One of the most – if not the most important aspect of keeping your Haslet rental home profitable is to find quality tenants.
For some landlords, if someone has an impeccable credit score, then that means they are the “right tenant.” They conclude tenant approval on the idea that somebody’s credit history is a guarantee of a financially stable future. While credit scores are important, they don’t tell the whole story. A landlord could neglect an application of an otherwise great tenant if there’s too much weight placed on their credit score. Understanding what other areas or items to look for when screening applicants is a massive help when identifying who are quality tenants.
When screening rental applicants, property owners are correct to want to understand more about the tenant’s financial situation. A credit report can give a lot of information past a simple credit score, information that an owner can apply to ascertain whether or not the tenant is capable of making their rental payments in full and on time. For instance, late payments on an account that is now current can bring a credit score down but also shows the applicant is now paying their bills on time.
While an earlier vehicle repossession or a credit card charge-off is a major apprehension for many property owners, it is necessary to bear in mind that many people were negatively affected several years ago by the Great Recession. Through no accountability of their own, they may have lost their jobs or homes, but have since recuperated stable employment and kept their credit accounts well. It could also be a former medical emergency that forced the applicant to fall behind on their medical bills or student loan payments, but they’ve made good financial choices since then. In these situations, the score might be a secondary factor than the tenant’s payment history over time. A few mistakes many years ago should not prevent an otherwise solid applicant.
To get the whole picture, it’s crucial to take in as much information from the applicant that is not disclosed on the credit report itself. In the event the potential tenant has a strong reason for their lower credit score, such as those listed above, that may be a motive to keep them under careful thought. Similarly, property owners should always supplement an applicant’s credit report with references who can attest to their potential. If an applicant has a strong history of paying rent on time and a stable income, these factors may be better indicators of how they would do as a tenant than numbers on a credit report.
Tenant screening can be a complicated procedure, particularly for single-family rental homes in Haslet. Property owners commonly want someone who will be a stable, long-term tenant, making the decision an even more critical one. At Real Property Management Meridian, we perform a thorough screening on every applicant, from credit reports and beyond. Our property management professionals know what to look for, and how to select the right tenant for every rental property we manage. If you would like to learn more about our screening process or would like to speak to someone, please contact us online or by phone at 817-678-8787.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
