Tenant Screening How-To: Professional Property Management Tips in Chandler, AZ

It’s easy for rental property owners to get confused about the best way to screen tenants, and we’d like to tell you how we qualify tenants for approval on a rental at Arizona Advantage Properties. We take the prospective tenant’s completed application and use the information on it to run a credit report, a background check and an eviction check.

Collections and Late Payments

The credit report is important because it shows open accounts, including the dates those accounts or loans were opened and whether there have been any late payments. You can see how many late payments have been recorded and whether there is a collection account. Accounts in collections indicate that the person just did not pay the bill and it was sent to a debt collector. It’s usually okay if there are two or three small collection accounts. We don’t expect pristine credit from tenants but if there are several collection accounts, that’s a red flag and not someone we consider to be a desirable tenant.

Bankruptcies

There are a couple of ways to look at bankruptcies if you find that in a credit report. If the bankruptcy was several years ago and there has been perfect and clean credit since then, we are okay moving forward with that tenant. Maybe the bankruptcy was the result of a one-time situation, and the tenants have their finances under control and are being responsible with payments. If there are collection accounts after a bankruptcy then most likely that results in a denied application.

Analyzing the Credit Report

Overall we see screening tenants as a science. There are a lot of variables involved. Even with seemingly perfect credit where there are no late payments or collections, you might find a lot of debt. Then we have to compare how much they are paying per month for that debt to the amount of rent we are charging and how much they make. So the credit report requires some calculating and deciphering.

Tenant Screening How To Professional Property Management Tips in Chandler, AZWe communicate with owners what we find. All of that aside, screening for rental references and income verification also comes into play. The more complicated part, however, is looking at the reports and reading them.

We are here to help and guide our owners based on our many years of experience. If you have any questions or need some assistance, please contact us at Arizona Advantage Properties in Chandler, AZ