As a homeowner, you want to ensure that whoever is going to live in your home is someone that is going to pay the rent on time each month and take care of the property. Screening tenants thoroughly on the front end is a great indicator of the type of tenant they will be throughout the term of the lease. Alabama Rental Managers has a 5 point screening process:
1. Credit Check
On the credit check, we are looking at individual accounts and the payment history associated with each account. If an applicant has a Bankruptcy, we will determine whether that Bankruptcy is Chapter 13 or Chapter 7. For a Chapter 13 Bankruptcy, an applicant must be at least 12 months into Chapter 13 payments. For a Chapter 7 Bankruptcy, an applicant must be discharged for at least 6 months. If an applicant has a Foreclosure or is currently going through a foreclosure, their approval will be based off of any rental history they may have, other accounts on their credit report, income, and how long they owned the home that was foreclosed.
2. Background Check
We want to make sure that whoever is going to live in your home does not have any felonies.
3. Employment Verification
On the rental application, applicants are required to provide their current employment information. Our team wants to make sure that the potential tenant will be receiving monthly income on a consistent basis.
4. Income Verification
Alabama Rental Managers requires an applicant to make at least 3 times the monthly rent of the property for which they are applying. Income has to be proven by providing pay-stubs, bank statements, or a tax return.
5. Rental Verification
This is one of the most crucial pieces of the application process. If the potential tenant has consistently paid rent on time for several years and has recommendations from previous landlords, that speaks highly to the prospect’s ability to be a great tenant.
In some cases, well-qualified cosigners are allowed if the applicant is not a strong candidate on their own. While you can never guarantee a tenant’s behavior once they are living in the property, a thorough application process can drastically cut down your risk as a homeowner. If you have any questions about managing your property, Alabama Rental Managers would be happy to provide answers and solutions.