Rental Applications 101
After initial contact is made with a potential tenant and the vacant house or apartment is shown, if the prospect then indicates interest in a rental, the next step for a landlord or property manager is to provide the prospect with a rental application. The purpose of a rental application is to enable the landlord or property management company to make good decisions about potential tenants by collecting as much relevant information as possible to assist in the screening process. Rental applications allow landlords to evaluate prospects based on creditworthiness, employment history, references, and other information a property manager can use to determine how reliable a tenant is likely to be in the future. It is important to collect as much information as possible not only to aid in evaluating a candidate but also because you may need to refer back to it if a dispute arises or you have to locate the tenant after the lease expires.
Items required on rental applications usually include all of the following:
- Full Legal Name
- Name of Spouse
- Dependents
- Social Security Number
- Date of Birth
- Current Address
- Prior Address
- Income
- Employment History
- Credit References
- Personal References
- Emergency Contact Information
Applications may also include fields to collect other details such as pets or vehicle information if a pet policy or parking space is involved. In addition, a number of yes or no questions with check boxes are sometimes included as well as a space for the applicant to add notes or additional information. Questions might include:
- Have you ever declared bankruptcy?
- Have you ever been convicted of a felony?
- Have you ever been evicted or taken to court by a landlord?
Applications should also include a signature block and language clearly disclosing that by signing, an applicant is authorizing the landlord or property manager to obtain credit, employment, banking and background information for the purpose of evaluating the application.
Upon receipt of an application, you will want to make sure that it is filled out completely. It is also a good idea to ask for photo identification so you know that applicant is presenting his or her own information. You must also take great care to protect the privacy of the applicant and compy with privacy regulations as businesses can be held liable for consumer identity theft. Treat the application as if it were your own. Secure your completed applications and limit access to them. Shred any form with personal information before throwing it away.
Requiring a completed rental application from all prospective tenants and applying the same criteria for screening tenants every time in evaluating applicants is vital to filling your vacant apartments or homes with suitable, quality tenants. Make sure your rental application form collects all the data you need to make informed decisions. While a good rental application form cannot guarantee complete protection from problem tenants, the rental app is a vital component of being a successful landlord or property manager.
