4 tips for screening tenants for your new Newark rental property. As a real estate investor, your role as property manager requires you to understand the importance of screening tenants to the future of your returns on an investment is as significant as the property’s location.
Just as you must perform due diligence before investing, you must perform thorough tenant screenings to protect your income stream, the property, and other tenants. So read on as we reveal four great tips for screening tenants for your new Newark rental property.
The first filter in screening tenants for your new Newark rental property is the application you use for potential tenants. You’ll want to ask for proof of identification, pay stubs, or bank statements to prove income, their social security number, and signed permission to run credit and background checks. You’ll also want to ask for references from prior landlords. Many landlords charge an application fee to offset the costs associated with the application process.
Check their employment status. How long have they worked at their current job? What is their debt to income ratio. Can they afford your rental?
How much rent were they paying in the prior apartment? Why are they looking to move from their current unit?
Will they be moving in by themselves? If not are they married? Do they have children? What are the ages of the children?
Any Pets? How many.
There are several federal, state, and local laws governing the landlord-tenant relationship, including the process of screening tenants for your new Newark rental property. While there are exemptions, from the advertising you place to market the property, to limits on application fees, to fair housing laws, you must understand these guidelines to avoid facing severe penalties. Therefore, it’s always advisable to seek the guidance of experienced professionals in the real estate industry as a further guard against making expensive mistakes.
Hire a local real estate attorney to assist in drafting any documents to ensure you are abiding by all local and state laws. Make sure the attorney is well versed on local Landlord and Tenant laws.
Ask how long the eviction process would be in the event you have to exercise such action and what steps are involved in order to conduct. Has the process changed or been delayed because of COVID? If so what has changed regarding timing and the process? If the process has changed does the attorney see any recent progress on the process or what do they predict?
Has there been an uptick in evictions in the area recently what is the current rental market now? How does it look? Is it improving since COVID? What do they foresee in the next one, three and six months?
It is well worth taking the time to conduct a personal interview when you are screening tenants for your new Newark rental property. However, it’s best to have a script to follow which remains within legal guidelines to protect yourself from asking the wrong questions. It is not possible for everything that adds up to excellent tenant placement to be on paper. Your real estate investments are your business; the difference, the applicants you approve will pay your current income, help you build your wealth, and provide you with the foundation for a secure income in retirement. Because the placement of the wrong tenant can be costly, you must get a good feel for the tenant before doing so.
Background and References
Once you’ve received the application and conducted the interview, there is one step remaining in screening tenants for your new Newark rental property. You must follow through with thorough background and reference checks. Regrettably, landlords often understand the importance of this step when faced with the consequences of their failure to act. Not only could you have lost income from missed payments, there are turnover costs, legal fees, and the hassle of evictions to deal with, but they could also cause property damage or even cause other tenants to leave the premises.
Why not let the pros at Tristate Holdings 167 handle screening tenants for your new Newark rental property and avoid tenants that are hazardous to your investments? At Tristate Holdings 167, our local professional investors and our team of the most highly regarded real estate industry pros are here to help, from attorneys to property management and everything in between. Because our professional home buyers are a part of the Newark real estate market, they have an investors outlook. When you work with Tristate Holdings 167, you can be certain we’ll keep you on top of upcoming market trends, local zoning changes, and anything else you need to know to adjust your investment strategy in real-time. At Tristate Holdings 167, we can take on as much or as little of the role of the landlord as you like; we make it easy for investors like you to achieve your goals. Call Tristate Holdings 167 Inc. at 1-(888) 788-7478.
Tristate Holdings 167 is a team of Cash Home Buyers. We Buy Newark Houses in the following surrounding areas of Newark, New Jersey, (Harrison, Kearny, East Orange, Irvington, Orange, Hillside, Belleville, North Arlington, South Orange, Bloomfield, Maplewood, Elizabeth, Union City, Bayonne, West Orange, Jersey City).
Whether you are trying to avoid foreclosure, inherited a property you do not want, dealing with a divorce, or are fed up being a landlord dealing with tenants, we can help. If you need to Sell Your Newark House Fast, we offer Cash For Homes in Newark NJ!