Interviewing Prospective Tenants
Deciding who to rent a property out to can be a daunting process and making the wrong decision can have far-reaching consequences. While financial screening can help to inform the decision, interviewing prospective tenants is invaluable.
Conducting a comprehensive interview will give insight into a tenant’s personal circumstances and help to identify those who are more likely to look after the property and pay their rent on time. This guide covers all the basics of interviewing prospective tenants for real estate.
Preparation
When interviewing prospective tenants for real estate, preparation is key. You’ll need to be familiar with the legal framework of renting out a property and the tenant’s rights. This will ensure that you avoid any potential issues of discrimination or breach of regulations.
It’s also a good idea to prepare a list of questions ahead of time. Consider putting together a list of basic questions about the rental application and their circumstances. You should also have a list of more freeform questions allowing you to get to know the tenant better and figure out if they are a good fit.
The Interview Process
When conducting the interview, aim to create a relaxed, friendly atmosphere. Keep in mind that this is a two-way process; the tenant should have the chance to ask any and all questions they have.
Be sure to document any information verbal agreements during the interview process and ensure that both parties are aware of any expectations or specifics that are discussed. This will help to avoid any misunderstandings should the tenancy become more complicated later on.
Once the interview is complete and you have all the information you need, take some time to consider what you have found out about the tenant before making a decision.
Questions to Ask
When interviewing prospective tenants for real estate, be sure to ask questions that will give you a good understanding of the tenant’s circumstances. Some good questions you might want to ask include:
- What motivated you to move?
- How many people will be living in the property?
- What is your current employment situation?
- Do you have any pets?
- How long do you anticipate living in the property?
- Do you smoke?
- Do you have any references from previous landlords?
- Have you ever been evicted?
- Can you provide a security deposit?
These questions should give an indication of the tenant’s financial circumstances, lifestyle, and attitude towards renting.
Financial Screening
Financial screening is an important part of the process when interviewing prospective tenants for real estate. The most common forms of financial screening are checking credit reports, verifying income and speaking to previous landlords.
Verifying income is a good way to develop assurance that the tenant is able to pay rent. This can be done with payslips, tax returns, or bank statements.
Credit reports provide a useful insight into the financial history of a tenant. This should always be conducted in compliance with data protection and relevant tenancy laws.
If possible, contact the previous landlord of potential tenants; they may provide additional insight into a tenant’s rental history or other pertinent information.
Making a Decision
Once you have taken the time to consider all the information you have gathered during the interview process and financial screening, it’s time to make a decision.
Your decision should be based on a combination of the following:
- The tenant’s attitude during the interview
- Verification of their income
- The credit report
- References from previous landlords
- Your gut feeling
Ultimately, the most important consideration is whether you’re confident in the tenant’s ability to pay their rent on time and maintain the property.
Tips for Interviewing Prospective Tenants for Real Estate
- Be organized and prepared
- Get to know the potential tenant by asking relevant and thoughtful questions
- Do a financial screening and ensure compliance with data protection and tenancy laws
- Take your time to make a decision
Interviewing prospective tenants for real estate is an important step in the process of renting out a property. It should always be conducted in compliance with legal requirements and with the aim of finding the right tenant for the property. By following this guide, you’ll be well on your way to finding the best tenant for your investment.
