How Salt Lake City Property Managers Screen Tenants
When interviewing Salt Lake City property management firms to decide who will take the best care of your rental, make sure you inquire about their tenant screening process. Taking the time to thoroughly investigate the credit worthiness and rental history of prospective tenants is essential to operating a profitable rental property, and the manager you choose should be able to explain the process to you. Salt lake City property managers should do all of the following when screening tenants:
1. Criminal Background Check – A good first step when investigating potential tenants is to check for a criminal history. The opinions of Salt Lake City property managers will vary about what types of offenses are the most relevant, but cases involving drugs or violence have a tendency to repeat themselves.
2. Credit Check – Credit history is another important area to review during the application process. Some property managers in Salt Lake City go strictly by the score, others will look beyond the score and check payment history, amounts past due, and the ratio between outstanding balances and credit limits to estimate the monthly debt service. Make sure the rental property manager you hire has a policy in place and follows it.
3. Income and Employment Verification – It sounds obvious, but making sure your tenant has a verifiable source of income and can reasonably afford their monthly rental payment is the most important part of the screening process. Most Salt Lake City property management companies follow the 3x rent rule and require residents to have at least one year of employment at their current job.
4. Rental History Check – Ask any Salt Lake City rental property manager and they’ll confirm that accurately verifying rental history is difficult. Tenants don’t provide contact information unless they know a reference will be positive, and as a result, many routinely provide false information. If however, you can speak with a former landlord, the reference will provide valuable insight into what type of tenant you can expect.
Most professional property managers in Salt Lake City will investigate these four areas with prospective tenants because doing so will drastically reduce the number of “bad tenants” they place. Make sure the management company you choose places an emphasis on tenant screening, or you’ll be learning the most valuable lesson in owning rentals: There is no substitute for a good tenant.
If you’d like more tips on how to avoid placing bad tenants in your Salt Lake City Rental property, then contact us today!