Try this good advice for qualifying tenants!

The gas company was at a property I visited today and I was chatting with the technician. I discovered that he manages his mother's income properties. He told me how he has been fortunate enough to have long term tenants and he shared his secret for qualifying. It actually makes perfect sense, yet none of the property owners I spoke with have used this technique. As lots of first-time investors are taking advantage of the current market, I think you will find this useful, though you should also seek legal advice and become familiar with your local Apartment Owners' Association.

This gentleman told me that he does not base qualification solely on financial criteria. He stated that everyone has money troubles at one time or another and the current economic climate has hit everyone hard, especially homeowners who find themselves in the realm of foreclosure and bankruptcy. While there are state and federal laws governing discrimination, one should feel from the onset that there will be no problems with the new tenant. His selection follows very simple guidelines and this is as good a way as any to learn more about the person who wants to rent from you.

1. After receiving the completed application from the prospective tenant, he drives to their current home. He sees the neighborhood they are now calling home. He is looking at the pride in ownership, the condition of the home. He wants to see if they keep things neat and clean. If the neighborhood is troublesome and the applicant appears comfortable with that, he may pass on them. If the home is in poor condition, he wonders if it's their fault or the landlord's.

2. He knocks on the door. When the party answers, he discusses their application while he stealthly eyes the interior condition of the home. Even if the home has deferred maintenance no fault of the tenant, the tenant's capacity for neatness or not is undeniable with this technique.

3. In conjunction with the #1, #2, previously completed reference check and financial review, he will either confirm or deny the application then and there.

The advantage to the property owner is that with painless due diligence, he is eye-to-eye with the tenant so there can be no misunderstanding. The advantage to the prospective tenant is the knowledge that the landlord is involved and communicative.

This sounds like a win-win situation. I'd be interested in hearing how you select tenants and if you believe this process would be valuable to you.