How to vet your tenants before showing a rental

Finding good tenants starts with the first call from a prospective renter.

By Kathryn K. Eaton  |  Clinical Assistant Professor of Marketing

I have had all manner of tenants in the past, good and bad. With experience, I have developed a successful application process that helps me to find the best possible tenants. I start with the very first phone call from a prospective tenant. When a prospective tenant first calls because they are interested in the property, it's exciting and tempting to schedule a showing right away. I have learned to resist that urge.

It's worth getting a little more information to make sure the showing won't be a waste of time for either of you. The first question I ask renters is why they are moving. Some red flags can surface here, like if they are being evicted. If a tenant complains about his or her landlord, you should make a mental note.

Once, I had a prospective tenant who complained about the landlord not making necessary repairs. Later, when I called the landlord as a reference, I mentioned what the tenant had said. Did I get an earful! The previous landlord gave me a detailed account of how the tenants had trashed the property and were refusing to repair the damage that they had caused. Needless to say, I did not rent to them. Generally, you want the reason for the move to be innocuous, such as looking for more space for the family, or wanting to live closer to work.

Next, I ask the potential tenants when they plan to move. Normally, tenants will be looking a few weeks to a month in advance of the move. If you have renters who need a place immediately, it could be a red flag. Do they need a place right away because they've been evicted? An immediate move might not necessarily be bad, however. I had a set of lovely, qualified tenants who wanted to move right away because they had come from out of state for a job.

They had chosen to live in an extended-stay hotel so they could get a feel for the area before choosing their home. The key is to get the full story if you can. On the other hand, if tenants want to move in several months, then the timing is off. I don't want to keep the property vacant waiting for tenants — my goal is to have it rented much sooner than that. In these cases, I tell them that if the property is still available, I would be happy to show it to them closer to their move date.

Some landlords also like to use the first phone call to ask for income information and consent for a background check. I choose not to do this, because I feel it's too invasive for this early in the process. They don't even know if they like it yet! I don’t want to come across as too demanding or confrontational out of the gate. Building the foundation of mutual respect starts with the first phone call.

“Getting Started” is a weekly entrepreneurship column published in The Arizona Republic authored by the faculty of the W.P. Carey School of Business at Arizona State University. Clinical Assistant Professor of Marketing Kathryn K. Eaton teaches marketing and services marketing strategy. Her areas of expertise include consumer behavior, product and service design and health-care innovation. First published August 3, 2015.