Episode 72:Using Local Co-Signer: How to Rent to a First-Time Tenant
Summary
Tenant screening can be one of the scariest parts of managing rentals. Screening tenants who have never been tenants before can be even more scary and confusing! How do you include a co-signer? In today's show we discuss an overview of the tenant qualification process for a first-time tenant, and how to include a local, responsible co-signer. We also delve into how to utilize credit checks for potential tenants in both the US and Canada.
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Hey there, Dr. Jen here! In today's episode, I'll guide you through renting to first-time tenants with the help of a local co-signer. Let's cover prequalification, screening, and lease creation to ensure the process is smooth for both tenants and landlords.
Tenant Prequalification and Screening
Initial Application
Begin with a prequalification form, where you can assess basic information and spot any potential deal-breakers, like smoking or overcrowding. If the tenant lacks a rental history, require a responsible local adult to act as a co-signer. Make sure to gather necessary documents like government-issued ID, pay stubs, and credit reports from both the tenant and the co-signer.
The Showing
If there are no deal-breakers, arrange a property showing. Both the potential tenant and co-signer should attend to ensure the property suits their needs.
Final Qualification and Lease Creation
Due Diligence
After the showing, request any additional documents needed and conduct a thorough credit check. This is crucial to confirm the tenant's financial reliability and the co-signer's ability to back them up.
Lease Agreement
Create the lease agreement, listing the tenant and the co-signer, explicitly stating that the co-signer will not occupy the property. Ensure the lease and addendum include the list of approved occupants to avoid unauthorized tenants.
Moving Forward
In a tight housing market, it's essential to act quickly but thoroughly. For more resources and to get answers to your questions, check out mylifeasalandlord.com, where you can also find a "Holler" to connect with me directly. Join me next time for Episode 73 with Frank Rohde from Unify!