With the rise in housing prices, and a shortage of affordable housing more and more people are continuing to rent vs. buy. As a landlord, ensuring that you have the right tenants for your rental property is crucial. Proper screening and selection of tenants can prevent problems such as late rent payments, property damage, and an arduous eviction process in Chicago, IL. If you are a first-time landlord or a seasoned landlord, here are some useful tips for screening and selecting the ideal renters for your property.
- Develop a Thorough Tenant Application Process: The first step in screening potential tenants is to develop a comprehensive and thorough tenant application procedure. Have potential tenants fill out a formal application to verify their identity, employment history, rental history, credit score, criminal history, and references. During the application process, be sure to follow all applicable fair housing rules and regulations.
- Verify Income and Employment History: Verifying the income and employment history of prospective tenants is critical to ensure they can afford the rent every month. Request proof of income, such as recent pay stubs, and verify the information provided. Typically, tenants should have a monthly income that is at least three times the rent amount to ensure they can meet their financial obligations.
- Check Credit History and Score: A tenant’s credit history can provide valuable insights into their financial responsibility.
- Contact Previous Landlords for References: Ask potential tenants to provide you with the contact information for their previous landlords, and reach out to those landlords to inquire about the tenant’s rental history, payment history, and any issues that arose during their tenancy.
- Conduct a Background Check: Conducting a criminal background check is crucial to ensure the safety of your property and other tenants. However, be aware of the legal restrictions in your area regarding using criminal history as a basis for tenant screening to avoid any potential discrimination.
- Meet Prospective Tenants in Person: Schedule an in-person meeting with prospective tenants.
- Check for evictions: The Cook County Sheriff’s Office provides an online database of eviction cases filed in Cook County, which can help you to determine if a potential tenant has a history of eviction.
- Set Clear Expectations: Clearly communicate your expectations and rental policies to prospective tenants. Provide them with a written lease agreement that outlines the terms
and conditions of the rental, including rent amount, due date, security deposit or move-in fees, and maintenance responsibilities. It is important to go over these terms with prospective tenants to be sure they understand and agree to the terms of the lease before signing.
Screening and selecting tenants for your rental property is key to having a successful rental property and avoiding the arduous eviction process. By developing a thorough tenant application process, verifying income and employment details, and checking credit history and references, you can increase your chances of finding reliable and responsible tenants who. If you find yourself in a situation where you have skipped one or more of the key steps in screening potential tenants and you are considering selling the property, give us a call at Onyx Homes LLC, we buy houses in Chicago for cash and in any condition. Contact us at (847) 262-9012.