As a landlord in Washington DC and Northern Virginia, finding the right tenants is essential for maintaining a successful rental property. Proper tenant screening mitigates risks and ensures that your investment remains profitable and hassle-free.
But what are the right tenant screening practices to follow? Below are some of the best ways that landlords can properly screen tenants in DC and Northern Virginia to find the right fit for their rental properties.
Follow Rental Laws
Before initiating the tenant screening process, it’s critical to understand the local laws and regulations surrounding property rental.
Both Washington DC and Northern Virginia have specific tenant-landlord laws to protect both parties. Ensure compliance with the Fair Housing Act and other local regulations, such as DC’s Tenant Opportunity to Purchase Act (TOPA), which grants tenants the right of first refusal when an owner decides to sell their property.
Familiarizing yourself with these laws helps ensure a smooth screening process and protects you from potential legal issues when screening tenants.
Use a Detailed Rental Application
A thorough rental application is the best way to initially screen tenants. Include sections for personal information, employment history, rental history, and references.
A detailed application helps you get the information you need to properly evaluate prospective tenants. It also shows that tenants can follow directions and gives you an initial impression of their communication.
Don’t forget to ask for consent to run credit and background checks in the application to ensure transparency and legality.
Do a Background Check
Conducting a background check is a non-negotiable step in the tenant screening process. It helps verify the information provided on the application and checks for any discrepancies or red flags. Essential checks include:
Credit check. Evaluates the tenant’s financial responsibility and highlights any past financial issues such as bankruptcies or late payments.
Criminal background check. Reviews the applicant for any criminal history, which is crucial for ensuring the safety and security of your property and the community.
Rental history verification. Allows you to contact past landlords to verify the applicant’s rental history, payment track record, and overall behavior as a tenant.
Evaluate Income and Employment
Reliable tenants typically have a steady income and stable employment. Ensure that applicants meet your income requirements, commonly set at three times the monthly rent.
Request recent pay stubs, bank statements, or a letter from their employer to verify this information. For self-employed individuals, reviewing tax returns or 1099 forms can provide a comprehensive view of their income stability.
Conduct Interviews and Reference Checks
Interviews offer a valuable opportunity to assess a tenant’s communication skills and professionalism. During this interaction, observe their demeanor and willingness to cooperate, which can often indicate how they will behave as tenants.
Reference checks, including talking to employers and previous landlords, provide additional verification of the tenant’s character and reliability to help you better assess their candidacy for your investment property.
Use a Scoring System
To ensure objectivity in tenant selection, develop a scoring system based on your criteria. Assign points for various factors such as income levels, credit scores, rental history, and references. This method provides a clear quantitative measure that can guide you in making informed decisions when reviewing multiple rental applications.
A scoring system can also help you create consistency in your tenant screening process to avoid biases and maintain fairness. Establish clear policies and criteria beforehand and apply them consistently to all applicants. This practice not only helps in selecting the best tenant but also protects against potential discrimination claims.
Partner With a Property Management Expert
If managing tenant screening seems overwhelming or you consistently have problems with the tenants that make it through your approval process, partnering with a professional property manager can help. Experienced property management firms offer comprehensive tenant screening services to ensure every aspect of the screening process is handled efficiently and professionally.
Contact Circle Property Management Today
Don’t leave the success of your rental property to chance. Contact Circle Property Management today at (703) 349-0144 to learn how our professional services can streamline your tenant screening process and more, ensuring peace of mind and maximized returns on your investment in DC and Northern Virginia.
About The Author
Patrick H. Page - Principal Broker | Licensed in Virginia and the District of Columbia
