Selecting tenants
Category Landlord Information
Rentals is a highly regulated industry with many laws affecting lease agreements and placing certain obligations on the landlord. Making sure that your lease agreement is correctly drafted in accordance with legislation is very important.
The process of sourcing a tenant can be onerous on an owner, and the screening process of a potential tenant is one of the most important steps in renting out your property.
Vetting is the process of performing a background check on, in this circumstance, a tenant before conferring on them the right to occupy premises.
Large property companies, estate agents, and the occasional private landlord need this process to keep the bad tenants out and the paying, well-mannered ones in. Even though most legal vetting processes do not disclose the tenant's personal characteristics, shoe size and music preference they do provide an insight into the tenant's financial and credit background and therefore a tenant's tendency to skip payments or pay late. Some searches disclose whether a judgment has been taken against the tenant and what immovable property is currently registered in the tenant's name.
A simple vetting process can be a simple way to save all landlords from heartbreak and headache. Larger property companies and agents usually make use of an in-house checking process that involves multiple searches and subscriptions. For the not so advanced the enlistment of attorneys to vet and scan tenants after drafting of lease agreements has also become practice.
We cannot stress enough the importance of keeping quality tenants on the premises and keeping the bad seeds out. A vetting procedure used in conjunction with a water-tight lease and reliable and up-to-date invoicing and administration can lead the small property guppy from small fry to fundi.
Posted with the kind permission of SSLR Inc Attorneys - https://www.sslr.co.za/
Multi-level vetting of all prospective tenants empowers you, the landlord, to make an informed decision. Some of the steps involved in vetting a prospective tenant:
- Credit check
- Identity verification
- financial affordability assessment
- risk analysis
- credit profile assessment
- tenant profile assessment
- employment checks
- check references
- payment profiles
Your Chas Everitt rental specialist is trained to be able to effectively screen applicants and make a professional recommendation to you as the landlord.
Author: Selecting tenants