Managing Financial Verification for Prospective Tenants

Summary: Ensuring that your prospective tenants will pay on time can be done through a series of verification steps.

An important, if not the most important, aspect of being a landlord is verifying your prospective tenants’ income. And, let’s say you’re running an apartment complex and are caring for dozens of tenants, you may become overwhelmed by financial difficulties if you don’t properly take the necessary verification steps. This can be easily done through tenant verification services. However, there are other steps that you must take to make sure that you’re letting the right tenant in.

The Initial “Meet and Greet”

When searching for tenants, the first thing that you’ll want to do is advertise your property. However, don’t seem desperate and be vague with your descriptions. You have qualities that you want in a tenant and you obviously don’t want someone that can’t afford to pay you on a monthly basis. Be sure that you start by asking applicants on the initial phone call whether or not they can meet all the financial requirements that you have set on your property. Don’t waste your time with “maybe” or “I’ll have to get back to you”. Be straight to the point, because there are other tenants that could be a much better suitor than the one you’re currently talking to.

The Rental Application

Interested prospects need to fill out a completed rental application and turn it into you as soon as possible. Inside this application is a section where the applicant must write their income information and be willing to subject themselves to the landlord contacting the employer if necessary. Once they agree, you’ll want to ask the applicant to supply proof of their income through pay stubs. Don’t just take the last pay stub, ask for at least three months. Or, the applicant can provide you with their tax return information, which will give you an overall summary of how much they’re making. Be sure that you protect the privacy of this information as it is sensitive information.

If Necessary…

You may need to contact the prospect’s income if the background checks aren’t exactly matching up with what they’re telling you. The applicant needs to put down their employer and his or her contact information. The process is simple. If necessary, contact the employer and verify that they are making exactly what they said they are. This isn’t recommended for every prospect, only ones that you need to verify through further validation methods.

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