How do we evaluate the data we collect to arrive at a decision whether or not to rent to a prospective tenant? We score applications based on income, credit worthiness, debt to income ratio, rent payment history, cash reserves of monthly rent, employment history, length of residency, background/eviction check and other factors. The scoring card used to process and approve applications can be viewed online here.
1) Does the Applicant have the means to pay the rent?
How long has the prospect been employed in his/her current line of work? Is this a new career for her, or has she demonstrated a long-term commitment to her field of employment? This makes a difference. It indicates stability, or lack thereof. Income counts, too. Is the paycheck going to cover not only the rent, but the prospect’s other expenses? If not, something’s going to be sacrificed. As a landlord, we don’t want that sacrifice to be the timely payment of rent.
2) What does the former landlord have to say?
Better yet, what do the last two or three landlords have to say about your prospect? It’s not unusual for the current landlord to soften his evaluation of the prospective tenant. After all, he’s still the current landlord. The former landlord, however, generally feels far removed enough from your prospect that he’s apt to be frank and forthcoming with information. Do you take what a landlord says at face value? Of course not! Whether that information is positive or negative, it is subjective in nature. The landlords’ feedback is helpful, but should never be a stand-alone reason to accept or deny a prospect.
3) What about bounced checks and criminal history?
Are those items important? We think yes. Combined with the other factors we evaluate, these items help to provide a complete picture of the likelihood of the prospect living up to his/her end of the rental agreement terms.
The whole picture…
The greatest lesson we bring to the table, in terms of tenant screening, is the knowledge that no single factor in a tenant’s financial picture, residential history, or references stands alone. All facts, taken together, paint the picture of the prospective resident. Taken together, our 21 point scoring card is going to lead us to a more accurate conclusion as to the likelihood our prospect will do the two things we require… pay the rent and take good care of the property. As referenced, Rice Real Estate uses a 21-point scoring card to process applications. If multiple applications are received the property will be first offered to the applicant with the highest score. If the 1st approved applicant doesn’t pay holding fee within 24 hours of approval the property will be offered to the next in line and so on.
Note: by utilizing our proprietary scoring card, Rice Real Estate has never had to evict a Tenant we placed into a managed rental property. Download Rice Real Estate’s Scoring Card here.
Rice Real Estate offers Las Vegas Property Management
Rice Real Estate is a full service residential real estate brokerage offering Las Vegas Property Management in Summerlin, Green Valley, Green Valley Ranch, Seven Hills, Southern Highlands, Henderson and Silverado Ranch.
We are selective when it comes to new partnerships, adding only a few properties each year in order to provide the highest level of attention to each one. Our team is on the ground, all hands on-deck to safeguard our client’s property and bottom line at all times. Contact us by calling 702-551.9592 ext 1 or email us.