Despite Economy, Landlords Should Not Make Hasty Decisions on Renters

Faced with an empty property in this rough economy, landlords may be temped to relax their standards. Since they have monthly mortgages, taxes and other expenses, they can be desperate to get someone — anyone — in their home to pay the rent. This strategy, however, could land them a tenant who cannot pay the rent and ultimately must be evicted — which presents a greater headache than just an empty property.

Here are tips for landlords to limit their risk:

1. Lower the rent as much as possible so that at least some expenses are covered.

2. Use a reputable tenant screening company to run credit reports, criminal and eviction checks. Choose a screening company that validates and verifies rental and employment histories listed on the rental application. If landlords ease up too much, they could find a tenant unable to pay the rent. An empty apartment is less expensive than a tenant who cannot pay and will not move.

3. Sign up for rent monitoring, or electronic rent collection with the National Association of Independent Landlords, which will report monthly rent payments to national credit bureaus. Prompt payment allows tenants to build their credit; late payers will be penalized.

4. Consider co-signers for applicants who have bad credit due to high debt. Perhaps a relative will back them up as a credit reference.

5. Immediately launch eviction proceedings if rent payments lapse. Legal action can take several months, so begin at the first problem.

THE NATIONAL ASSOCIATION OF INDEPENDENT LANDLORDS:

With more than 100,000 members in 50 states, the National Association of Independent Landlords is the country’s largest provider of services for independent landlords and property managers. The National Association of Independent Landlords has offices in Los Angeles and Houston. Services include electronic rent collection, tenant screening, free rental applications, rental laws in all 50 states and other facts landlords need. President Tracey Benson has been quoted in publications including Money, The Washington Post, Los Angeles Times and New York’s Daily News. For further information, please visit http://www.landlordassociation.com or call 800.352.3395.