According to the IRS, about 10.6 million Americans earn rental income from about 17.7 million properties. If you’re one of these landlords, you want to have as smooth of a renting experience as possible.
One of the biggest parts of determining how to lease an apartment is figuring out what your lease application process will look like. Whether you’re a first-time landlord or have been in the business for years, with a streamlined process, you’ll find better tenants and have more peace of mind when it comes to your property.
Let’s take a look at what you need to know about the lease application process.
Marketing the Property
In order to get the lease application process moving, you’ll need to market the property. This will help bring in interested tenants.
Showing the property can be a helpful portion of the process. This is a great time to get to meet the prospective tenants and see how they are as people. You’ll be able to get a feeling of whether they will be good tenants or not.
You can also use this time to make sure you are both on the same page. Setting expectations early is important in a landlord-tenant relationship.
If possible, try to consider at least three groups of tenants per property. This will give you choices when it comes to your tenants, helping you choose one that will be a good fit.
Written Application
When it comes to the rental application process, it’s important that you treat all applicants the same and aren’t discriminatory in any way. One way to do this is to make sure all interested tenants complete the application. This means anyone who will be living on the property or paying part of the rent should complete an application.
Your lease application should include a few pieces of information, including:
- Contact information
- Residential history (current and prior)
- Employment history/proof of income
- Authorization to contact landlords, employers
- Authorization for credit and background checks
- Pets, if any
- Smoking
In addition, you may want to ask the tenant if they have declared bankruptcy recently or been convicted of a felony. Asking about previous evictions or refusal to pay rent can also be helpful.
Background and Credit Checks
Running a background check can help protect you, your property, and other tenants. This can also help minimize your risk, as it may be able to help prevent illegal activity from happening on your property.
In addition, a credit check will help you have better peace of mind that your tenant will be able to pay their rent consistently and on time. After all, your relationship is similar to a creditor to your tenant.
The Lease
Before your tenants sign the lease, do a walkthrough of the property with them. This will allow you to both feel comfortable about the state of the property.
Then, sit down and talk through the lease with them. Make sure to explain any major items. You should also ask if they have any questions and clarify as necessary.
Having a well-constructed lease is also critical for a landlord. By signing it, your tenant agrees to the conditions laid out in it. This not only helps set expectations but also protects your interests.
For example, if your tenant damages property or doesn’t pay their rent, you can follow through with the actions described in the lease.
Understand the Lease Application Process
Having a well-planned lease application process can make renting out your income property much easier. You’ll be able to find better tenants and have a much smoother leasing experience.
If you want to make the process even smoother, consider working with a property management company. Contact the Home River Group to get started today.