Renting your house, condo, or apartment to strangers always raises Red Flags. Like banks must “know your customers”, you need to learn: “10 things landlords should know about their tenants.”
KEY TAKEAWAYS
- Learn 10 questions to ask tenant applicants to know them better.
- Some questions ask about the current job type, current home, and landlord’s name to contact with questions about the applicant.
- The question about income includes a Rent to Income Formula to determine if the applicant can afford the rent.
- Also, some questions ask about tenancy longevity and the reason for moving.
- In addition, questions ask about smokers and how many will occupy the house or unit.
- Another question asks about pets where we explain California’s emotional support animals laws.
- Finally, the last question asks for permission to do a background and credit check.
- Answers to these 10 questions provide landlords with valuable information about each applicant.
10 Things Landlords Should Know About Their Tenants
A landlord is a business. You must be careful who you do business with. Screening tenant applicants helps to weed out the bad ones. Yet, not knowing what to ask prevents you from getting important information.
Here are 10 suggestions about how to get to know your tenants before they rent from you. These 10 questions in your tenant application form will reveal essential things about them.
1. Are You Currently Renting, if so, Where and from Whom?
The answer reveals the applicant’s current address and the property owner. Contacting past landlords about the tenant will provide valuable information about their pros and cons. Now you have the opportunity to ask the current landlord the following questions:
- Does the tenant pay rent on time and in full?
- Any problems with the tenant’s behavior?
- Did the tenant take care of the property, fixtures, furniture, and appliances?
- Did the tenant promptly notify the landlord about the house or unit problems?
- Any complaints from neighbors about noises or late-night parties or other bad acts?
- Did the tenant meet all of the lease obligations?
- Is the tenant clean?
2. How Long Have You Lived in Your Current Home?
The answer should reveal the longevity of renting a house or unit.
If you get an answer of less than one year, you must ask about past tenancy periods and why the tenant moved?
A wanderer or vagabond will not make an ideal tenant. Constantly dealing with vacancies means added expenses to clean up the unit and advertise for a new tenant.
3. Why Are You Looking for a New Place to Live?
This answer may reveal the inability to rent for the full lease term. If the answer is, “My landlady asked too many questions or she was snoopy” It may show the importance of personal privacy. Or, maybe the landlady had problems with the tenant requiring surveillance?
An answer like, “I just needed a different environment” may indicate a restless, unsatisfied person who is not stable staying put for a year or more.
On the other hand, an answer like “I just got a new job close to here” shows financial stability and a need to stay for a long time.
4. What Kind of Work Do You Do?
Knowing that a tenant has a good-paying job or is in a respected profession shows stability.
Or, an answer like “I do different jobs or short-term work” indicates instability. Nothing worse than renting to a new tenant who is out of work in a month and can’t pay the rent.
5. What is Your Monthly Income?
If the rent is $1,500 per month, you need a tenant who can afford it after deductions and paying for monthly necessary expenses. Someone making $2,000 a month won’t have enough left after expenses to pay your rent.
Experts like TransUnion say that the monthly rent should never be more than 30% of the income. The formula looks like this:
Rent to Income Formula
(Gross Annual Income ÷ 12) X .3 = Maximum monthly rental income
For example, a tenant making $60,000 per year using this formula shows:
($60,000 ÷ 12) X .3 = $1,500.
Thus, a tenant must earn at least $60,000 per year to afford a $1,500 per month rental.
6. How Many People Will Live with You?
Is this a single person? Does he or she have a spouse or partner? How many children will live with them?
The wear and tear of a house or unit depend on how many people live there. From a maintenance standpoint, a single person causes less wear and tear than multiple occupants.
On the other hand, the best tenants who stay long-term are families. One or both parents have nearby jobs, the kids attend nearby schools, all creating long-term stability.
7. Are There Any Smokers in Your Household?
Smoking cigarettes or other tobacco leads to smelly furniture, curtains, and rooms. Also, ashes drop onto beds, sofas, chairs, and carpets causing burn marks. Not to mention how many home fires are caused by burning cigarettes and cigars.
Pot smoking, while legal in many states, creates a distinct odor that lingers in rooms and furniture. A joint can cause as many burning and fire hazards as a cigarette or cigar.
8. How Many Pets Do You Have?
If the tenant has pets, you must ask about the breed, size, and weight of each pet. Small pets cause less damage. Certain dog breeds are more aggressive than others.
Exotic pets like snakes, predatory birds, and animals may be illegal where you rent. Likewise, special permits may be required of the pet owner.
State laws about pets differ. Some allow landlords to have a “No Pets” policy. Others allow landlords to ask for a non-refundable “Pet Fee” to pay for the damages and cleaning up after the tenant vacates. Others allow for a “Pet Deposit” refundable after the tenant vacates if the pet didn’t cause any damage.
Emotional support animals assist disabled tenants and federal and some state laws require landlords to accept them without charging a fee or deposit. Learn more about the California emotional support animals law in our post, “Must Landlords Allow Emotional Support Animals?”
9. What Date Do You Want to Move In?
Too many times the lease termination date of the applicant may conflict with your vacancy date. Tenants do not want to break their lease early and lose their deposits.
Yet, you do not want to lose money by keeping your house or unit vacant for an extra month.
Finding a tenant who can move in right away (if your rental is vacant) or right after your current tenant vacates is critical. Don’t miss a beat, make more money when the timing for moving in correlates with your vacancy.
10. Will You Permit Me to Do Background and Credit Checks?
Even if your jurisdiction allows you to perform background and credit checks, it’s a good idea to ask beforehand. Why? Because if they refuse assume they have something bad to hide and reject the application. This will save you time and money.
Always perform background and credit checks on your finalists. You want to know about past criminal history, evictions, bankruptcies, and poor credit scores. This will help you to eliminate the bad applicants.
Read our informative posts about these checks titled:
- “How to Do Tenant Background Checks”; and
- “How to Thoroughly Evaluate a Prospective Tenant’s Credit”.
10 Things Landlords Should Know About Their Tenants – Conclusion
Learning about the 10 things landlords should know about their tenants makes it easier to accept or reject vacancy applicants. These include:
- If the applicant is currently renting, where and from whom;
- How long has the applicant lived in the current home;
- Why the applicant is looking for a new home;
- The kind of work the applicant does;
- The applicant’s monthly income;
- How many people will occupy the rental;
- If smokers will live in the rental;
- If pets will live in the rental along with how many, type, size, and weight;
- The starting date for occupancy; and
- Permission for background and credit checks.
Learn more about screening tenants in our useful post, “How To Screen Tenants | Questions for Potential Renters”.
If You Own One Or More Rentals in San Diego County
WeLease Property Management Company not only publishes posts about becoming a better landlord, but we also provide professional property management services.
Contact us if you already own rentals of all types and sizes in San Diego County. Or, are thinking of buying rental properties in the Greater San Diego Area. We handle all types of housing rentals from single-family homes to large apartment complexes.
Steven Rich, MBA – Guest Blogger
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