The connection between landlords and tenants plays an important role when it comes to managing rental properties that are already occupied. Never hurry your choice when selecting a new renter, advises the landlord. Giving the rental property to a stranger without doing a thorough assessment carries a lot of danger. Landlords need to establish a suitable screening process for conducting background checks on possible tenants in order to prevent this situation.
We have put up an important checklist with some simple steps on how to screen new tenants to help property owners and managers.
IMPORTANT STEPS FOR LANDLORDS TO CONSIDER WHEN SCREENING POTENTIAL TENANTS
Before signing the leasing agreement, go through these critical tenant screening steps.
LOOK FOR SOMEONE WITH A GOOD CREDIT SCORE.
It is preferable to examine the tenant’s credit score before shortlisting them. The tenant’s permission is necessary in the UAE to get a credit report. Furthermore, they should be prepared to offer the necessary supporting documentation.
A better credit score in the tenant credit screening often implies a history of responsible financial behavior, such as timely payments and good debt management. According to Al Etihad Credit Bureau (AECB), citizens’ credit scores range from 300 to 900. Their financial history and transaction records are completely responsible for this.
A score of 700 or more is considered good. However, if an individual’s credit report has a score of less than 600, this is cause for concern. If the tenant is unable to make rental payments or handle the rate rise financially, it may result in a rental dispute. In such cases, landlords, property managers, and even tenants can approach Dubai’s Rental Dispute Settlement Centre.
VERIFY EMPLOYMENT STATUS
This is one of the most significant stages in our tenant screening checklist. Landlords should validate a tenant’s job status and, if feasible, obtain an estimate of their average monthly income.
These procedures aid in determining the renter’s income stability in relation to the necessary income-to-rent ratio. A tenant is often expected to earn at least three times the rent amount.
Employment verification can help landlords avoid renting to tenants with an inconsistent employment history and the associated financial difficulties. This, like credit score checks, minimizes the chance of prospective rental payment troubles or defaults.
VERIFY CONDUCT AND CRIMINAL RECORDS
Another smart rental tenant screening method for landlords is to check for renters’ excellent behavior and police histories. It ensures that their rental homes are safe and secure.
A landlord or property manager might start the process by visiting their tenants’ current or prior area. They might inquire about their possible renters’ social behavior and engagement in the community.
Furthermore, if there is no rush, only consider tenants who have obtained the Rental Good Conduct Certificate. It gives further confidence that the tenant has a positive history with past property owners and managers.
In order to screen the tenant for criminal activity, request their police clearance certificate. As a landlord, be certain that the house keys are not handed away without these background checks and certifications. It is one of the most important phases in the screening process.
SOCIAL MEDIA USE
When it comes to tenant screening, landlords might benefit from using social media. Property owners obtain access to information beyond what typical screening procedures supply by investigating a potential tenant’s web presence.
Examining a person’s social media sites might help you learn about their lifestyle choices. All of this study, however, is dependent on data availability. Remember that not everyone posts about their personal experiences on social media. Furthermore, don’t take everything you read on social media as gospel, since many individuals use it for entertainment purposes only. When using social media as a tenant screening method, use caution and respect for privacy.
ATTEND IN-PERSON INTERVIEWS
Before entering into a formal agreement, landlords should meet with renters in person. This is an excellent approach to clarify issues about the use and management of rental properties. A good interview technique is required for efficient tenant screening.
Property owners and managers should create a list of interview questions for applicants to ask. The replies may be used to assess their behavioral characteristics and reactions to various situations. Furthermore, discussing all of the important issues right from the start will help establish a healthy landlord-tenant relationship in the long run.
VERIFY IF THE POTENTIAL TENANTS HAVE ANY PETS.
We feel that a question about pets should be included in your tenant screening routine. A landlord or property manager must know whether or not their prospective tenants have pets. This will allow them to plan ahead of time and make an informed decision. It is yet another important strategy for screening a potential renter.
Many landlords dislike having pets on their property. Concerns about sanitation, hygiene, and possible property damage are the primary reasons. However, whatever the pet restrictions are, they should be notified to the tenants ahead of time.
BEFOREHAND, DISCUSS THE TERMS OF THE TENANCY AGREEMENT.
The tenancy agreement is the most significant aspect of the process. Make a rental contract checklist and include all of the key rules. List and debate everything, from rental payment terms and increments to maintenance and repair obligations.
Scenarios in which early termination is required should also be considered and mutually agreed upon. In addition, review the laws and regulations for a tenancy eviction notice in Dubai and other Emirates. Make the rental contract legally precise and distribute it to prospective tenants for a thorough reading before they sign it.
That’s it – a comprehensive checklist for property owners and managers to use when screening new tenants. Before detailing the lease contract, understand about the landlord rights in Dubai and other places.
Aside from that, if you’re thinking about investing in rental real estate, you have a lot of possibilities. Browse these properties for sale in the UAE to get your property quest started on the right foot.
