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Landlord
Rental application - learn your tenants right from there
By
Apr 13, 2006, 14:32


The rental application form offers a number of useful features, including the following nine important items of information:

1. Proper identification. Be suspicious if an applicant will not provide you with the basic identification numbers and name of a local bank where he or she has an account If an applicant does not want to provide you with that much detail, you may want to concentrate on other applicants.

2. Name and phone number. Always request both home and work numbers, to enable you to reach your tenants during day or evening. Plan to verify employment and earnings by telephoning employers and asking if the information is correct.

3. Present home address, length of time there, and current landlord's name and phone number. Do not allow anyone to skip this information, without exception. Always check current references to verify that the tenant is living there. Ask if rent has been paid on time, and if the tenant keeps the property and grounds clean and is cooperative.

4. Previous home address, length of time there, and previous landlord's name and phone number. The previous information is more important than current information. Make sure you can contact the previous landlord, and ask the same questions. The previous landlord has no incentive to mislead you about the individual applying for your vacancy. Ask:
• Was rent always paid on time? If late, how late and what reasons were given?
• Was the person tidy?
• Was the vacated property left clean?
• Would you recommend the individual? If not, why not?

5. Name and phone number of nearest relative and person to contact in case of an emergency. You need this information for your files, for several reasons. If a tenant skips out on you, it is useful to have a relatives name. II a tenant breaks the law or takes property from your rental when vacating, you can put law enforcement officials m touch with relatives to track down the ex-tenant. In addition, you might become suspicious if the applicant is unable to provide you with the names and phone numbers of relatives or friends.

6. Name and relationship of every person who live at the address. You will need to screen families groups too large for the property. While you cannot legally discriminate against people with children, you do have the right not to rent to a seven-member family when all you have is a studio apartment. If you later discover that there are more people living at the property than were listed on the application, you can enforce your restriction on having too many people there. 

7. Description of pets, if any. Depending on the kind of property involved, pets might be allowed, or they might eliminate a tenant. This question also depends on the kind of pet. While an indoor, neutered cat presents few obvious problems, a large outside dog is distinctly a problem in a dense neighborhood; and even an indoor dog will cause wear and tear on carpets. You might allow pets but require additional security deposits; or you might decide—like most landlords—to strictly forbid cats and dogs. Be aware of the need to establish rules and enforce them. Some tenants will acquire pets after moving in, and this is a problem. If you have failed to specifically forbid pets and if 
you don't have enough of a security deposit, those pets could cost hundreds of dollars when the tenant moves out. This concern is not limited to carpet-related problems. A large outside dog can completely ruin a lawn in a short time, for example. The problems can be serious, not to mention the noise disturbance to all of your tenant's neighbors.

8. Occupation. You should be very interested in knowing whether the tenant is employed. Always verify dates of employment and salary that are reported to you on the application. Insist on getting the work telephone number. Be realistic, because some would-be tenants are not very realistic. If they make such a small amount of money that rent will represent half their take-home pay, they simply cannot afford to rent your property. By accepting such an applicant, you invite trouble.

A special problem arises with applicants claiming to be self-employed. Certainly, the status itself is not the problem, but verifying the information is virtually impossible. Many self-employed people exaggerate their income level; some unemployed people will describe themselves as self-employed in order to get through your screening process. Some suggestions when dealing with applicants who are self-employed;

• Ask for a business card. A legitimate self-employed person will normally have a business card, a letterhead, and a company identity.
• Ask for customer references, and check them out. Make sure there is an actual business, which requires customers.
• Ask for identification of not only a personal bank account, but a business account as well. Most legitimate business owners maintain completely separate records for personal and business transactions.

If the applicant in unable to provide these to you, chances are high that he or she is not really self-employed. It is not enough for you as 3 landlord to accept a tenant on the basis of a hobby or on the basis that the person is thinking of starting a business.

9. Signature. Insist that applicants sign the application form. The application should be thought of as pan of the rental agreement, since you will enter that agreement based on what is claimed on the application. The application is handy in several ways. As you check out references, put notes on the form itself. If you run into problems later on, you can refer back to the original application to support your arguments or to identify inconsistencies.

The best screening device of all is the tenant who refuses to fill out an application. Many landlords don't even have an application blank and don't check references, so they tend to have the worst experiences with tenants. They end up, by default, getting those tenants that more cautious landlords reject. (Unfortunately, even when you check references thoroughly, you may still end up 
with some tenant problems.) The application documents information and eliminates some problems, increasing your chances for having good relationships with your tenants.



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