Property Management Blog
How to Find Great Albuquerque Tenants for Your Home Rental
Near flawless credit scores may not tell you the truth about a potential tenant. While an exceptional credit score is certainly important, it isn't the only sign of a applicant's stability. If you place too much emphasis on a credit score and not the other data included in the credit report, you could miss a great tenant for your Albuquerque rental property.
What's in a Credit Report?
Credit Reports can contain late payment information on credit cards, store credit accounts, and car payments. They can also include the person's social security number, previous residential addresses, and any past and current employers.
When considering the report's information, it will be necessary to verify employment, previous rental history, and phone numbers. Credit reports aren't complete records and don't tell the whole story. Many landlords don't report late rental payments, and other tenant issues aren't found on a credit report.
What Else Do You Need to Ask the Applicant to Provide?
Look for other equally important information by requesting documentation regarding employment, rental history, and criminal records.
Employment indicates whether the applicant has the money to pay a regular monthly amount for rent. Current pay stubs should cover a previous amount of time, such as one to three months. Asking for a supervisor's name and phone number may make sense, too.
Rental history or mortgage payment history might be included in the credit report. If not, request addresses of the last several rental properties or properties owned (Yes, people who rent may have formerly owned a home just like you.) and the landlord's name and phone number. You'll want to verify actual ownership of the property through county property records.
A criminal record report is different than a credit report. There are companies who can provide you with both a criminal report and a credit report. Most criminal reports include a photo of the offender, the dates of the offense, a legal description of the offense, and information about conviction. Sex offenses, sexual or physical abuse, and violent offenses are all reasons to refuse an application.
Legal Reasons You Can Reject an Applicant
Landlords are not required to provide housing for people who have histories of violence or criminal activity. Other information may be revealed during the application process that lets you know the person isn't a good fit.
You can legally pass on an applicant because they:
Don't make enough income: Typically, apartment rental applicants must prove they make 2x the amount of rent to become a tenant. In the single-family home rental market, it's usually 3x the amount of rent. Property management companies often use a predesignated formula that uses all financial data, not just income, to make a final judgment about financial capability.
Smoke: No smoking is a typical requirement for tenants in both apartments and homes. Nicotine and marijuana smoke permeates drywall and construction materials and can ruin the value of a home.
Can't prove income: Once you have the pay stubs in hand, you'll want to verify them with the HR department of the company that employs the applicant.
Have arrest records and criminal convictions: Any violent or questionable activity such as vandalism, arson, trespassing or theft are reasons to reject and applicant. Convictions for murder, assault, rape, or abuse should automatically result in a rejection.
Have a prior eviction or a history of not paying rent on time: Previous landlords can tell you about past rental history. Sometimes the credit report will reveal information that alerts you to an ongoing tenant issue.
Incomplete applications: You can't be certain about an applicant if they aren't forthcoming with personal information.
Making a Final Decision Based on the Data
If the person has missed a few payments in the past, but has corrected the problem, they could still be a good tenant.
It's important to follow all federal housing regulations. This includes meeting federal guidelines for private rentals and not just public housing.
Discrimination on the basis of gender, sexual orientation, race, color, national origin, religion, disability, or marital status is against the law.
We find awesome tenants!
At Tyson Property Management, we work with our applicants to ensure an accurate picture of their ability to pay comes forward during the screening process. Stable income and a history of paying rent on time are important factors we review. Tenant screening requires an attention to detail and the gathering of complete information. Our property management professionals are skilled at finding and managing tenants for our property owners.
Find out more about why owners choose Tyson Property Management to take care of their real estate investments. Contact us today 505-323-2104 to speak to a Albuquerque property management specialist about your landlord needs.
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