Millions of eviction cases are filed by landlords across the country every year, highlighting the challenges of finding reliable tenants. For landlords in Chicago, avoiding costly evictions and troublesome tenants starts with thorough tenant screening. Proper tenant screening not only helps protect your investment but also ensures a stable and positive rental experience.
At PMI Cook County, we emphasize the importance of effective tenant screening practices to help landlords find trustworthy renters and minimize risks. Here's a quick look at the best tenant screening practices to be aware of.
Establish Clear Rental Criteria
Before advertising your property, it's important to define your rental criteria. This should include income requirements, credit score thresholds, and any other qualifications you consider essential for potential tenants.
For example, a common standard is requiring that tenants earn at least three times the monthly rent in income. Having clear, consistent criteria not only helps you find qualified renters but also ensures that your screening process is fair and legal.
Use a Comprehensive Rental Application
A detailed rental application is the first step in getting to know potential tenants. Make sure your application asks for essential information such as:
- Current and past addresses
- Employment details
- Income
- References
You should also include questions about pets, smoking, or any other factors that may affect your property. Additionally, be sure to include a clause that allows you to perform a tenant background check and credit checks on applicants.
Perform a Credit Check
A credit check gives you insight into an applicant's financial history and helps determine whether they are likely to pay rent on time. While a perfect credit score isn't always necessary, you should look for:
- Patterns of late payments
- Outstanding debt
- Bankruptcies
Red flags like these can indicate a higher risk of missed or late rent payments, so it's essential to review an applicant's credit report carefully.
Verify Employment and Income
To ensure that a potential tenant can afford your rental, you need to verify their income and employment status. You can request recent pay stubs, tax returns, or bank statements as proof of income.
It's also a good idea to contact their employer directly to confirm their position and job stability. Tenants who have consistent, reliable income are less likely to miss rent payments, providing you with peace of mind.
Check Rental History and References
One of the best ways to assess a tenant's reliability is by contacting their previous landlords. Ask about their payment history, how they treated the property, and whether they followed the terms of their lease.
References from former landlords can provide valuable insight into a tenant's behavior and help you spot potential issues before they arise.
Chicago Property Management Tenant Screening
Effective tenant screening is essential for protecting your rental property and ensuring a smooth landlord experience. By establishing clear criteria, performing credit and background checks, and verifying references and income, you can confidently select tenants who will pay rent on time and take care of your property.
At PMI Cook County, we specialize in property management and tenant screening services, helping landlords in Chicago find the best tenants for their properties. Contact us today to learn how we can assist you with your rental property management needs.
