Tenant Screening | Property Management Tips
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- Опубликовано: 3 июн 2024
- Background and Credit checks are always a good idea too! However, in my area, they are not standard and we actually had less positive experiences when we got tenants through a property management company who did credit checks as part of their screening process. Personally, I have the most success by avoiding the red flags in this video and relying heavily on previous rental history.
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As a former landlord EVERYTHING this woman says is spot on. I wish the internet was invented when I started renting.
I Agree 👍!!! Since I hired a property manager my business is running Much better!!!! I'm not Good at screening these tenants!!!! I Fired myself!!!! Smokers are Absolutely the Worse!!!!!!
Some times it good to have smokers. It's hard for them to find another place so they stay with you for a long time.
We are the best
I wouldn't want a smoker for ANY amount of time! @@crand20033
Can you share your property manager contact?
You are young but knows a lot with confidence. Explain very clear, easy to understand and point very well. I took a lot of memo for my future tenant. I appreciate all !!
Mandy, you are so real!! My dad has a property manager that really doesn't do things thoroughly... or at all without us having to remind her. We're thinking of shifting the responsibility to myself, and your videos have been so helpful. Everything you share is realistic and practical -- exactly what I need. Also, you have such a kind and gentle personality! Thank you for being you and sharing your wisdom!
Screening is just so important for landlords and doing it right is critical. Love these great tips. 🙂
I inherited my parents home and I thought I might rent it out. The first woman I showed it to told me she could put two beds in the attic and one in the basement.
I listed and sold the property.
@@2pugman😂
Mandy, my wife and I are just about to shift from a property management company to handling the rental process ourselves. Your videos are a great source of reality-based information. Thank you!
What was wrong with the mgmt company? Do you still prefer managing yourself?
screw there 10% charge
Just know the laws on evictions and don't hesitate to do evictions if needed.
@@crand20033 Try to evict a woman and her kids w/o a husband. The courts will allow her to stay for months and NO rent.
@@2pugman I do not think that is true. The law is the law. Judge have to do what the law states.
You hit it, Mandy! Background check should be the PRIORITY of landlords. The worst part of skipping this step is getting your property be seized by the government if the tenant turns out to be a law violator. Civil forfeiture is real, and this may happen to any landlords if they do not take screening seriously. Drug-related and money-laundering related crimes conducted by tenants in your property may lead to civil forfeiture, and this will surely cost you lots of money to prove your innocence.
Hi how or where I can get a rental agreement or where to buy it.
Good presentation and clarity Mandy. I really appreciate it as my wife and I are technically now Landlords/Property Investors. Every little bit counts.
love your videos! I have 48 units and your videos are more informative than bigger pockets. More helpful information in 3 of your videos than 25 BP videos. keep up the good work.
BP book called managing rental properties is gold. I'm not defending BP or taking credit away from Mandy, she is good. BP is my goto but I also branch out to see if anyone has other ideas, perspectives.
Wow. I'm just impressed with your knowledge. Thank you for the awesome video!
Thank you Mandy. Concise and thorough.
Sweetest source of real estate advice
Excellent tips. Very clear and helpful.
I'm always amazed at the applicants who ask if I would make an exception for their beautiful well-trained, well-behaved, above average dog, cat, bird when I've already listed that "Pets Are Not Allowed".
When I advertise I use the phrase "Absolutely No Pets". Once in a while I get that question, but adding the word "Absolutely" seems to have helped. I do sometimes get the calls about a service animal. More often than not, it's just a doctor's note that "little Johnny" is nervous and the animal helps keep him calm. That alone does not turn a pet into a service animal.
I love your way to explain things👍
Thanks for sharing info, quick question - do you run their credit by your own or do you have any company to do that? If yes plz commend.
Great tips! Thanks for sharing!
I give potential landlords references for my pets - One from my current landlord and one from my vet stating that the cat(s) have no pottying problems or destructive behaviors. That helps to demonstrate that I am a responsible pet owner and the pets are well-looked-after.
I recommend the same to other pet owners.
That’s a really good idea! We stayed in an Airbnb once with our dog and the host added that she was really well behaved and did cause any problems in the review. I’ve always been really thankful that she did that Incase we travel with our dog again.
I'm a cat person myself but my agent said only to accept dogs , with an extra deposit, and not cats. If they pee on the floor, it's ruined
I might add one: people who want to pay a year or more up front. In my state, your tenant could be the worst ever, but if the rent is paid, it is next to impossible to get them out. I don't need that much cash right away. I'm happy to get it every month. People who have that kind of cash laying around, but are NOT buying a place of their own, are sometimes into dirty stuff. I also NEVER accept a personal check as move-in rent and deposit. I take cashier's checks, because I know it will be good, and they have a record that they paid me. Win-win.
We rented a guy who pre paid 6 months. Worst renter ever. His dogs were aggressive and bit one of our neighbors. I had to hire a lawyer to evict him because the renters allowed the kids to keep letting the dogs out.
I was trying to rent in New Jersey in 2017. Landlords were taking deposits & fees like 50x more than they had units avail. Like a yr & a half out! I ended up leaving vs having my deposit forfeited. I mean a yr & a half out they call u. "Ur apartment is ready." Ur in a tent by then in another city or something 🐒
@@willc5512 Yeah, that scam is getting cracked down on, thankfully.
If they want to pay with a personal check, "Let's meet up at your bank" - cash the check there and then, and wire the money to yourself if you don't happen to have an account there.
So young so clever Loved the video and help
Great video. Is it hard to take some to small claims court? Thanks
Great info. Question Mandy are your properties long distance, if so how do you get the keys to tenant? Fedex? Lockbox with code that changes via wifi? A real estate agent? That was a good video BTW.
we're starting the process to manage a property for a family member and thanks for the tips, +sub!
Great advice. Thanks
Very helpful tips. Thanks!
Thank you. Very informative!
Very helpful. Thanks
Keep this going please. Many good info shared.
Very nice tips, great video.
This is really good info thank you!
On the pet topic. I prefer to say "no pets", as simple as that. I'm surprised you didn't mention implementing a monthly pet fee or pet deposit...or combination. The property I just purchased already had tenants in place, one tenant was allowed 1 pet which was a chihuahua as per the lease. When I did the pre-settlement walk through. They had 2 chihuahuas, a pit bull, rabbit, guinea pig and numerous fly strips hanging from the ceiling Yeah...they won't be staying long.
And it's exactly a******* like you Who caused a lot of these animals to die in shelters 🖕🏻🖕🏻🖕🏻🤬🤬
Just bought my first rental house. Subbed and liked
Hi. I see you didn’t mention credit scores on your criteria. What are your thoughts on that?
Hi. Great video!
Was very informative.
Please do a video on how to get your commission on time from property owners
@It’s Mandy Can you help provide information about tenant applications… what provider or website do you use for the application? As well as for screening?… thanks in advance!
Great video! Thank you 🙏
New landlord here 😢 this was awesome thank you ❤
Good job! Thanks for the video!
Hey Mandy! What do you think about using a comprehensive software, like DoorLoop or Zenplace, to do tenant screening as part of a bigger application process?
Rent Perfect
Great video! Thank you
Awesome video. Knowledgable and cute as a bugs ear👌
Great video, you are good. Thank you.
Great info. Keep it up. All info is good info esp your practical knowledge of how you dealt with various management issues. Can you explain how to do background checks, namely credit checks, criminals checks, etc. Thanks.
Is there a tool you use for gathering tenant information?
Hi Mandy, do you an example of a tenant screening form?
Thanks. Great video.
Great video! Thanks
Definitely agree on smoking. And vapers….most will vape inside
Screening is so critical!! I've seen some people skip steps and face the consequences for it. You really want to be thorough. Dot those i's and cross those T's. Great video though thank you!
Do you have a background service you can recommend? Thanks-
Love this video!
Question for the community...I have a friend that received a 30 day notice to vacate (after she submitted a complaint of possible mold in the apartment). She found a condo for rent and the new landlord wants to contact the current landlord as a reference but the current landlord refuse to assist the tenant. They have ceased ALL communication with the tenant. Is this legal? What other options does the tenant have in this situation? Any recommendations and suggestions are greatly appreciated!
@It's Mandy
Thanks for the helpful points here. I'd like to know how you filter through properties to acquire. What do you look for and what are red flags that help you reach your final decision?
To add on to this: Are there any certain types of amenities that it should have, what locations work best (in a micro sense of the word), and any types of fixtures, flooring, electrical/water/gas systems that you avoid or desire? I realize this can be a complex topic and may be more content than for a single video.
@@1077mikev Thanks for the video idea! I will make a video covering this topic very soon!
That's a great question because my property has a pricey furnace that only 1 company can fix and the thermostat was 800 bucks
Great advice. Tenant screening, in my view, is the most important part of real estate investing with making sure the numbers work after getting bids prior to purchase of the property. I totally agree with your points especially on the ones regarding wanting to move in quickly and prior evictions. Being a new investor at the time I was nervous about having the house vacant while costing me money, so I was happy when someone wanted to move in within a week. I also believed the story from one about a prior eviction. It has come to burn me big time. Since then I have used a leasing agent to find me tenants. They have the time to do more thorough checks, no emotions are involved, and they just look at the hard facts. Those properties cashflow consistently. I may lease some myself now that I have learned a bit more, but one must be very skeptical.
I also use an agent. She has a good sense of people. It costs money but it's worth it.
Well yeah the money matters most because everything works on cash. She is just all about herself and taking advantage of poor people more often than not. Who would rent rather than own for themselves with rare exceptions. I can't blame her but still DAM* HER, FU*K HER SELFISH ASS!!!!!
Can you share your listing agent?
@@EVNL576 the agent I used back then is no longer serving my area. Just an FYI, I used another agent for three tenants last year. I have had to evict two and possibly the third. It's important that you vet your agent as well. Some will just get someone in to get the fee. Some will help falsify documents. I'm about to start leasing myself again. I'd suggest if you want to do the same you watch some videos from Ernie the lawyer or join a good REI group like Lifestyles Unlimited. They have excellent training even at the basic level.
i had property asking me notary letter for my grandson that mother state live with me and ask me for my son and grandson birth certificate and ssn. ask picture of my son and grandson I never ever been asked. I didn't do it. but I feel it not correct. am I correct
I have a question do I need license to
Manage my own properties??
Do you have an example of an application?
What app do you like to use for tenant screening?
Thanks for sharing!
I had to move out of the current apartment I was in because a cocaine dealer that was giving kickbacks to the current landlord threatened to have me murdered. However, I do agree that a tenant trying to pressure you into a decision is a red flag.
My tenant had poor record of on time payment. I thought I would give them a chance, but they started paying late every month right after a few months they moved in while they bought 2 new cars during the time. It never charge them 10% late fee per contract. It has become later and later. I have not received half of previous month rent yet. People way of thinking can be hard to change.
Hey I self manage since I only have a handful of properties at the moment. Do I need to have this written list provided somewhere on the listing and made public, or can I hold it in private and provide it if there are any inquiries?
I think it's whatever works best for you. I usually just list the main criteria that people don't pass on my listing and then provide them with the whole list if they ask. Some things like no prior evictions and good rental references are common sense so I don't put them on the listing itself, mainly to save space. The list is mainly a safe guard incase anyone ever claims discrimination so that you can easily show that you applied the same criteria to every applicant. I don't think you need to make it public, but you should provide it if anyone asks.
What's the minimum credit score you accept?
Would you allow a tenant to have a pet snake? I’ve always wanted a small snake because then I don’t gotta worry about a dog or cat peeing or pooping on the floor
Is that a rug on your wall? Great vid TY.
New landlord here, love your videos! Would I be correct in assuming your red flags are part of your minimum criteria for a potential renter?
Thank you and yes they are!
Great video!
So helpful, thank you! New sub here :) I am planning on renting out my first home so I've just been researching and your channel is great! For the people who applied but did not pass the criteria, do you let them know or just kinda leave it alone? Also these red flags, are they aware of them before filling out the application so they don't waste their time or....for when you mentioned that you can show them the list of things that they did not meet if they are claiming discrimination? Thank you in advance Mandy!
Thanks! Anyone who I have had direct contact with or have shown the house to I let them know that it has been rented. I also mark it rented/"sold" on the Facebook listing and on the Cozy app so that others will know. I put the red flags that make sense to add in the listing like no smoking or no pets, but generally the more you can add to the listing the better.
3times income is absolutely ridiculous
You sound really paranoid. Not that it matters but you inherit property from your parents? You sound way too young to have all these over the top requirements
@@ItsMandy do you add the red flags to the tenant lease? Also, do you use a website or provider for the tenant applications? And for the screening process?
This was very helpful, thank yiu
Hi Mandy! Your shag carpet wall!! Someone looks like an Elvis fan;-)
Thanks for the video
Great video! I’m about to buy my first rental property and I’m trying to learn as much as I can so I can make as least mistakes possible! I’m in NY and the laws changed so we can’t choose not to rent to someone based on their previous eviction history.
That's an awful law. Why would they protect people who have been evicted? That's the last thing that should be protected. Luckily you can still screen for income and credit, those factors would automatically rule out most people who have evictions on their records.
Brace yourself, if New York State passes the Good Cause Eviction legislation, it will bury many small landlords that have one or two rental properties. It will allow a problem tenant to remain on the property in perpetuity after the lease expires, unless you petition a court and get a judge's signed order.
@@ItsMandy I would assume it's to protect tenants who were wrongfully evicted by the more dubious landlords out there?
But during cov, some people didn't pay and then got evicted. NY is the most tenant friendly. I wouldn't try to screen without an agent the first time especially now. They're better off buying in a neighboring state
@@ItsMandy An eviction shows on your record regardless of the outcome in court. Even if there was a misunderstanding and the case was dismissed, or you agreed on a settlement to the landlord's liking and were allowed to continue living there with no other problems. The only information future landlords see is that someone was taken to court.
Simply being charged with a crime and actually being convicted are two different things. That's why it's unethical to automatically reject any applicant with an eviction or unlawful detainer on their record. It's not black and white.
I have a question. Should you show the property to anyone before they fill out an application? Or afterwards?
AFTER, why waste your time, or allow potential “professional squatters” any access into your home or information about yourself? Makes no sense.
yes, you can ask how many dependents are you responsible under 18. this can be part of the application.
Ask the tenant to see the last 6 months. Of rent receipt? From previous landlord. And make sure that tenant name is on the rent receipt. And not someone Else You could also call the local housing COURT. To check for previous Invictions at that address.
How do you go about income/funds verification? Do you ask for 3 pay stubs? 3 bank statements? Both?
You could ask for Paystubs if they are employed or Bank statements if they are self employed but it's difficult verifyimg the information because it can be forged or manipulated, current HIPPA laws restrict the types of information you can source.
simple arrest vs possession... Do you rent?
What about Credit score? What is your minimum credit score requirement.
fantastic advice. I am guessing you are pretty young, but your advice is really good, thanks!
Very good!
Many smokers, regardless of weather, smoke outside. Some smokers even think that smoking inside is nasty. One of my tenants had a pack of cigarettes on her counter. I told her it was a smoke free apartment. I’m hoping she’s smoking outside.
In Portland Oregon, you CAN NOT require 3 times the rent, 2 to 2 1/2 times is maximum depending on the rent.
portland sucks
Can you not ask how much their income is? how would they know thats what disqualified them?
@@Fanta....You can ask but the problem is verifying the information. It's not like you can call their place of employment and ask their boss how much they make without violating HIPPA laws.
Good Job Mandy
Very nice . I need copy’s of your lease. Go over every line of your leases. Thanks. What about late fee. How do you get money after they leave and they trash your house? I need help!
I'm going through this right now too. Probably going to end up taking them to small claims court. In my state if I win, I can garnish their wages but not all states allow that. If they don't have a job or any assets, unfortunately you probably won't ever see any money from them.
Hi there, I know landlords who do not perform tenant screening, as long as the tenant has the rent and advance. I also know landlords who perform thorough tenant screening before deciding on the right tenant, yet none of them have ever had any rental collection issues whatsoever, am I missing something valuable here? Can you please give me your thoughts, these are landlords who had no issues throughout the pandemic. Thanks for the great videos
It was just their lucky day if they didn't screen.
This is the equivalent of playing Russian Roulette for landlord.
2nd it's too stupid to be a landlord. Screening tenants is the most important part of the professional landlord's job.
@@luismangiaterra1031 Hi Luis, I certainly agree with you 100%, it is too dangerous for a landlord to not follow through with these steps
I agree with luis. Nobody plans to have an accident when they set out on their drive every day. but theyre sure glad they had the foresight to protect themselves with insurance when they run into bad luck.
Where do you find an application to send to tenants? Or did you make one youself?
She mentioned above, in response to the same question that she used Rocket Layer, as you get the first few documents for free.
What if they're living off of substantial savings, maybe they're retired and have money saved up, would that be acceptable rather than showing income?
Hi Mandy, please what are the best softwares to screen the tenants? Thank you
The only website I have used and liked is Cozy. I use it for a "pre-screening" application. It doesn't ask all the questions that I would need to know if I were to rent to them (like social security and DL #). But it asks everything I need, in order to know if they meet my rental qualifications or not. However, Cozy is now Apartments.com, my account very recently switched over so I haven't had a chance to use the application process through apartments.com yet. I've also used Avail.co, but I do not like it nearly as much as Cozy.
@@ItsMandy Why do you like cozy more than avail? What didn't you like about avail?
I have a question about proof of income. I am looking to move soon and I have my eyes on an apartment in my local area. I read that the property management company requires tenants to make 3x their income which would equate to the the rent taking up 1/3 (33 percent) of their gross monthly income. The amount that I make is slightly over the 3x income rule. The rent would take up about 37- 38% of my income. Do you think I would be able to be approved? The company does credit checks as well and I have excellent credit, no delinquencies, or eviction history. I also have a clean background with no felonies. I can also get a co-signer if necessary.
If you have over the amount that’s a good lol
You’ll be approved
@@lishab.6536 I would have to pass, I'm too smart for that, she won't fool me.
After 30years of being a landlord, I'm a walking lie detector.
37 percent isn't over the amount, it's less.
@@georgewagner7787 I read somewhere that and income of 2.5 times the rent is good enough to rent.
Do you except section 8? I'm looking at buying a property and it comes with a section 8 tenant. It's leased to the tenant until March.
Your section 8 tenant will always pay their rent otherwise they won’t continue getting the assistance. Also, section 8 does yearly inspections to make sure that the apt is in good condition, so the tenant has to take care of it.
Thank you
it’s really good one dear! How did you write lease agreement as per your choice ? Also what software you use to screen tenant for credit hx, evictions, rent hx and all you mentioned ?
I actually used Rocket Lawyer to draft a state specific lease and then I have changed it over time - mostly adding tenant responsibilities (yard, change air filter, ...) and more specific move out criteria. I only chose rocket lawyer because the first few documents are free and I'm in a very landlord friendly state. If your state is more tenant friendly it might be worth you time/money to draft the lease yourself and then have an actual attorney look it over for you.
Until a few months ago, I used Cozy to collect rent and tenant applications but cozy merged with Apartments.com so now I use Apartments.com.
What do you think of this screening process?
- [ ] Rental processing steps to expect:
- [ ] Www.mySmartmove.com
Thank you so much Mandy for the great infos on your videos.
Condos and the benefits and the negative examples expensive HOA fees monthly u don’t even see any work being done and they slam u with ridiculous assessment fees for 3 years and theirs nothing we can do . If lead I can’t be only one in this situation thanks in advance found u today randomly and honored to be here from miami , Florida
Random but guessing that’s a rug on the wall? It’s amazing vibes I can’t stop 🛑 looking
Hey I'm just curious, when it comes to eviction history, how do you go about finding that information? Wouldn't the potential tenant hide this fact?
If eviction happened, it should be in the court records.
@@gordonpolk8848 An eviction does not necessarily mean the person didn't pay rent or was late. Maybe the landlord simply wanted his place back.
Thanks for all the tips. The red flags are a big one. I see you say 3x the income but what if it is areas where income aren't as high. Do you think 2x or 2.5x is enough? TIA.
2x is not enough. Pick a pretend number and do the math. I don't earn much myself but if half my income went for rent, id be in trouble pretty quickly.
Yeah, I think that 3x income is unreasonable. I have no debt, own my car outright, and barely ever spend money. I could spend half my income on rent and be fine.
What if you're buying a property that is already 80% or more occupied?
Do you accept the screening done by the previous landlord/owner? Or, do you redo the screenings and make sure everyone meets your standards?
You are the new owner, you can terminate the original lease agreement(s) at will, but there are time constraints. Check with your local landlord/tenant hotline. You may also renegotiate the rental agreement, and do your own research on them.
Wish my husband had done that years ago when he bought an occupied apartment building in San Francisco. Only one tenant was a decent tenant. The others were absolute horrors including one who assaulted my husband (he tried to throw him down the stairs.). I can't even catalogue all the awful things they did here. He hired a lawyer but since the law was weighed heavily against landlords there was little that could be done regarding eviction. Eventually he unloaded the apartment building. Yet San Francisco has an acute shortage of rental housing. Maybe they need to look at their own laws which discourages anyone who wants to create rental housing.
You go girl preach it sistah
Only thing I disagree with here is the same day move in. I was in a situation where I moved states and was staying with a friend and told him I'd find a place within 2 weeks and it had been almost a month of sleeping on his couch so I was desperate 😂 I still made over 25x rent and had great history just nothing was decent and available until I found my last rental before buying my house.
Other than that, great info!! 😁
Then why didn’t you rent an airbnb or a long term hotel? Why move without even searching for apartments?!? That makes ZERO sense, the only case where it would is if someone was renting from a place where the landlord had an unfavorable situation, and wanted to move once their lease was up.
I like Rent Perfect for screening.