The number one goal of any landlord is to fill their units, right? This can sometimes get in the way of finding the tenant that will treat your space with respect.
This is why knowing how to screen a tenant is crucial for rental success! This process may seem overwhelming at first, but once you understand these central checkpoints, vetting a tenant will be easy.
Equal Housing Laws in Texas
To find the perfect tenant for your unit, you need to understand the equal housing laws in your community.
In this case, Texan tenants are protected by the Fair Housing Act. This keeps landlords from discriminating against their tenants depending on seven key factors.
Texas landlords are not allowed to judge their potential tenant's rentability based on race, color, religion, sex, national origin, disability, or familial status when tenant screening.
Texan landlords cannot refuse to rent or sell properties to families with children. They also cannot deem a property "adults only."
Checking Credit Scores
Credit reports are a great way to screen your tenant. This shows how often your tenant was able to complete a payment on time, their debts, and their credit score.
Every landlord has a different threshold of credit score they'll accept!
This is because young renters won't have a credit score. Even renters with lower credit scores are often willing to take extra steps to prove to the landlord they're able to make payments on time.
Keep this in mind when checking your tenant's credit report.
Bank Statements Can Be a Landlord's Best Friend
Bank statements are the quickest way to understand your tenant's financial capacity.
Requesting your tenant's bank statements allows you to see the ratio of money coming in against monthly spending, helping you gauge whether they'll be able to afford rent monthly.
Bank statements are also helpful when contemplating renting to someone self-employed or freelancing.
There are many instances where self-employed tenants might use a payment platform like Venmo or Paypal to keep track of their business income.
Requesting these statements will have their transactions laid out neatly, clearing up any questions you may have.
Why Learning How to Screen a Tenant Can Be Crucial For Rental Success
Learning how to screen a tenant will be the most beneficial thing you learn as a landlord. This will not only help you separate the bad tenants from the potential prospects but also ensure your unit will be respected.
Vetting a tenant may seem like a daunting task, but understanding these three key factors in the screening process will take a lot of the grunt work out of the practice.
Always remember to deeply decipher the housing laws in your area before you begin your screening process. Understanding both the landlord and tenant's rights will protect everyone in the long run!
Between understanding renter's rights, checking credit reports, and requesting bank statements, you'll be on your way to finding the right tenant for your unit.
For more information and resources on how to screen your tenant, please visit the rest of our page.
