Are you still unsure about renting your property in Lake Havasu City, AZ?
Here's a good enough reason to push through: Landlords here make an average of $53,032 yearly, according to Salary.com. Top earners even take home nearly 62 grand a year!
However, you must carefully select who to rent out to, as your rental income will depend on it. To do this, you must conduct a comprehensive tenant background check, which includes:
- Credit checks
- Income or employment checks
- Criminal background checks
- Rental history checks
The experts here at Arizona Living Rentals & Property Management will explain each in more detail, so read on.
Credit Checks
According to Experian, the average credit score in Arizona was 713 in 2023. It falls within the "good" range of 670 to 739, so your prospective tenants' scores should at least be within this range. However, it's even better if their scores are "very good" (740 to 799) or "exceptional" (800 to 850).
You want your tenants to have a high credit score, as it indicates they:
- Pay their financial dues (e.g., loans and credit cards) on time
- Manage their debt wisely
- Haven't defaulted on loans
- Have no accounts in collections
A credit check can help you discover all those crucial details, so it's best to include one in your tenant screening process.
Income or Employment Checks
Your rental application checks should always include verifying all prospective tenants' income or employment status. Doing so can help you determine if they earn enough to pay rent.
You can use the following documents to get a snapshot of your potential renters' income or employment:
- Pay stubs
- W-2 tax forms
- A signed certificate of employment
- Yearly tax returns
- Bank statements
You can call employers for further verification, but ensure you get consent from the applicants first.
Criminal Background Checks
The last thing you want is to rent to someone who can put your property, other tenants, and neighborhood in harm's way, so please don't ever skip tenant criminal background verification. With this, you can determine if a prospective applicant has a history of committing severe or dangerous crimes. If they have recent convictions for violent crimes or felonies, take those as a red flag and move on to more qualified applicants.
Rental History Checks
Your rental application process should include asking applicants about their rental history. Request at least three previous rental addresses and the landlords' contact information.
Call each of the previous landlords and ask them the following:
- Did the tenant always pay on time?
- Have they ever broken any part of the lease?
- Did they leave the property in good condition?
- Would you consider renting to them again?
As you can see, the previous landlords' answers will give you insights into tenants' behaviors as renters. Use them as additional tools to gauge whether to rent to an applicant.
Consider Outsourcing Your Tenant Background Check Process
As vital as a comprehensive tenant background check process is, it's time-consuming and complex, especially for first-time or new landlords.
Arizona Living Rentals & Property Management can take over if you'd rather not deal with those complexities. As a full-service property management provider, we can handle marketing and tenant screening, rent collection, and maintenance for your Lake Havasu City rental property.
So, speak with us today. We'll even throw in a free property consultation!
