Leasing a Temecula rental property has become more complicated recently, especially when it comes to the screening process. With COVID still alive and well, the eviction process is nearly impossible, which makes it more important than ever that you find a well-qualified tenant for your rental property.
We know it’s also a difficult area for landlords to navigate because of the strict laws that govern what you can consider and what you cannot consider when you’re conducting background checks and screening tenants.
The purpose of screening tenants is to limit your risk and to ensure you’re renting to a responsible person who has a good history of paying rent on time, taking care of properties, and following lease terms. It’s a bonus if you can find someone who wants to stay in place for the long term and communicates well.
When you’re screening for the best tenants in the Temecula Valley, we recommend you pay close attention to income and rental history.
Temecula Tenant Screening: Credit Payment Histories
A lot of landlords are quick to look at the credit score. You don’t want a score that’s alarmingly low, but take the time to look through the full credit report before you make a judgment on the applicant’s financial health. High student loan or medical debt can really wreck a credit score, but it doesn’t mean the applicant is a risky tenant.
When you’re reviewing an applicant’s credit report, take a look at what the overdue bills and missed payments reflect. If you see outstanding water bills, utility bills, phone or cable bills, it could mean trouble. You want tenants who take their housing payments seriously. If someone cannot or will not pay an electric bill, there’s a good chance that they may not pay the rent, either. Be wary of any debts like this that you find on the credit report.
Temecula Tenant Screening: Income
Set some income standards depending on what the rental amount is for your property. The property management industry standard is typically to require that tenants earn at least three times the amount of your monthly rent. It’s a good starting point, and it ensures that your tenants are bringing in enough money to pay you on time every month.
Remember that income standards are important, and you can have them, however fair housing laws prohibit you from accepting or denying an applicant based on where their income is earned. This law has changed to now include Section 8 tenants. If you have an applicant who receives Section 8 benefits, you cannot refuse to consider their application. Those housing voucher benefits count as income, and you’ll have to screen them the way you’d screen any other tenant.
Be careful with this part of your screening process. It’s easy to make an expensive mistake if you don’t understand the full extent of the law.
Temecula Tenant Screening: Eviction Search
Conduct a nationwide eviction history check. We do not recommend renting to anyone who has an eviction on their record. Setting this standard for every application will keep you consistent and fair. You might want to adjust your own standards to say you won’t rent to anyone with an eviction in the last 10 years. When it comes to rental history, we’ve found that past behavior often indicates future behavior.
These are just a few of the things to look at when you’re screening tenants for your rental property. We know it can be overwhelming if you don’t have the experience and the resources that a professional Temecula property manager has. If you’d like some help, please contact us at Management One Professionals. We provide single-family and condo landlords, rental property owners and real estate investors expert property management services throughout the Temecula Valley, including Temecula, Murrieta, Winchester, Wildomar, Menifee, and Lake Elsinore, and other surrounding cities.
