Screening tenants is one of the most critical tasks for landlords. Proper screening helps protect rental investments by ensuring that tenants are reliable, financially stable, and responsible. BetterLandlord simplifies this process by providing a comprehensive tenant screening checklist to request and organize essential documents.
Here are the top ten documents that every landlord should request from tenants, highlighting the five main ones BetterLandlord suggests:
Credit Report
A credit report offers a snapshot of an applicant’s financial habits and creditworthiness. It includes information on their credit history, current debts, and payment history. By reviewing a tenant’s credit report, landlords can gauge their financial responsibility and likelihood of paying rent on time.
Income Verification
Confirming that a potential tenant has a steady income is crucial for ensuring they can comfortably cover the rent. Income verification can be done by requesting recent pay stubs, bank statements, or tax returns. This step helps landlords avoid tenants who may struggle to make timely payments.
Employment Verification Letter
An employment verification letter provides additional assurance of a tenant’s job stability. This letter, typically provided by the tenant’s employer, confirms their position, length of employment, and salary. Stable employment suggests a reliable rental relationship, reducing the risk of missed payments.
Current Landlord Reference Letter
A reference letter from the current landlord can offer valuable insights into the applicant’s behavior and reliability as a tenant. It can reveal whether the tenant pays rent on time, takes care of the property, and follows lease terms. Positive feedback from the current landlord is a good indicator of a dependable tenant.
Previous Landlord Reference Letter
In addition to the current landlord, a reference letter from a previous landlord can provide a broader view of the tenant’s rental history. It helps confirm the applicant’s long-term reliability and consistency. Consistent positive references from past landlords indicate a solid rental history and responsible behaviour.
One more thing…
One other piece of documentation that landlord’s should consider is the photo identification of the tenants. It is important to have the applicant’s (and co-applicants) name recorded in the lease application and in any other forms related to the rental application. However, as a landlord, you must treat all prospective tenants equally and not discriminate based on characteristics protected under the Human Rights Code.
By requesting these essential documents, landlords can make informed decisions and minimize the risk of problematic tenants. Betterlandlord’s tenant screening checklist ensures that landlords never miss a crucial document, streamlining the tenant screening process and providing a comprehensive approach to evaluating potential renters. With the right information, landlords can confidently place tenants and protect their rental investments.