Blog Post

Evaluate a Rental Application

Dustin Edwards • January 27, 2020

4 Items to Evaluate on a Rental Application

Rental Application Analysis
Leveraging the power of the internet it is easy to find a rental application. Or even if you don’t want to do that you could go into a Staples or Office Depot and pick up a packet of “Rental and Credit Check”. If you review the forms from a few different sources you will notice that each of them are pretty similar in nature. Of course, if each rental application is nearly the same how can it be so challenging to find the right tenant?

Part of the challenge is that a rental application is like any job application. While the form remains the same for all candidates each potential candidate provides different information. The key is which information provided is going to result in the best possible tenant for your property?

Common Items on an Application

While there are many fields on an application there are a few that often draw the attention of property owners and property managers. To help you get started in evaluating a rental application consider a small sample of the following questions:
  • Pets (Y/N)?
  • Current Smoker (Y/N)?
  • Bankruptcy (Y/N)?
  • Income
Pets on an Application
Allowing pets in your Long Beach rental is an important decision. Pets are one of the most common forms of damage to a property. Of course, what if the pet they have is a hamster? Or even 3 gold fish? When property owners often envision pets they think of the worst case scenario like an animal busting up drywall but that isn’t necessarily the case. Ask the prospective renter what pets they currently have and even if they are planning on expanding their pet family to understand if that is a challenge in their application.

Current Smoker
Smoking provides a few challenges to a property. One of the first challenges, that is often overlooked, is that of being a fire hazard. Improper disposal of a cigarette could cause even something as mundane as garbage to catch on fire and cause damage. The other damage is that of the odor as it can get into drywall and carpeting making it challenging for future renters who aren’t smokers. Of course with these challenges does this mean you don’t rent to smokers? What if they only smoke outside? What if they count “vaping” as a type of smoking? What if they are chewing nicotine gum? Take time to understand the true habits of the prospective renter to see if it is a match for you and the property.

Bankruptcy
In life few have escaped without some financial challenge. Simply because someone has had a bankruptcy in their past certainly shouldn’t eliminate them from your pool of valid applicants. Find out more about the bankruptcy to determine when it occurred. Was there a particular reason it occurred? (i.e. maybe it was in a tough economic downturn). Understanding the full story of the bankruptcy can help you to determine if this is the right renter for your home.

Income
We invite you to consider evaluating income much like a lender would evaluate income when buying a property. Someone might be willing to pay $2,800 a month in rent but if their declared income is $3,800 then that could pose a challenge. When a bank evaluates a home buyer they traditionally like to keep the mortgage payment at <45% of the monthly gross income of the applicants. As you evaluate each rental application set a rule of percentage of rent vs. gross income and evaluate each application with that same rule in mind.

Evaluating Every Part of a Rental Application
The above are just four areas of consideration to evaluate when you are reviewing rental applications for your Long Beach rental. At Beach Cities Property Management we dive into every aspect of a rental application. In addition to our expertise we leverage technology throughout the property management process. From evaluating rental applications to taking payments. During the application process we implement advanced screening methods that keep us within compliance of Fair Housing Laws and help us to identify the best possible tenant for your property. When you want to find out more about how we evaluate rental applications please call us today at (562) 888-0247.

To help you see how those rental applications can transform into value for your specific property in Long Beach we invite you to fill out our free rental analysis form.

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By Dustin Edwards December 19, 2024
If you're properties are suffering from lack of heating this winter, these 3 common issues could be the cause.
By Dustin Edwards December 12, 2024
Although Southern California’s winters are typically mild when compared to other parts of the country, tenants still value a warm home during the cooler months. Taking steps to maintain a comfortable living environment shows your tenants that their needs are being prioritized. This is crucial for tenant satisfaction, especially during the holidays. Below are three methods to help keep tenants warm during the winter season. Maintain Heating System It's required for landlords to provide rentals with a working heating system, however, it's not uncommon for these to fall into disrepair either because of lack of maintenance or negligence. Scheduling regular inspections and maintenance before the coldest weather can help to ensure the heating is reliable and efficient. Cleaning air filters, and checking for cold spots, or irregular noises can help prevent small issues from escalating into expensive repairs. Preventative maintenance can help to reduce the chances of inconvenient calls for emergency repairs. Being proactive with your maintenance can also help you protect your investment while earning goodwill from your tenant. Another factor that can affect your heating system is drafts around windows and doors. These drafts can cause your heating system to overwork which makes the system less efficient, and reliable and ultimately reduces the lifespan of your heating system. You can address this by inspecting the seals around doors and windows for gaps or cold spots. Replace worn-out seals and caulking where it's needed. Offer Smart Thermostats Consider providing your tenants with a smart thermostat for energy-efficient heating. This can not only give tenants control over their comfort, but it's also a great tool to reduce energy usage. By providing this upgrade to your tenant, you show a commitment to your tenant’s satisfaction which can in turn result in a long-term tenant. These kinds of devices definitely benefit your tenants, though they can also contribute to the longevity of your rental property as well. Additionally, you can give your tenant a smart thermostat as a holiday gift . This can show your tenant that you’re not simply collecting rent while protecting your investment. Reverse Ceiling Fans The direction in which a ceiling fan rotates is oftentimes overlooked, and it can have a great effect on the temperature of a home. A ceiling fan is typically seen as a way to cool down a home during the hotter seasons without using the air conditioning . Reversing the spin of a ceiling fan can help to circulate warm air more efficiently during the cold season . This is because warm air rises, and a fan rotating clockwise will push the warm air back down helping maintain warm temperatures. Most fans have a switch on the motor and it is easily accessible for most people with a step ladder. This easy adjustment helps reduce the need for your tenant to use the heating system. Tenants will notice a more consistent and comfortable temperature indoors. This should also help reduce costs on their energy bill. Reversing the rotation of the ceiling fans also takes some of the strain off of the heating system. This helps to ensure it operates efficiently for years by reducing the wear and tear on it. Taking proactive steps this winter season to ensure your tenant’s comfort demonstrates a landlord’s commitment to their tenant’s comfort. A comfortable tenant is a satisfied tenant , which can lead to a long-term tenant and steady rental income. Consider it a small investment for long-term success. If you need help keeping your rental warm or managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
By Dustin Edwards December 5, 2024
Discover 3 Gift Ideas for your tenants this holiday season.
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