Screening potential tenants can be extremely critical and time consuming in the rental property management process because it helps ensure that our investments are protected, ensure stable rental income, and reduce legal hassles. Good tenants are hard to find as they ensure a long-term occupancy and maintain our property well, contributing to a harmonious living environment.
There are many essential steps we can follow for screening prospective tenants that corroborate a smooth and successful rental experience. Now, let us dive into the specific steps to screen a good tenant. Before starting the advertisement for our property, it is important that we define our rental criteria that should encompass factors such as credit score, income level, rental history, and other specific property requirements. We can do the following such as:
- Make use of online platforms, classified ads, and social media to market our rental property and make sure to include comprehensive details and highlight the screening criteria in the listing.
- Request prospective tenants for a comprehensive rental application that should cover personal information, rental and employment history, income details, references, and consent for background and credit checks.
- Validate the applicant’s income through recent pay stubs, employment verification letters, or tax returns. Contact former landlords to gather insights into the applicant’s rental history.
- Validate the applicant’s eviction related issue thoroughly through National Eviction Related Report by ensuring if any had occurred during their rental history.
- Contact personal and professional references provided by the applicant to gain a deeper understanding of their character, reliability, and suitability as a tenant.
- Prioritize safety of conducting a criminal background check to confirm that the applicant does not have a history of violent or disruptive behavior. Stay mindful of local regulations governing this type of check.
- Meet in person by scheduling interviews or property showing, discussing property expectations and gauge their genuine interest.
- Review fair housing laws to ensure the screening process remains fair and non-discriminatory.
Role of Property Management in helping find good tenants:
Property management companies collaborate with property owners, establish well defined tenant screening criteria (credit score, income level, rental history, and others). Property management companies have effective systems that are collecting and reviewing hundreds and thousands of rental applications to validate personal details, rental and employment history, income documentation, references and consent for background and credit checks. These management firms can conduct in-person interviews, property showings, and assess an applicant’s suitability beyond what is documented in their application. They can evaluate demeanor, communication skills, and genuine interest in the property. Property Managers can take charge of property advertising and marketing to attract potential tenants. They must ensure that the tenant screening process adheres to fair housing regulations and avoids any form of discrimination. This commitment to legal compliance safeguards the interests of both landlords and tenants. Property managers can also provide informed recommendations to property owners regarding which applicants align best with the established screening criteria. This helps property owners make decisions based on data-driven assessments. They also oversee the collection of the security deposit once a tenant is selected, ensuring that all contractual aspects are managed correctly.
Property management companies maintain clear and professional communication with all applicants throughout the screening process. This includes promptly and notifying applicants of the outcome of their applications, fostering transparency and professionalism. After successful tenant selection, property management firms maintain an ongoing and positive relationship with tenants. They address tenant concerns, handle maintenance requests promptly, and facilitate a harmonious living environment. Property management companies leverage their expertise, resources, and systematic approaches to streamline the tenant screening process. Their involvement ensures that property owners find and retain responsible and dependable tenants, promoting a positive and mutually beneficial rental experience.
Issues and challenges of Tenant:
Tenants may encounter a range of challenges during their rental experience, from property maintenance and frequent rent increases to security deposit disputes, privacy concerns, and noisy neighbors. Lease violations, safety issues, pest infestations, and discriminatory treatment can also pose significant issues. Addressing these concerns effectively requires open communication, adherence to lease terms, and awareness of rights and responsibilities on both sides. It is essential for landlords to maintain properties in good condition, follow legal rent increase guidelines, respect tenant privacy, and address safety and pest issues promptly. Discrimination is prohibited under fair housing laws. In cases of disputes or eviction proceedings, following legal procedures is crucial, and tenants should be informed of their rights. Uncertainty regarding lease renewals can also be a source of stress for tenants. Ultimately, resolving these issues amicably often involves dialogue and, if necessary, seeking legal guidance to ensure a positive and fair rental experience for all parties involved.
To address these issues effectively, it is important for both landlords and tenants to maintain open lines of communication, adhere to the terms of the lease agreement, and be aware of their rights and responsibilities. When conflicts arise, discussing concerns and, if necessary, seeking legal advice can help resolve issues amicably (in a peaceful manner).
A growing problem of tenants in the Czech Republic?
Apartments in the Czech Republic have become 67% more expensive on average since 2015, outpacing most EU countries. This robust demand for real estate can be attributed to the economic prosperity between 2014 and 2019, which saw a notable increase in the purchasing power of the population. Prague particularly has become more integrated into the global real estate market.
The Czech Republic experienced the fastest growth in real estate prices compared to other EU countries from late 2016 to the third quarter of 2017. This surge in prices, particularly in the second quarter of 2017, significantly outpaced the EU average. Even if property prices were to stall for the rest of the year, they would remain higher than the previous year.
In the Czech Republic, a growing problem for tenants is the surging property prices and the associated challenges with affordability and rental costs. Since the first quarter of 2021, the citizens of Czech Republic witnessed a remarkable 11.9% year-on-year increase in property prices, making it the fourth-highest growth rate in the European Union during that period. What’s concerning is that this inflationary trend shows no signs of immediate cessation in the Czech real estate market, despite the COVID-19 pandemic and economic downturn.
This upward trend in real estate prices reflects the Czech Republic’s long-term macroeconomic convergence with wealthier EU states, and experts expect this process to continue. While this growth may benefit property owners, it poses challenges for tenants, particularly in terms of affordability and rental costs.
References:
- A. Reosti, “‘We go subjective’: discretion, discrimination, and tenant screening in a landlord’s market,” Law and Social Inquiry-journal of the American Bar Foundation, vol. 45, no. 3, pp. 618–657, Feb. 2020, doi: 10.1017/lsi.2019.81.
- E. R. Power and C. Gillon, “Performing the ‘good tenant,’” Housing Studies, vol. 37, no. 3, pp. 459–482, Sep. 2020, doi: 10.1080/02673037.2020.1813260.
- Tas, R.F., LaBrecque, S.V. and Clayton, H.R., 1996. Property-management competencies for management trainees. Cornell Hotel and Restaurant Administration Quarterly, 37(4), pp.90-96.
- Czech Real Estate Market View, Marie Baláčová: https://www.cushmanwakefield.com/cs-cz/czech-republic/insights/covid-19-impacts-czech-real-estate
- New Apartments Are Becoming Cheaper, Yet Nobody is Buying. Are we Facing a New Crisis? https://praguemonitor.com/czechia/22/06/2023/new-apartments-are-becoming-cheaper-yet-nobody-is-buying-are-we-facing-a-new-crisis/
- Czechia’s housing crisis is pushing more people into renting https://www.expats.cz/czech-news/article/high-property-prices-in-czechia-pushing-more-families-into-renting
- The Czech housing market has a historically owner-dominated structure.
- Housing affordability in cities in the Czech Republic. 2021.