Screening a prospective tenant is more important now than ever. With the current economic climate, more people have credit ratings that fall into a gray area compared to just a few years ago. Job losses and foreclosure rates are painfully high. FICO scores are dropping for many Americans, making finding a tenant with squeaky clean credit much more difficult.
I always look at this issue from the angle of collecting or preventing tenant debt. By properly screening a tenant, you can greatly reduce the risk that the tenant will move out owing you money. Tenant debt will always be a problem for landlords, and while you can’t eliminate it, you can certainly reduce the possibility of it occurring.
The key to screening in this economy is separating the tenants who Read the rest of this entry »