by Francis Jock

Created on: February 14, 2008

If we were lucky enough every potential renter would come with a sign attached. It might be a good sign: Pleasant Skies and Smooth Sailing. Or it could be a warning sign: Beware of Bad Renter. But, unfortunately for Property Managers, people don't come with signs attached, they only come with applications.

Here are ten important areas for you to consider when reviewing a new application. You can probably add a few more based on your own experience, but these should serve as a starting point for those of us without years of experience in Property Management.

1. The first place to begin is with a credit check. Credit checks reveal much more than a credit score, which is important to mostly to lenders. What you are looking for is payment history, late payments, and amount of debt. Be sure to run credit checks for every adult listed on the application. Other key indicators on the credit report include bankruptcy and court ordered judgments.

2. Next, complete a landlord reference check. Placing a call to the applicant's present landlord will always be worth the time and effort. They have first hand experience with the applicant and will be able to answer questions about the applicant's rental history, such as paying on time, getting along with neighbors, housekeeping, damages, and whether or not they would be willing to rent to them again.

3. Criminal Background Checks should be conducted after the credit and landlord check. It's always a good idea to run an inter-state criminal background check. Watch out for sex offender status. These checks are relatively inexpensive and easily accomplished through services listed on the Interned. Either of these could be grounds for an automatic rejection.

4. Home visits are optional, but can be very useful. If you make a home visit, the obvious is revealed and should be documented. You may need this information when discussing the applicant suitability with the current landlord.

5. Vehicle ownership may sound a bit over the top but can be an important indicator. Do the vehicle's type, make and model reflect the character of the applicant? Does the type of vehicle fit the income level and family composition? Is the vehicle so old that it is likely to need expensive repairs? Is the vehicle necessary for their employment? What happens if it breaks down? These questions are more clues than hard indicators, but asking a few questions about the family vehicle might reveal something important, such as undisclosed income or debt burden.

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