Successful real estate management is built upon having good tenants – people who are responsible, pay rent on time, and keep their residences clean. That is why tenant screenings are a necessity. The Fair Housing Act mandates that property managers treat applicants fairly during this process. Here are the most common elements of the screening process and the rules real estate management companies must abide by.
Income Level
Although not required by the rules of real estate management, Connecticut property managers may want to set a minimum income level for applicants. This ensures they earn enough money to rent the property. The typical minimum is three times the rent. So if you rent a property for $1,000 a month, the applicant should make $3,000 a month. Remember that all applicants must be treated the same, so if you allow one applicant who makes only $2,800 a month rent the property, you must allow the other applicants do so as well.
Credit Report
As a real estate management company, you can use a credit report to your discretion. You can base an applicant’s risk solely on his or her credit score or consider all factors involved in determining that score. In either case, if you allow one person with a low credit score to rent a property, all others must be allowed that same opportunity.
Rent History
An applicant’s rent history is especially important because it shows how they acted as a renter in previous environments. Did they trash the home or pay rent late every month? Were they ever evicted? These are all negative actions that could cause a property manager to think twice.
Job History
A stable job history means that a person is better able to pay rent regularly. Someone who frequently switches from job to job or has not worked in a few years may be cause for alarm. However, all applicants should be treated equally in this regard.
Screenings are just one part of real estate management. Get help managing the entire rental process from the Real Property Management Hartford Metro.
