need a consistent procedure in place as well as a set of criteria that is applied to every applicant.
Completing an Application
All potential tenants will need to complete an application that includes identifying information, recent addresses, employment and landlord references, and information about pets and additional applicants. Your application should ask for names, social security numbers, and dates of birth so you can run proper credit and background checks. You need to require any adult 18 years of age or older to fill out an application, even if they are in school.
Credit and Screening Reports
Ask for documentation to support the application such as pay stubs to verify income and a copy of the applicant’s driver’s license and social security card to verify identity. It’s a good idea to use a professional screening company that can run credit and criminal reports to provide your screening information. You should review the full credit report as well as the credit score. Your criminal background check should include the terrorism watch list and the sexual offender list. The screening company will conduct a national eviction check so you’ll know if an eviction has ever been brought against your prospective tenant.
Analyzing Screening Reports
The Federal Fair Credit Reporting Act requires you to protect the personal and financial information that is gathered on your applicants. Make sure you keep it all in a secure place so no one can steal the information. When you compare the information in the reports to the information on the application, look for discrepancies. If you’re confused about anything, talk to the applicant. Pay special attention to income, and make sure the tenant earns enough to cover the rental amount.
It doesn’t cost a lot to use a professional screening company. You can get a full application screened for less than $50, in most cases. You can collect an application fee from the prospective tenant, so your costs are quite minimal.
If you have any questions about the process of screening a tenant in Denver, CO, please contact Alborz Real Estate.