How Real Estate Investors Qualify Tenants

Frank Chen

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on the process of qualifying tenants for your rental properties.

Qualifying Tenants – Rental Application

Gather basic information – contact info
Contact Info of Previous Landlords – Rental History
Questionnaire – some applications – gives you an idea about smokers, pet owners, rental habits
Credit Check Authorization Form – collect a fee for credit checks, most tenants are use to it $20.
Background Check Authorization Form
Request a copy of a paycheck stub (or tax returns if self-employed) – verifying their income
Request to see driver's license or social security card to verify identity
Needs to be Neat and Legible

Qualifying Tenant – Credit / Background Check

Identify the tenant's previous rentals – contacts
Payment History – on time?
Debts – credit card, car payment, jewelry – all affect tenant's ability to afford rent
Bankruptcy – Discharged vs. Pending – pending may absolve all rents owed, including yours.
Judgments and Liens
Employment History – employer info
Criminal History
Credit Score – 650+ Good enough
National Tenant Network
Annualcreditreport.com – Equifax, Experian, TransUnion – $8
freecreditreport.com – Experian

Qualify Tenants – Verification of Employment and Rental History

Helps identify behaviors, patterns, and to anticipate future situations
Call the Landlords – just like any cold call, build rapport, and ease them into the big questions.
(Walk them through a sample introduction)
Call the Employers – Simply to ask how long? How is she as an employee (job security)?

The pre-approval process of qualifying tenants is the determining factor between ending up with a good tenant, or a bad tenant. Your real estate is an expensive investment, so it is very important that you are diligent and cover all your bases when qualifying tenants. If you have a hard time remembering things, make a checklist of everything you need and bring it with you to all your showings.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.