How Passive Income Investors Should Evaluate Rental Application

Passive income investors are those who rent their property to the tenants and earn steady income each month. In the process of renting out the property, it is important that they evaluate rental application. If you are one of them, you need to be aware as well of this fact. Rental application is not only a piece of sheet. It is important piece of the screening process equation. Picking out the right tenant is important because they will decide the future of our rental property as well. Don’t let any hectic things ruin your attempt to get the right rental application. If you spend your time to understand more about rental lease application then you can identify the best possible tenants.

How to evaluate rental application

Processing rental application doesn’t take long time. It can take one day to a week depend on the circumstances. If you want the process to be faster, you can follow most rental agencies that have online system so they can collect rental application quickly. It is easier process because then it only takes hours to gather other important information such as criminal history, credit card records, etc. The process of evaluating takes several stages as following;

  • First, you need to collect rental application. In this process, you need to require the tenants to provide all necessary information such as driver license, social security, employment information, and references. You can also asses rental application fee if you think it is necessary though it is not obligation. They are all important information to collect so you know better your tenants and select the good one.
  • The second stage to evaluate rental application is by charging application fees. It is important for you as a landlord to ask your prospective tenants to submit proof of income as well. To verify the proof, you can call the employers even though they will not give you more information aside from the verification of the tenant’s employment. This is the way to find out if the tenant has steady income to pay the rent.
  • Another way to make sure that tenants have ability to pay rent properly is by requesting proof of incomes. It is important in screening process. You can also process credit checks to add your evaluation to the tenant’s financial condition. Sometimes, there are applicants who have little to no credit. Then, the decision is yours.
  • Next is to evaluate background checks. This is important so you know who rent your property. You can also ask for references. Those are mostly a list of previous rental properties and past landlords. You can call those references if necessary to make sure that all references are true.  
  • Next, you just need to pick the best possible tenant. If you have made your decision clear, schedule the lease- signing meeting. You can also ask them to bring the first month’s rent. It is highly advisable not to skip any stage to evaluate rental application so you can make the right decision.
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