When it comes to maintaining occupied rental properties, the connection between landlords and tenants is critical. Property owners should never hurry into a new tenant selection. Handing over the rental property to a stranger without thorough examination might be dangerous. To avoid this problem, landlords should create an effective screening procedure for doing background checks on new renters.
To assist property owners and managers, we have created a must-have checklist of easy-to-follow actions for screening new tenants.
HOW TO SCREEN POTENTIAL TENANTS: IMPORTANT STEPS LANDLORDS SHOULD TAKE
Follow these important tenant screening processes before signing the lease.
SEARCH FOR SOMEONE WITH A GOOD CREDIT SCORE.
Check the tenant’s credit score before shortlisting them. The tenant’s permission is necessary in the UAE to obtain a credit report. They should also be prepared to submit the necessary supporting documentation.
A better credit score in the tenant credit screening often implies a history of responsible financial behavior, such as on-time payments and good debt management. According to Al Etihad Credit Bureau (AECB), citizens’ credit scores range between 300 and 900. This is solely dependent on their financial history and transaction data.
It is deemed good if the score is more than 700. However, it is troubling if an individual’s credit report has a score of less than 600. Rent conflicts may arise if the tenant is unable to make monthly payments or handle the rate increase financially. In such cases, landlords, property managers, and even tenants can call the Rental Dispute Settlement Centre in Dubai.
EMPLOYMENT STATUS CHECK
This is one of the most important tasks in our checklist for screening tenants. Landlords should validate a tenant’s job status and, if feasible, determine their typical monthly income.
These stages assist in determining the renter’s income stability in relation to the necessary income-to-rent ratio. A tenant is required to earn at least three times the rent amount.
Verifying a tenant’s employment history might help landlords avoid renting to tenants who have a shaky employment history and the resulting financial difficulties. Similar to credit score checks, this lessens the possibility of future problems with or delays on rental payments. However, if such problems occur, here’s how a Dubai landlord could file a rental-related dispute.
CHECK FOR CRIMINAL AND CONDUCT RECORDS
Checking for renters’ excellent behavior and police records is another wise rental tenant screening strategy for landlords. It assures the safety and security of their rental homes.
To get things started, a landlord or property manager might pay a visit to their renters’ current or prior area. They might inquire in the area about the social behavior and engagement of their potential renters.
Furthermore, if there is no time limitation, only consider tenants who have obtained the Rental Good Conduct Certificate. It gives further confidence that the tenant has a strong track record with past property owners and managers.
To screen the tenant for criminal activity, request their police clearance certificate. As a landlord, make careful not to hand away the house keys without these background checks and certifications. It is one of the most important processes in screening tenants.
USE SOCIAL MEDIA
When it comes to tenant screening, landlords may benefit from social media as well. Property owners obtain access to information that standard screening procedures do not supply by investigating a possible tenant’s web presence.
Examining a person’s social media profiles might be an excellent approach to learn about their lifestyle preferences. All of this study, however, is dependent on the availability of data. Remember that not everyone posts about their personal experiences on the internet. Furthermore, don’t take everything you read on social media as gospel, as many individuals use it for entertainment only. When using social media as a tenant screening method, use caution and respect for privacy.
GO FOR IN-PERSON INTERVIEWS
Before entering into a formal arrangement, landlords should meet with renters face to face. This is a wonderful approach to explain issues about the use and administration of rental properties. For efficient tenant screening, an effective interview technique is required.
Property owners and managers should create a list of interview questions to ask applicants. The replies may be used to assess their behavioral traits and reactions to various situations. Furthermore, discussing all of the important issues right from the start will help preserve a good landlord-tenant relationship in the long run.
CHECK TO SEE IF THE POTENTIAL TENANTS HAVE ANY PETS.
We feel it is critical to include a question about pets on your tenant screening process. A landlord or property manager must be aware of whether or not their prospective tenants have pets. This will allow them to plan properly and make an educated decision. It is yet another helpful strategy for screening a potential renter.
Many landlords do not want dogs on their property. It is mostly due to worries about sanitation, hygiene, and potential property damage. However, whatever the pet regulations are, they should be conveyed to the renters in advance.
TALK ABOUT THE TERMS OF THE TENANCY AGREEMENT AHEAD OF TIME.
The most crucial aspect is now the tenancy agreement. Make a rental contract checklist and include all of the relevant provisions on it. List and debate everything, from rental payment terms and increments to managing maintenance and repair obligations.
Scenarios in which early termination becomes required should also be considered and mutually agreed upon. Additionally, review the rules and regulations for a tenancy eviction notice in Dubai and other Emirates. Make the rental contract legally precise and provide it to prospective tenants for a full read before they sign it.
There you have it – a comprehensive checklist for property owners and managers to use when screening new renters. Before detailing the rental contract, understand about landlord rights in Dubai and other places.
Aside from that, if you want to invest in rental real estate, you have a lot of possibilities. Browse these properties for sale in the UAE to get your property search started on the right foot.
