Blog Post

Evaluate a Rental Application

Dustin Edwards • Jan 27, 2020

4 Items to Evaluate on a Rental Application

Rental Application Analysis
Leveraging the power of the internet it is easy to find a rental application. Or even if you don’t want to do that you could go into a Staples or Office Depot and pick up a packet of “Rental and Credit Check”. If you review the forms from a few different sources you will notice that each of them are pretty similar in nature. Of course, if each rental application is nearly the same how can it be so challenging to find the right tenant?

Part of the challenge is that a rental application is like any job application. While the form remains the same for all candidates each potential candidate provides different information. The key is which information provided is going to result in the best possible tenant for your property?

Common Items on an Application

While there are many fields on an application there are a few that often draw the attention of property owners and property managers. To help you get started in evaluating a rental application consider a small sample of the following questions:
  • Pets (Y/N)?
  • Current Smoker (Y/N)?
  • Bankruptcy (Y/N)?
  • Income
Pets on an Application
Allowing pets in your Long Beach rental is an important decision. Pets are one of the most common forms of damage to a property. Of course, what if the pet they have is a hamster? Or even 3 gold fish? When property owners often envision pets they think of the worst case scenario like an animal busting up drywall but that isn’t necessarily the case. Ask the prospective renter what pets they currently have and even if they are planning on expanding their pet family to understand if that is a challenge in their application.

Current Smoker
Smoking provides a few challenges to a property. One of the first challenges, that is often overlooked, is that of being a fire hazard. Improper disposal of a cigarette could cause even something as mundane as garbage to catch on fire and cause damage. The other damage is that of the odor as it can get into drywall and carpeting making it challenging for future renters who aren’t smokers. Of course with these challenges does this mean you don’t rent to smokers? What if they only smoke outside? What if they count “vaping” as a type of smoking? What if they are chewing nicotine gum? Take time to understand the true habits of the prospective renter to see if it is a match for you and the property.

Bankruptcy
In life few have escaped without some financial challenge. Simply because someone has had a bankruptcy in their past certainly shouldn’t eliminate them from your pool of valid applicants. Find out more about the bankruptcy to determine when it occurred. Was there a particular reason it occurred? (i.e. maybe it was in a tough economic downturn). Understanding the full story of the bankruptcy can help you to determine if this is the right renter for your home.

Income
We invite you to consider evaluating income much like a lender would evaluate income when buying a property. Someone might be willing to pay $2,800 a month in rent but if their declared income is $3,800 then that could pose a challenge. When a bank evaluates a home buyer they traditionally like to keep the mortgage payment at <45% of the monthly gross income of the applicants. As you evaluate each rental application set a rule of percentage of rent vs. gross income and evaluate each application with that same rule in mind.

Evaluating Every Part of a Rental Application
The above are just four areas of consideration to evaluate when you are reviewing rental applications for your Long Beach rental. At Beach Cities Property Management we dive into every aspect of a rental application. In addition to our expertise we leverage technology throughout the property management process. From evaluating rental applications to taking payments. During the application process we implement advanced screening methods that keep us within compliance of Fair Housing Laws and help us to identify the best possible tenant for your property. When you want to find out more about how we evaluate rental applications please call us today at (562) 888-0247.

To help you see how those rental applications can transform into value for your specific property in Long Beach we invite you to fill out our free rental analysis form.

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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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